Credit counseling is an educational process for consumers about how to avoid building up debts that cannot be repaid. Credit counselors also provide options for consumers to get out of debt in the most efficient way. It is not uncommon for credit counselors to negotiate with creditors in order to create a DMP, or debt management plan for the consumer. Working out a new repayment plan might be what a consumer needs and credit counselors are able to facilitate that. Repayment options often include reduced payments, changed fees, or lowered interest rates for the client. The first credit counseling agency was opened in 1951 in the USA when the National Foundation for Credit Counseling was created by credit grantors. The objective of the organization was to promote financial education and help clients avoid bankruptcy and extreme debt. Then, in 1993 the AICCA, or the Association of independent Consumer Credit Counseling Agencies was founded because of a need for higher financial standards and better ethical conduct in the financial world.
For more information about credit counselling please visit the official National Foundation for Credit Counseling at http://www.nfcc.org/. You'll find information about conseling services in your area regarding credit and debt.