Overwhelming debt payments are never planned. Often times a personal crisis turns into a financial crisis when proper planning was not in place prior to unforeseen events. As a result, things like a job loss, health crisis or an other event (or other events) create mountains of credit card debt that you find impossible to manage on your own.

One of the challenges with credit card debt is that if you just move it around through debt consolidation or other strategies, and do not address the behaviors that created the problem, the solution acts more like a band aid than a long term solution.

Credit card counseling is not a quick fix but a holistic approach to money management issues and high credit card debt. The process includes financial counseling and providing educational tools to help with budgeting and money management. Counseling will assist in identifying and addressing financial habits that are sabotaging your success. In addition to analysis and education, professional counselors work with the credit card companies to reduce the interest rates on cards enrolled in the program. Fees might also be waived, reducing your overall balance. This will result in more of your payment paying down the debt, rather than paying high interest rates.

Unlike debt negotiation, this strategy calls for the balance on credit cards, collections or other debt to be paid in full over a period of about five years. Your monthly payment will be structured to reach this goal, and may result in higher monthly costs, rather than lower payments. The credit cards enrolled in the program will be closed and you are encouraged to live on cash to prevent additional debt from accruing.

Adding the counseling feature will help you maintain good financial habits and the ability to remain debt free for the long term. Having money management skills is like giving yourself a raise. You will learn to critically look at spending and to spot places where costs can be reduced. These skills can produce lifetime benefits. Credit counseling services are funded by the credit card companies, allowing you to take advantage of the service without paying expensive fees, in addition to the credit card payments. To qualify for the program you must be able to make the monthly payments in a timely manner. Multiple cards will be converted to a single payment, which will help you successfully complete the program and will instantly simplify your finances and monthly bills.