Credit and Debit counseling is the same premise. These are services that you can sign up for to help you get control of your debt. Credit counseling will be geared toward teaching you how not to get into debt. In most cases when you run into debt there is a way to repay it. With bankruptcy laws changing in the United States, you are no longer allowed to simply remove your debt without any consequence. You have to see a debt counselor before you wish to claim bankruptcy. Which is a good idea because if you can repay your debt without having the word bankruptcy on your credit report for 10 years then it is an option you should take. Should you choose not to then not only will you have bankruptcy for 10 years on your report but you will also have to repay the debt anyway.

What happens with credit/debit counseling is that you find a counselor and they will review your debt and then they can offer you a deal. For example, it you have
$ 10,000 worth of combined debt, you go to the counselor and she works out a deal with your creditors for you to pay a monthly fee of $ 300 that will cover all of your creditors. You will pay this amount until the debt is paid off. In most cases, whatever you are putting into consolidation you will lose. If you have a charge card with debt they will close your accounts. You want to make sure that you have the right information if you are thinking about putting a car loan into consolidation. Some states may have you turn in the car.

Get all the details and don't be afraid to ask questions. When all is said and done and your loans and credit cards are paid off you will feel like a weight has been lifted. Now, you can take on the task of rebuilding your credit. You can start with small credit cards with small limits. The good things I snow when you apply for a credit card the creditor will see your accounts closed but the debt has been paid. You won't be marked by the word bankruptcy for the next 10 years.