There are a variety of tools available to allow you to get out of debt and rebuild your credit. Millions of Americans are involved in debt counseling. Consumer Credit Counseling is a bit of a misnomer. We view this industry as glorified debt collectors with good public relations. Ask yourself, what is the difference between a "debt collection agent" and a "consumer credit counselor?" One threatens you with wage garnishment, court judgments, and some even threaten to send you to jail (something which is entirely unethical and illegal). The other promises you a dream that you can get out off the debt treadmill and start over again. But in the end, they are both doing the same thing aren't they? They are getting your money.

Don't be fooled by the "non-profit" designation either. That's a nice word that makes consumers think it won't cost very much for the services of the consumer credit counselor. But it does not mean you will pay any less! It only means that the company and their crooked accountants make sure that the books reflect zero profit at the of the year. This does not mean that the owners of the company don't make exorbitant salaries for their services.

If it sounds like we are biased, we are. We despise phony consumer credit counseling agencies. Many of our clients come from counseling agencies who overcharged for their services and did not even come close to getting the results advertised. Many client's credit scores are even worse after they enroll in the service. That's not counseling. . . that is debt collection. Sure there may one or two satisfied debt counseling customers out there somewhere, but we have never met one.

The chart below is set up to compare the different chapters of consumer bankruptcy to credit counseling and plainly shows the advantages and disadvantages of each.