Many credit counseling companies offer their services through local offices, on the Internet, or on the telephone. Under a reputable credit counseling program, your creditors may be willing to reduce your interest rates and waive over-limit or late fees. You will make one payment each month to your counseling firm, which will distribute the funds accordingly to the creditors. In return, you must agree to stop using your credit cards and not apply for additional cards or other lines of credit.

Many credit counseling companies have faced scrutiny for misusing their "non-profit" tax status and not providing the counseling and consumer education, as required. Although companies advertise themselves as "non-profit", there is no guarantee that their services are free, affordable, or legitimate. In addition to making the monthly payment against your debt, credit counseling companies generally require upfront fees in addition to their regular monthly "maintenance" fees.

When researching a reputable credit counseling company, try to find an organization that offers in person counseling. Some universities, military bases, financial institutions, and friends and family may be good sources of information and referrals.

Be wary of credit counseling organizations that:

• Require high up front or monthly fees for their program
• Pressure you for voluntary donations towards their program. These are simply disguised fees.
• Do not disclose the negative consequences of their program on your credit.
• Refuse to send you information about their services without first requiring you to give your personal financial information or account numbers.
• Try to enroll you in a debt management plan the first time you speak with them without first reviewing your personal financial situation.
• Offer to enroll you in a credit counseling program without providing you the required budgeting and money management education.
• Demand that you make a payment towards their program before your creditors have agreed to reduce your interest rates and payments. How will you know if you can even afford it?