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.

Credit card counseling services offer assistance in two ways. First off, they have existing relationships with creditors including banks and financial institutions that allows them to negotiate more favorable interest rates and the elimination of late fees. Their second primary function is to work with consumers in order to educate them so that they will not fall into the same debt situation again.

The end goal is to of course eliminate credit card debt while causing the least amount of damage to the cardholder’s credit history. This is usually accomplished by making one payment to the credit counseling company who will then in turn distribute payment to all of your creditors on a monthly basis. The usual timeframe for completely paying off debt is 4 to 5 years.

At the moment the most sought after credit card counseling organization is Consumer Credit Counseling Services (CCCS). It is a debt management company that has local offices throughout the United States and in 13 locations overseas. You can contact them by simply doing a search on the Internet. While there are some unscrupulous companies in the credit counseling industry, Consumer Credit Counseling Services has a solid reputation that has been established through the years.

They are not the only reputable credit card counseling service available. Once again, when you do a search online you will see that there are literally hundreds of organizations offering the services. Be very careful with whom you commit to as a client. Be sure to write down all of your questions in advance and if they hesitate to answer any of them, or something does not sound quite right, then move onto the next company.

You also want to check with the Better Business Bureau to make sure that the company has no complaints against it. Never feel obligated or pressured into doing business with any one particular organization. If you feel as though you’re being pressured into making a decision that you are not comfortable with then walk away from that company and find another.

You are going to want to know exactly what is expected of you as far as payments go. You must also get in writing exactly what kind of help the credit card counseling service intends to provide you with. That includes how much it will cost, how much your monthly payments will be and how long it will be until you have all of your creditors completely paid in full.