Free Credit Counseling to Help Manage Your Debt  You can obtain free credit counseling from a large number of nonprofit and church-related organizations and get a handle on managing your debt.   What is Credit Counseling?  Credit counseling is a service offered to adults who have been unable to manage their debt and/or who have become so immersed in debt they are no longer to make payments in a timely manner. Such individuals need a variety of assistance dependent upon specific circumstances.  Among the many things credit counseling can accomplish are the following: The design of a realistic budget within which the consumer can live and which allows for payment of all bills on time and a systematic plan for eliminating “bad” debt as quickly as possible. Ultimately, the goal is to establish a regular savings plan as well. Taking over the bill payments until the consumer has developed the knowledge and skills of personal finance to manage this activity himself. Assistance with the management of debt so that it is reduced and/or eliminated as well as tools for prevention of debt increase in the future. Negotiation with creditors to obtain lower payoff amounts and assistance with securing a debt consolidation loan if warranted. Ongoing counseling in the continued management of finances There are a number of federal, state and local agencies which provide credit counseling services for free. A call to the city or county government offices will put you in touch with government-sponsored counseling.  Many religious organizations offer free credit counseling as well, and, in most cases, an individual does not have to be a member of that specific faith. Catholic Family Services would be a place to start. What Debt Management Can Do Most people who end up with more debt than they can handle have engaged in irresponsible financial activity. This does not mean that the debtor is “dumb” or lacking in common sense. In most instances, the situation is due to a lack of personal finance education and training and can be remedied with solid counseling assistance.   Credit counseling will first and foremost delineate all net income and expenses, in order to get a good picture of how much money comes in and how much most go out for bill payments and necessities. This is the first step in the development of the all-important budget so that debt management may begin. Without a budget, there is no plan for reducing and eliminating debt.   A plan will then be developed which provides for the repayment of debt as effectively and quickly as possible, given the constraints of the family income. In most instances, this plan will involve some sacrifice and certainly self-discipline on the part of the debtor, but the long-term benefits are certainly worth it. Once current debt is being fully managed, the counselor will assist the consumer in prevention of recurring debt and in the development of a solid savings plan so that future purchases and emergencies can be handled from funds on hand.