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.

Yesterday I saw a segment on NBC's Today Show which reminded me of my college days when I contemplated debt consolidation... or credit counseling... or even bankruptcy. 

This was Ivan's question for money expert Jean Chatzky:

I am a 21-year-old college student with a lot of debt. I owe $15,000 and the credit card companies don't stop harassing me because I can't even pay the minimums. My income barely covers those minimum payments. I attempted to consolidate my credit but backed out last minute due to all the articles I read. Someone told me my best bet was to file for bankruptcy. Any advice?"
 

Hearing Ivan's situation made me flash back to my own college days when I, too, was in debt up to my ears.

Jean Chatzky's recommendation for Ivan was basically to try credit counseling. Here's why, plus what to look for when you're trying to find a reputable credit counseling company...

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. 

If this article about keeping track of unused gift cards has not motivated you to use your gift cards yet, here is some recent news that might...

Georgia ranked second this year in personal bankruptcies.

In the land of McMansions, gated communities, and Hummer-driving mama's, it's no wonder that the state's residents have serious financial problems.