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Consumer credit counseling involves practicing smart financial decisions to help you get out of debt.  You can either do it yourself, or approach a credit counseling agency.  If you decide to work out your own credit counseling, you need to start with becoming acquainted with your debt.  Know exactly how much you are spending, what you are spending it on, any balances you may have, and the interest rates you are paying.  The next step, if you are serious about getting out of debt, is to freeze all spending on your credit cards.  This is a smart move when you are trying to get out of debt.  After this, set a budget.  A safe rule to follow, advocated by economist Elizabeth Warren, is to dedicate 50% of your take-home income to must-have expenses, such as a mortgage, car payments, food, utilities, etc.  Another 30% of your income should be spent on your wants, including new clothes, cable TV, presents, and such.  The remaining 20% of your income should be devoted to savings.  Make whatever changes necessary to bring your budget in-line with these guidelines.  While these are strict standards, they do offer a basis on which to structure spending.  When you have your budget in order, it is time to attack your debt.  Make a list of your debts and the interest rates for each one.  There are various opinions about which order to pay your debts in, but a standard rule is to pay the debt with the highest interest rate first because it is costing you the most.  If however, that seems too daunting because that debt is particularly large, you can start with paying off the smallest debts to give you a sense of accomplishment, or you can pay the debt that causes you the most stress.  Whatever method you choose, work steadily at your debts and pay them off one by one.  Once you develop a strategy, stick with it and make sure to keep your spending in check.           

If you do not have the discipline to work through your debts yourself, consider getting professional help from a credit counseling agency.  This service can sit down with you and help you create a budget or give you financial advice specific to your situation.  If you need extra help, they can set you up with a debt management plan (DMP) in which you pay them a set amount each month and they pay your bills for you.  They talk to your creditors to negotiate lower interest rates in order to save you money.  A word of warning is necessary here, though.  There are many credit counseling agencies that are dishonest in their business.  Remember that non-profit does not always mean free, so watch for hidden fees.  Also, keep in mind that the credit counseling agencies are often paid by your creditors based on how much they can get you to pay, so they are not always looking out for your best interests.  Be sure to find a company that you can trust with your money and financial future.  Through a free consultation, we can help you decide which option is right for you!