Credit counseling is a process of educating consumers about personal financial management and how to avoid accumulating debts that cannot be repaid. The goal of credit counseling is to help consumers find ways to repay their debt through careful budgeting, reducing interest rates and better management of finances.

Credit counseling agencies usually recommend enrollment in a Debt Management Program (DMP) and therefore sometimes you will hear the terms ‘Credit Counseling’ and ‘Debt Management’ used interchangeably.

Some consumer credit counseling agencies are non-profit organizations, while others are for-profit organizations. We strongly recommend that you contact a non-profit credit counseling agency. Beware of agencies that want to charge you before you are officially enrolled in a DMP: You should only pay when you enroll into a plan.

You might consider contacting a credit counselor if:

• You are having difficulty paying multiple forms of debt, such as credit cards, home mortgages, or auto loans.
• You can’t pay the minimum amounts due on your credit cards or other bills.
• You’re consistently late paying one or more of your regular bills.