If you’re in debt and having trouble paying your bills, you may find help and support through consumer credit counseling. Credit counseling is a way for people to get needed financial education and guidance during tough, financial periods. A professional counselor can help you develop a plan to get you back on your feet and through these often stressful periods. With consumer debt levels at record highs, it’s not surprising that many consumers are turning to credit counseling and educational services.

A consumer credit counseling service can do several things for their clients. An initial step is to help to set up a budget and determine how much you can devote each month to paying your bills. They can help to facilitate lower interest rates and monthly payments with lenders and credit card companies as well as make the payments directly to the creditors on behalf of their clients. In addition, credit counseling services may be able to get creditors to forgive or reduce fees and penalties.

Fees for various credit counseling services vary. I found a good, reputable firm that provides a great deal of its counseling and educational services for FREE. GreenPath Debt Solutions is a non-profit organization that has been helping millions of families since 1961. Although there’s no charge for many of their services, they do charge some nominal fees when providing bankruptcy counseling or debt management services. In my interview with Jennie, in Business Development, GreenPath does receive government subsidies. And, instead of the consumer having to pay higher fees for debt management services, the creditors often compensate GreenPath a portion of the payments they receive for their counseling and assistance. It’s important to recognize the difference between a true credit counseling service and someone who is trying to take advantage of people who are going through a rough time.

Bankruptcy law requires you to use consumer credit counseling services before you can actually file. GreenPath is approved by the Federal government to provide this type of prerequisite credit counseling whereas many credit counseling agencies are not. Consumer credit counseling services can be effective at helping you get caught up. Statistics from the National Foundation for Credit Counseling suggest that around half of people in credit counseling debt repayment plans are able to successfully complete the plan. Of those that aren’t, a good portion file for bankruptcy.