Consumer Credit Counseling Agencies are organizations that provide credit counseling to customers. These agencies are usually non-profit organizations and employ certified counselors.

Due to rampant problems with early credit counseling services, the credit counseling industry created specific standards to ensure that customers are not duped and are protected from frauds. The association of credit counseling agencies lists the standards to be followed by a credit- counseling agency. Widely known associations in credit counseling include the Better Business Bureau, the National Foundation for Credit Counseling (NFCC) also known as Consumer Credit Counseling Service (CCCS) and The Association of Independent Consumer Credit Counseling Agencies (AICCCA).

A customer is advised to confirm if the credit counseling agency he is dealing with is affiliated to any of the above associations. This assures the customer that the agency is reputed and that it follows the standards set by the associations. Another advantage in dealing with certified agencies is that they offer free first credit counseling.

Certified counselors who work for these agencies make a complete financial assessment of customers; analyze the financial situation of the customer and develop a reasonable budgeting plan. These systematic steps help a consumer with getting a better handle on his financial planning and debt management. The customer is able to keep a track of his expenditure, make appropriate investments and save money for emergencies.

In case of customers who are caught in a debt trap, credit counseling agencies offer a complete Debt Management Program. Under this program, the customer is relieved from making payments to multiple lenders/creditors. Customers make a single monthly payment to the agency, which, in turn, disburses the payments to the different creditors. Customers are also provided assistance with refinancing, debt consolidation, and opportunities to reduce interest on loans.

Credit counseling agencies have earned a reputation for their positive contribution in both the economical and the sociological sphere. This has motivated many men and women to seek their services and escape the “debt trap”.