Credit counseling is an alternative to bankruptcy for a person who is in financial difficulty. Credit counseling is advice given by professional counselors to help people learn how to use credit responsibly and how to establish a payment plan to pay off creditors. In some cases, credit counseling may involve negotiating with creditors to lower monthly payments. Credit counseling agencies may be non-profit or for profit. If you are going to use a credit counseling service, check with the Better Business Bureau to verify that you are using a reputable organization. Also, find out if the agency is a member of the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA).
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