Possibly the most confusing thing for most people is determining what a credit counselling agency will actually do for them. One thing to remember is that most of these companies are not non-profit organizations (There are some but the general trend is for-profit). They are businesses that need to make money and generally speaking that money will come from you, the client.  

Credit counselling (known in the United Kingdom as debt counselling) is a process that involves offering education to consumers about how to avoid incurring debts that cannot be repaid through establishing an effective Debt Management Plan and Budget.  

Credit counselling is usually less typified by functions of credit education or the psychology of spending habits, rather credit counselling establishes a planned method of debt relief, typically through a Debt Management Plan.  

Credit counselling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counsellors, usually offer reduced payments, fees and interest rates to the client. Credit counsellors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan. 

Okay so that was the cut-dry, dictionary definition of a credit counselling service (AKA debt settlement service). Let’s go into a little more detail. Credit counselling services have the potential to be an extremely effective and reliable solution to clearing any type of debt.  

For this, a credit counselling professional will try to understand your present financial condition. This will help him to select an appropriate plan for you. With this plan, you will be able to take control over your financial matters.  

Though the option of credit counselling is easily available but you will have to face certain problems in using them. 

Debt settlement companies are also very famous among the people because these companies can enable you to reduce your liabilities by negotiating with your creditors on your behalf. This option is reliable and many people are using it to get rid of their financial liabilities.  

You can also choose the debt consolidation program as it is easily available in the market. With the help of this plan, you will be able to pay the monthly debt repayment easily, if you don't have any multiple loan amounts. You can take complete advantage from these options and plans for resolving your financial difficulties. You can use the debt settlement plan for getting rid of your liabilities as it is one of the best suitable options.