They tell you that you can get rid of your thousands of dollars in debt. Now that millions of Americans are flocking to credit counseling services, the potential for the debt trap to pull in consumers is rising. Thanks to pending legislation, an additional one million people may be required to see a debt counselor before filing for bankruptcy.

Many debt counseling services are financially troubled. At one time, banks and credit card companies paid 15% of the debt recovered. Now that banks are troubled, they are paying less- around 8%.

Not all agencies are troubled. Many have helped consumers. The best take active roles in helping their clients. They work out detailed individual plans using face-to-face meetings. They give free information through seminars on financial skills. Among agencies recognized with favorable reviews are Consumer Credit Counseling Service of Greater Washington (D.C.) and Consumer Credit Counseling Service of the Mississippi River Valley. But remember, even the best RARELY get deals better than a consumer can negotiate alone.

Thanks to Herb McCallum, former NCCC Board member, for bringing this information to our attention.