Credit counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education.

Credit counseling sometimes involves negotiating with creditors to establish a debt management plan for a consumer. A debt management plan may help the debtor repay his or her debt by working out a repayment plan with the creditor. Debt management plans set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made credit counseling a requirement for consumer debtors filing for Bankruptcy in the United States. In order to meet this requirement, during the 180-day period preceding the filing of bankruptcy, the debtor must complete a program with an approved nonprofit budget and credit counseling agency. Such a program may include, but is not limited to, one counseling session conducted by phone or over the internet.

Most of the television commercials promising to get you out of debt are for Consumer Credit Counseling Services (CCCS). These services are funded by the credit card companies and reduce consumers' interest but not their principal balances.

These organizations receive "fair share payments" from the credit card companies. CCCS organizations enable credit card companies to collect some interest and their principal in full over a longer period of time. They do not reduce your principal balance regardless of your financial hardship or personal circumstances.

Many CCCS organizations were created as not-for-profit entities to provide consumer education. However, the Internal Revenue Service has investigated some of these organization's income tax exemptions for making too much profit while providing too little consumer education.

Despite the problems, CCCS is appropriate for some individuals. If you carry a manageable debt load but need help in budgeting and planning, then a CCCS may be your best alternative. Just be prepared, CCCS programs usually take a minimum of 4 years to complete and show negatively on your credit report just like a bankruptcy.

Our Debt Settlement Program is not a Consumer Credit Counseling Service. We are not funded by the credit card companies. We are a for-profit company that works for you, without a conflict of interest. Finally, our debt settlement program is designed to meet your financial needs and usually takes a maximum of 48 months.

Stop dragging around those credit card debts, medical bills or department store charge card bills. Act now and you can avoid bankruptcy and ACHIEVE DEBT FREEDOM!