You are not alone. There is help available through consumer credit counseling services. Some services offer no cost budgeting and financial planning counseling and workshops.

If you have serious debt, you can enroll in a debt management plan (DMP) for a fee. In general, a DMP reduces the amount of interest and fees owed to creditors to help you repay your debts in less time and help you avoid bankruptcy. While in a DMP, your credit cards are usually suspended and you are not allowed to open new credit cards.

How do I choose a credit counseling service?
The Federal Trade Commission (FTC) offers this advice for finding the right service for your family:

• Call several services. They are listed in the phone book under "Credit and Debt Counseling Services."
• Ask what services are provided and the cost of each service. Get the information in writing.
• Avoid organizations that push DMPs.
• Find out which services and educational materials are provided for free.
• If you cannot afford the fees, ask if the fees can be waived or reduced.
• Ask if the organization is licensed to do business in California.
• If you decide to use a service, make sure you receive a written agreement or contract.

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