Credit counselors help consumers manage -- and ultimately lower -- their debt.  They promise to negotiate with creditors, create payment plans, and lower the interest rates of those in debt.  A credit counselor's ultimate goal is to help you eliminate your debt. 
 
If you are in debt, a credit counselor will do 3 basic things for you:

1. Credit counselors help you consolidate several monthly payments from different accounts into one monthly payment.  The single payment is usually much less than the sum of the payments you were previously making.
 
2. Credit counselors get your creditors to reduce the interest rates on your credit accounts.  For example, a credit card with an interest rate of 30% may be reduced to as low as 5%. Or they may be able to eliminate interest payments altogether.  This will help you pay off debts faster.
 
3. Credit counselors help you bring delinquent accounts current.  They re-age the account by getting the company to list the account as current after you make several payments on time.

If you are deep in debt and your phone is ringing all day with calls from debt collectors and collection agencies, you are not alone. 

Thanks to the gas crisis, the housing crisis, and constantly rising food costs, a lot of people are dealing with debt collectors on a daily basis. 
 
If you're looking for some debt collection help, including tips for dealing with debt collectors who are harassing you, I've got some advice.  You see, I have been through all of this myself, so I know how to deal with recovering from debt and dealing with debt collectors.

Been there, done that!

In 2006, there were approximately 47 million uninsured Americans. 

Considering the significant number of lost jobs and the current housing crisis, you can imagine how much that number has grown. 

Among those who have to pay for health insurance on their own, it's not uncommon for the health insurance bill to be ranked very low on the list of monthly bills that have to be paid.  After all, it makes more sense to put the immediate need (to keep a roof over your head) first, as opposed to paying for unforeseen expenses (like hospital or doctor bills). 

If you're self-insured (which means you pay for health care expenses out of your own pocket as they arise; also called "self-pay"), or you're uninsured (which means you haven't gotten around to signing up with a health care provider and paying the bills yourself, rather than your employer paying for health insurance for you), then you are most likely under the assumption that you will be able to cover whatever health care costs might arise -- if and when they occur. 

Here are some reasons to think twice about this strategy...

I finally bundled my utilities.
 
I didn't  want to do it.  In fact, I fought it for many years. 

Much like my initial reaction to customer reward cards, I felt like there was something sinister about giving one company so much control.  After a year or so of not using consumer reward cards, I eventually gave in to the fact that using them -- in exchange for allowing stores to analyze my purchases -- would save me a great deal of money.   

Likewise, I have come to the realization that bundling my utilities would also save me a great deal of money. 

I have seen an increased number of bankruptcy solicitations in my mailbox.  Actually, it has increased from nothing -- because I've never seen such solicitations before. It makes me wonder if someone knows something, I don't know about my financial status. 

My best guess for why I'm receiving all of these solicitations is because there may have been an increase in the number of bankruptcies filed in my area recently.  I know for a fact that there are 3 foreclosed homes in my subdivision. 

For the last 50 years, it has been a given that Americans will have a telephone in their homes. 

However, with the popularity of cell phones and Internet sites that allow you to talk online, it is likely that home phones may go the way of street corner pay phones soon. 

When it comes right down to it, home phones are really no more necessary than pay phones. 

Plus, home phones can easily cost a family $100 or more a month!

The surest way to waste money is to pay your bills late.  It's like burning your money!

While it might seem easier said than done to pay your bills on time, the honest truth is that late fees are brutal.  Most companies can charge anywhere from $5 to $20 per month for late payments.  Credit cards charge even more than that when you pay late. 

For a person in the habit of paying final notices on bills, this can increase your monthly bills by several hundred dollars.  That can amount to a month's worth of groceries, a car payment, or a generous clothing budget. 

Catching up on your bills may not be easy -- especially if you are chronically behind -- but with a few months of sacrifice, you could get your payments on track and increase the amount of money you can spend on yourself. 

Here are 3 tips you can use to start paying your bills on time...