It seems as though television companies are filling every possible vacancy with debt management and consolidation commercials as a result of this recession. They know that society is struggling financially to make it through. These companies want you to believe there is no way out. Some encourage bankruptcy right off the bat. But beware, just as there are predators in lending, they lurk among debt management and consolidation companies as well. Not to say they aren't legitimate, just know what you are getting yourself into. Do your research as I have.
Many years ago, after going through a divorce, I found myself seriously in debt as a result of terrible, unnecessary spending habits. I wasn't purchasing big ticket items like televisions, computers, etc. I was buying "stuff"; clothes, shoes, things for the kids. All unnecessary items that I could have gone without. Nonetheless, there I stood owing money that I did not have or the means to pay it back. I knew better as the job I had just left was teaching military service members financial counseling; how to save money during their short time prior to exiting the military. I taught these financial briefings almost weekly and did not apply them to my own personal life, then found myself in a world of hurt; all self inflicted.
No longer a part of the military community and without a job, I recalled a civilian organization that I mentioned in my briefings and contacted them for an appointment. It was the best thing I have ever done. Now, many years later, I have found myself in a similar situation as a result of my unemployment hanging in limbo for six months. I am excited to say that this time I am actually able to manage my debt without the help of that organization. It is important to me, that I share this with you. No matter where you are with your own finances, there can be a light at the end of the tunnel for you as well; if you take action. Having the knowledge of its existence saved me. Pride does not matter when you really need help. You're not "broke enough" if your pride is still standing in the way and you continue to get deeper into debt. 
Consumer Credit Counseling Services (CCCS) is a nationwide non-profit organization offering financial advise and education, debt management plans and bankruptcy counseling. A majority of their income is derived from creditors; allowing their services to be more affordable. In a nut shell, their fees are generally ten percent of whatever they determine your monthly fee to them is. Say it's a hundred dollars a month to cover your debts, your fee taken from that would be ten dollars. They sit down with you and determine your monthly obligations verses your contractual obligations such as a mortgage, car loan, credit cards, etc. While they work with creditors to reduce interest, finance charges and eliminate those annoying phone calls, the debt remains yours. You are responsible for the debt owed; they simply help create a debt management plan that is "do-able"; realistic. If and when your income increases and you are able to pay more, you're on your way to financial freedom much sooner. It usually takes about thirty days for the phone calls from creditors to stop and what a relief to feel that you are still in control. Provided any of your debt is credit cards, you are required to turn over those cards and CCCS will close those accounts upon the pay off. This is where most people cannot part with the one thing that has gotten them in a such a mess. It's a vicious cycle. Chances are your credit has already been affected, so closing such accounts is not going to matter at this point. The nice thing about using such an organization is having someone who is neutral to bounce things off of. Be honest about your debt and lay it all out, no matter how small. Should you choose to fight your way out of debt on your own, there are volumes of self help books and online sites available that will guide you. However, depending on your financial situation, you need to consider one thing. If you haven't been disciplined enough to manage your finances up to this point, will you be disciplined enough to follow a "self created" budget without guidance? Chances are, you will find some way to manipulate the situation to your liking and remain in a financial crisis.
While the goal is to get out of debt and never return to the same situation, the reality is you more than likely will at some point. Hopefully not to the extreme as it is right now, but you will be better prepared. We all have life events that happen and call for money that we do not have on hand; funerals; doctor's visits for those with no insurance; the unexpected. This is where self help books become your best tool kit. Once you've been taught the discipline you needed through the guidance of a professional, the foundation is set. Use the tools from these books to build your confidence and the ability to recognize when things are getting out of hand.
Financial guru Suze Orman says it best in her books the "Young, Fabulous & Broke" and "Women and Money" where she talks about "good debt" verses "bad debt". She describes "good debt" as assets such as a home, vehicle loan, etc. and "bad debt" as things we "want". My debt sixteen years ago was definitely bad debt; nothing more than "wants". Today, it is what I consider good debt although there are no assets to show. It was a matter of covering additional monthly expenditures that my unemployment was not covering; an emergency resource if you will. Her books provide a wealth of knowledge and are written in layman's terms for anyone making an effort to pull themselves out of debt and move forward in their finances. There is also an online site called Mvelopes.com; if you are disciplined enough. It is an awesome site that offers several money management tools to help you keep track of your spending and ways to create a budget that is realistic.
Getting on a good track, being accountable and becoming disciplined will be rewarding, I promise. I am happy to say that of the three credit cards I currently have, one will paid off next week, the second within two months and the third in six months. If I had utilized CCCS this time, I would not have the third one paid off until 2014. In an effort to be financially free of unnecessary debt sooner and to maintain my good credit score, I made the choice to discipline myself to a fairly strict budget for the next six months. I managed to pay the minimum payment on time every month during my lowest time with unemployment and was never late (something I learned from Suze Orman), so my situation is a little different this time around. What a wonderful feeling it will be to simply get back to only monthly obligations. The debt management plan that I had with Consumer Credit Counseling Services years ago taught me discipline that was desperately needed and the books gave me the money management tools for the future.
