Advise on Credit Counseling

I have been considering credit counseling because I am currently a full time student and am having trouble making ends meet, but my income is too high to receive any type of financial aid because I still work full time. I have heard of situations where these companies don't get your payments and interest lowered. How trustworthy are the majority of these companies and is there anything I should look for when selecting a company to work with?

Any advise will be greatly appreciated!
Thanks

[Jeter]

1) make sure they are non profi which means they don't require a one month payment. Also make sure they don't tell you that your 1st payment is "held in house" or in escrow until you finish the program.

2) go with a (non-profit) community credit counseling service from your state (ie CCCS of NJ, NY, CA etc.) They are most likely to be the most experienced and most closely governed.

The major thing to look for is to be sure not to fall into the trap of paying for a lot of fluff. Even CCCS sometimes asks you for money for personal counseling sessions that include all kinds of strategies that you probably won't need unless you are dealing with a mortgage,cars etc. Your situation seems pretty cut and dry-you just want to pay less on your credit cards. So do a phone interview.

Credit counseling is usually a good way to go . Sometimes they can't get interest lowered because not all credit cards participate in creit counseling programs. Most do, however, so if you have a number of different credit cards it is usually a good idea.Keep in mind that you will not be able to use any credit cards that you enter into the program.The accounts will close.

Jeter

While I am all for going to credit counseling servies, keep in mind that many of them are supported by the credit card companies.

[JETX]

ElliotG is absolutely correct. Debt consolidators (or counselors) are not in the business because they are 'nice guys'. Like any 'business', they need to have income to survive. The key is "where is that income coming from and can that source hurt YOU?"

So, one of your first questions should be "How are you funded and who pays YOUR bills?". Your next question should be, "Do you receive ANY direct or indirect funding from creditors?".

The reasons you want to know these answers is that they (the consolidator) if funded by the creditors can allow them (the 'enemy') access to YOUR provided information that they might not normally have.

All concolidators receive 'discounts' from the creditors (they negotiate a 70% reduction in your bills for payment, then collect 80% from you, pocketing the difference for themselves). You want to make sure that they have a complete 'arms length' detachment from the creditors and that YOUR information will NEVER be available to them.

A good additional source on this topic is at: [url]http://www.budhibbs.com[/url]

Thanks for all the great advise. I will be sure to ask all the right questions to help me choose the right company to help me.
Thanks a Bunch!