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  If you are considering a credit counseling service to assist in resolving problems related to debt, the BBB offers the following information. A Counseling Service can involve arranging payment plans with creditors. Consumers choosing a counseling service should understand the costs and fees of using a service before becoming involved. Many services charge a set-up fee as little as $20 and monthly fees of 6-7% of the money sent to creditors, not to exceed $20 per month. It is important to calculate the costs and fees - both initial and ongoing - to be sure they do not increase overall debt. Find out if the service requires that creditors reduce balances owed by 100% of payments you make, or only the amount left over after fees are deducted . Consumers should be wary of services that offer loan to loan money. A new loan may increase the expense of repayment. Also, be cautious about using any service that promises unrealistically low interest rates and lower-monthly payments. If total debt is relatively small, Consumers may consider contacting creditors directly to save the cost of using a service, in conjunction with financial counseling to establish a self-administered repayment plan. BE SURE TO ASK: * Is the service insured and bonded? * Are client funds held in separate trust accounts? * How often are payments made to creditors? * Are financial counseling and educational programs offered? Determine whether or not the actual counselors are certified by a recognized accrediting organizations, such as the National Foundation for Consumer Credit. And Finally, some credit counseling services operate as "not-for-profit" organizations. Do not presume that such a service will be more effective or lower in cost because of its "not-for-profit" status. Always do your own thorough comparisons and research BEFORE you sign up. Include a call to the BBB for reports on specific services you are considering.