This is a question that will have different answers to different people, and since no two sets of circumstances are ever the same, let’s instead take a look at how credit counseling services work. 

Credit counseling services work with your creditors to do several things. First, they work to get your interest rates reduced. Secondly, they work it so that all of your payments are consolidated into one, lower monthly payment that is easier to meet. Third, they stop the creditors from calling, they get you out of the red, and they get you back onto your feet so that you are able, once again, to meet your payments. And fourth, they take out a fee every month as payment. 

So, that is a basic summary telling you how credit counseling services work. Now, the big question is, will a credit counseling service work for you? Well, here is a general rule of thumb to follow. 

First, if you are having trouble meeting all of your payments, or are just barely able to slide through, then credit counseling might work for you. They can cut your payments enough to get you a little more leeway, and that can oftentimes be the “make it or break it” point in your debt situation. 

If, however, you have amassed a huge amount of debt that you cannot conceivably even begin to take on by the month, then you will need something more drastic, like bankruptcy or possibly debt settlement.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.