For people who are in need of financial support and advice, one resource is the Consumer Credit Counseling Service. Creditors are quite favourable if a debtor uses such a service, and can even offer a reduced payment plan because using such a service shows clear willingness to pay.
Unfortunately, there is some controversy over such schemes. A number of them claim to be what is called a "non-profit" organization. When an organization makes such a claim, it may appear they are not going to take your money. However, such organizations can and have taken money from clients. What is worse, they have even charged hidden fees, or asked for inappropriate voluntary contributions, which only result in more debt for the client.
Choose a service that offers face-to-face meetings, rather than telephone or Internet contact. The institution that lent you money in the first place will offer quality credit counseling. The local consumer protection agency and even your friends and family will be able to offer good - and free - advice also.
Be wary of credit counseling organizations that:
Charge high up-front or monthly fees for enrolling in their program.
Pressure you to make "voluntary contributions," which is another name for fees.
Services that don't give you free information without asking for your financial details.
Organizations that try to enroll you in a Debt Management Plan (DMP) without taking a good look at your financial circumstances first.
Companies that try to enrol you in a DMP without first offering you support in money management skills
Companies that demand you pay money into a DMP before your creditors have accepted you into the program.
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