Credit counseling is usually a free, nonprofit service that offers an alternative to bankruptcy. Each agency assigns you a counselor who reviews your debts, assets, income, and so on, to help you identify your options other than bankruptcy.

Sometimes the credit counselors are bona fide financial gurus, but more often they're simply well-trained, well-meaning volunteers who offer an excellent service. All credit-counseling agencies offer their services in complete confidentiality and may offer services over the phone and Internet, as well as in face-to-face consultations.

Keep in mind, however, that not all credit-counseling agencies are nonprofit, and some are almost like scams.

Making Sure the Counseling Is Free

Your initial counseling session(s) should be completely free. If it isn't, get out as fast as you can! Many wonderful nonprofit credit-counseling agencies exist, so don't waste your money on an agency that charges you for counseling.

While you may have to pay a small fee to consolidate your debt, the counseling session itself — in which your finances are sorted out and advice is offered — should be free.

Getting Comfortable with Your Counselor

Be sure you trust your counselor and feel confident in his or her abilities. If you don't, find out whether you can have another counselor assigned to you. Keep in mind, however, that your agency is probably a nonprofit organization with limited resources. You should have a darned good reason for wanting to be assigned a new counselor before you ask for this special treatment.

Taking Advantage of Free Financial-Education Opportunities

Credit-counseling agencies often offer free short seminars or informational brochures on how to get out of debt, manage money, save for a down payment on a house, save for retirement, and so on. They do this as a service to the community, like any nonprofit agency may do.

If you're not ready to speak to a counselor but want more information, consider attending one of these seminars. There you'll meet one or more of the counselors who work for the agency, and you may become more comfortable with the idea of confiding in this perfect stranger. Credit counselors are listed in the Yellow Pages and on the Internet.