If you are overwhelmed and decide to seek the services of a debt counseling agency, make sure you find a good one.

Before we delve into this topic, let me say that every trade has good people and bad people. Unfortunately, some debt counseling agencies give the good ones a bad name. With that said, there are PLENTY of legitimate Debt Counseling organizations that will help you manage your money and develop a budget that is suitable to your situation.

The first thing to do is RESEARCH. Look for a debt counselors in your area of residence that will work with you face-to-face. You may want to check with the State Attorney General or the Better Business Bureau (BBB) to get a sense of their reputation. Both sources can tell you if complaints have been filed against the counseling agency.

The FTC recommends asking questions such as the following, when looking for a good credit counseling service:

· What services do you offer?

Stick with debt counselors who offer a full range of services including budget counseling, savings and debt management classes. Avoid organizations that do not encourage you to analyze your current debts or financial situation. This is important as we discussed in step #4.

· Will you help me develop a plan for avoiding problems in the future?

· What are your fees? Are there set-up and/or monthly fees? Get a specific price quote in writing.

· Will I have a formal written agreement or contract with you? Do not sign anything without reading it first. Make sure all verbal promises are in writing.

· Are you licensed to offer your services in my state?

· What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained?

· What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure?

In addition, avoid organizations that promise to: · guarantee they can remove your unsecured debt

· promise that unsecured debts can be paid off with pennies on the dollar

· claim that using their system will let you avoid bankruptcy

· require substantial monthly service fees

· demand payment of a percentage of savings

· tell you to stop making payments to or communicating with your creditors

· require you to make monthly payments to them, rather than with your creditor

· claim that creditors never sue consumers for non-payment of unsecured debt

· promise that using their system will have no negative impact on your credit report

· claim that they can remove accurate negative information from your credit report.