• When attempting to consolidate debt payments into one repayment program, many consumers seek the assistance of a consumer credit counseling program. The program can work with creditors to establish lower payments and interest rates with a number of lenders, allowing the customer to make one monthly payment. There are a number of credit counseling companies, and asking the right questions before committing to one can help consumers understand exactly what the program will offer.
  
  

What Services Do You Offer?

• When considering credit counseling companies, it is important to know what services each company provides. Some will continue to work with lenders until the repayment terms are right for both the business and the customer, while others will simply set up one arrangement option. Ask what kinds of debt the company can work with, such as credit cards, medical bills and accounts that are in collection. Companies may also offer money management counseling services, allowing the customer to stay out of debt once the program is completed. Also, pay attention to whether the company will provide information about its services without asking for a lot of details about your situation -- a legitimate company should be able to discuss general options and services without a lot of information.
  
  

What Fees are Involved?

• After evaluating the services offered by a company, make sure to learn about the fees for the services provided. For example, ask if there is an enrollment fee and if any monthly maintenance fee exists. Also find out about what the new interest rates for each lender will be under the plan, and how much of each payment submitted to the company goes toward principal debt repayment. Customers should also inquire about how the payments will change after an account is paid off and whether or not the monthly payment amount will lower or if extra funds will be divided among creditors.
  
  

Will My Credit be Affected?

• To some lenders, using a credit counseling program can appear negative when examining a credit report, and may give the impression that the customer is unable to handle payments on his own. How the credit counseling reports on a report will vary by company; some will place a notation on the customer's credit report stating that he is in credit counseling, while others will not. However, provided that the company is submitting monthly payments on time and correctly, a customer should expect to see a slight increase in credit score, as a positive history is established and his debt-to-income ratio decreases as accounts are paid off.