Debt consolidation credit counseling is actually a misnomer; debt consolidation and credit counseling are separate things.

A debt consolidation company may claim to offer credit counseling, but their counseling is usually limited to the advantages of a consolidation loan. There are a lot of scams out there, and these scams have proliferated since the Bankruptcy Abuse Prevention and Consumer Protection Act was passed.

Most people have heard that it's harder to declare bankruptcy now and that you have to get credit counseling first, and they assume that credit counseling is a necessary step in resolving their financial problems.

Credit counseling can help, but it's not always necessary or required, and you certainly don't want to get it from a so-called debt consolidation company.

Debt Consolidation Debt consolidation is one option for dealing with overwhelming debt. It's not usually the best option, but it will give you some breathing room and make your monthly expenses more manageable. Debt consolidation credit counseling may be a good idea if the counselor stresses these key things:

• You can get a secured loan (usually a home equity loan) with a low interest rate and loan costs.
• You change your spending habits and avoid adding any debt.
• You have a stable income source and can make all of your payments on time.

Credit Counseling Debt consolidation credit counseling can be a very good thing - although it's not always necessary. Credit counseling is primarily education. They will work with you and teach you how to set up a budget and trim spending. They'll help you find solutions to your credit problems that are based on changing the way you manage your money.

A good counselor makes it clear that he or she can't offer easy fixes, and they emphasize that getting your finances under control takes hard work and discipline.

Sometimes, in cases where there is no other solution, credit counseling agencies will help you set up a debt management plan. They will negotiate on your behalf with your debtors to decrease your payments so that you can manage them, and will help administrate the program. They may charge a small administrative fee for debt management, but all other services are usually free.

Debt Consolidation Credit Counseling BEWARE! There's a high probability that a company that advertises "debt consolidation credit counseling" is going to scam you. Credit counseling services rarely recommend debt consolidation. "Debt consolidation credit counseling" companies do not offer a full range of credit counseling; they sell consolidation loans.

Self-Help You can do almost anything yourself that a credit counseling service can do. You can prepare a budget; you can control your spending; you can even negotiate with your creditors.

The only time credit counseling is required is when you plan to file bankruptcy. For some people, however, the best self-help is to get help. If that's your case, make sure you get it from a reputable credit counseling resource - one that doesn't sell consolidation loans.

Ask your local churches if they offer this service, you may be surprised to learn that many do.

» Debt Consolidation Help - Who Should You Trust?
Debt consolidation help can be found fairly easily. In fact, the Debt-to-Income.com website provides a complete library of free tools and resources.

» Debt Consolidation Home Equity Loan - Which Loan Is Best?
Using a debt consolidation home equity loan may be a tool you wish to consider as you create your debt relief plan, with an overall goal of becoming debt free.

» Debt Consolidation Home Loan - Getting Debt Under Control
A debt consolidation home loan is the most popular choice to get debt payments under control. The trick is making certain you only use this option once.

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