If you are in trouble financially, you have probably heard the term credit card counseling. However, do you understand what it is? You'll often hear this term used in the same manner as debt negotiation or debt settlement, but actually, it’s a completely different process. With credit card counseling, you work with a credit counselor to pay off your debt in more affordable, smaller payments.

The people most likely in need of credit counseling are those constantly receiving annoying phone calls from bill collectors at all hours of the day, or have gone to collection agencies. If you think you may benefit from using a service such as this, know as much as you can and decide what would be the best way for you to work with a credit counseling service.

First, find a reputable credit counseling service, and not one of the many scams out there. Avoid any ads promising a quick fix to your credit score. It simply isn't possible. Instead, look for a company accredited by Consumer Credit Counseling Services.

Next, schedule a meeting with your credit counselor. Provide them with all of the details of your debt. Don’t be tempted to leave anything out since they will more than likely need that information in order to create a workable re-payment schedule for you.

Now, the only thing left for you to do is sit back and allow your credit counselor to work for you. They will contact your lenders and inform them you are trying to create a plan which will allow you pay off your debts. These counselors coordinate a re-payment schedule that you can live with, sometimes getting you a lower interest rate.

Some credit counseling services offer a debt management program. Instead of having to keep up with all of the payments yourself, you have the option of submitting one lump sum payment to the credit counseling service and they do all of the work for you. One aspect to be aware of that sometimes credit counseling services miss their client’s payments. If that happens, your credit report will suffer for it. Be sure to check out the company thoroughly before signing up for their debt management program.