Debt counselling companies arrange for you to pay back your total outstanding debt on terms that are manageable to you.
They could also negotiate a lower interest rate, making it easier for you to become debt free.
These counselors often charge you a nominal fee for their expert advice, but this fee is usually worked in to your "new" installment amounts and offer a service that is highly recommended should you find yourself in financial distress.
Every granter looks at your rating and whether you have received counseling in the past.
It is highly unlikely to obtain a loan or mortgage whilst repaying debt after a counselors' advice.
But, in the long run, it is the best way to achieve financial freedom and be free of debt.
If this status is maintained for a certain period of time, it will mean a lot more for your credit report.
The debt counselors will work out a plan that works for you, so that you can settle your accounts and become financially independent again.
In the 1980's, granters created counseling to recover money from people in debt.
Today thousands of people undergo debt counselling as the cost of living has sky rocketed and many people are not quite skilled enough to recover their debts by themselves.
Counselors will help you to become debt free at a fraction of the price it costs to file for bankruptcy.
To get debt counselling is a good idea and should be considered if you find yourself in financial distress.