It is no surprise that we are seeing ads on television and the radio promoting debt consolidation and credit counseling services. There are now over 1000 of these types of companies working throughout the United States serving over 400,000 consumers. I think it is safe to say that those numbers will only grow as well.

There are a myriad of reasons why anyone would want to work with credit card counseling services. Of course, it is quite obvious that they are struggling with mounting credit card debt, but how did it happen? Well, for many they are victims of being laid off by companies that are either downsizing or have gone out of business. For others they are seeking credit relief because of medical bills and other expenses that have spiraled out of control.

At this point it does not really matter why you are seeking the services of a credit counseling company. The realization is that your credit card bills have grown to such a point where you can no longer afford to pay them off and are desperately seeking assistance with your finances.

Debt consolidation programs are a much better alternative than filing for bankruptcy. Regardless of what you may hear, filing for bankruptcy will have an adverse effect on your life from a financial standpoint for many, many years to come. Credit counseling and debt consolidation however, are a responsible alternative that shows your creditors that you take responsibility for your debts and are willing to do what’s necessary to pay them off.

Credit card counseling services work directly with your creditors to lower your interest rates and make your payments more affordable. In the vast majority of cases they already have a pre-existing working relationship with many of the banks and financial situations that you owe money to. These relationships give them experience in knowing what to look for to best serve you.

You will be assigned a specific credit counselor who will work out a monthly payment plan with you. Monthly payments will be sent to the credit card counseling service and they will distribute payments to each and every one of your creditors on your behalf. There are also counseling sessions that can help you identify how you came to be in your current situation and how to avoid it in the future.

The banks and financial institutions in turn are more than willing to work with debt consolidation and credit counseling services because they realize that without these organizations many people would be in default and they would then get nothing. So in essence, these services serve both the consumer and the creditor by bridging the gap between the two in working out a payment schedule that is satisfactory to all parties concerned.