More and more people have to face their bad decisions, excessive expenses and the direct result of it: debts, over debts. Thousands of households in the world have met their biggest fear: the threat of bankruptcy, as a result of a total financial chaos, involving money problems, loans, bills, mortgage payments. Individuals, families spend more money, have higher debts then their annual income. Before giving up this endless fight with loaners, credit holders, and banks, just take your time, seek financial counseling and make a debt management plan.

The credit counseling industry offers a big scale of opportunities, and first hand solutions, while more threats, more costs are sneaking in your life. Before committing yourself to any counseling help make sure you have considered and checked all your solutions. One question could be inevitable: Whom should you borrow from?

While searching for the best methods of surviving and avoiding a financial disaster, why not look for help in the non-profit field. Many non-profit organizations stick to their main principle: help people get rid of their debts, and have a fresh start. It is the ideal way of receiving help without spending any more money. These non-profit organizations have their own funding, so you don’t have to spend more of your money, still receiving professional help and counseling.

It is wise to make a small research before committing yourself to one of these organizations. A main issue should be privacy policy, as the last thing you need is the leak of information. As a further step you need to check the services you are going to be given: such as counseling, debt management planning, budgeting advice, etc. Check the reliability of the organization; make sure it has connections with professional business groups, and whether your funds are protected.

The purpose of financial counseling and planning is to collect your bills, check your expenses, and decide above the amount of money that needs to be sent to creditors. You need a good plan, to figure out the sum of money you have to pay each month. The plan is consequent, permitting the satisfaction of daily necessities and basic needs, while balancing your current debt problems.

Once you found a plan that fits you the best, and joined a program, the annoying and disturbing phone calls of the creditors will stop. Due to the negotiations of your counselor with creditors, rates will be reduced as well as the debt period. This is a reasonable solution for both creditors and counselors, avoiding bankruptcy trials and court.

How does it work? A few steps in making a debt management plan:

	A full evaluation of the current financial situation, including personal income, expenses, debts to creditors, and any other relevant information.
	Using all this information the result is a Financial Statement, providing numbers representing the sum of money to be offered to creditors.
	Negotiation starts with creditors, with the aim of reducing payment. Most creditors agree with these debt management plans, as they are sustainable and realistic.
	Payments are transferred to creditors in order to reduce debt.
	During the plan you have a professional’s guidance and advice, to which you can turn while you have contracted them.
	The plan is regularly checked to see if it has fulfilled its purpose, and it is still efficient.
	The plan continues until the debts are paid, or the client voluntarily ends the agreement.