How to Use Consumer Credit Counseling Services

Mortgages, car loans and student loan services are tools for helping people succeed in the long term. However, debt can be compounded by the loss of a job, medical bills or badly managed credit cards and equity lines. If you find yourself in more debt than you can comfortably handle, you can use consumer credit counseling services to find a way out from under your mounting bills.

Instructions

1. Find a credit counseling service. These are community-based, nonprofit organizations.

2. Book a meeting with a credit counselor, either over the phone or face to face. Most credit counseling services have toll-free numbers so you don't spend more money unnecessarily.

3. Collect all your financial paperwork so you can provide as much information as possible to the credit counseling service. Their job is to help you develop the best possible budget and debt repayment strategy.

4. Work with the credit counselor to analyze your sources of income and expenditure.

5. Create a workable budget that lets you pay down debt while paying for necessities. If you need to declare bankruptcy, the credit counselor can explain the next steps to you.

6. Let the counselor contact your creditors on your behalf. This should stop most harassing phone calls and letters.

7. Stick to your budget and pay your bills on time according to the debt management plan suggested by your counselor.

8. Return to the credit counseling service if you are struggling with the budget, still getting dunning calls from creditors or have questions. The goal is to get control of your finances so they no longer control you.