by 
The Curious Bag
-
<h4 class="dechead">On One Hand: Proceed with Caution
Everyone has seen those television ads promising confidential credit counseling (usually in the form of debt consolidation). Most of these organizations are not legitimate. Be wary of any company that asks you to pay a large, flat fee upfront to "make your debt go away" or similar claims. A real credit counselor would direct you toward free resources to help you get out of debt instead of pressuring you into paying a fee.
On the Other: Some Are Legitimate
To find a legitimate credit counseling service, visit the National Foundation for Credit Counseling website. The nationwide organization has affiliates in almost every city, usually known as Consumer Credit Counseling Services. Each member agency should display the NFCC member seal.
Bottom Line
While there are ways to make repaying your debt easier, any company that promises to make it "go away" or that you'll only have to pay "pennies on the dollar" is just trying to scam you out of money. Stick with an NFCC member service, or talk to your local bank or credit union for advice.
Source:
MSN Money: The Consumer's Guide to Credit Counseling
FTC: Fiscal Fitness: Choosing a Credit Counselor
More Information:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC