A less-than-ideal credit counselor or financial advisor can make your presently bad situation worse. Once you have $50,000 in credit card bills and a $25,000 income, you need some help. The plan to demand credit counseling as a prerequisite to bankruptcy is laudable in that a lot of people do not know how to handle money until it's too late. Financial advisors can provide help to debtors, and a good one can help you control your bills and give you some guidance that will prevent you from going through such severe problems down the road.

 Can you tell a honest financial advisor from a poor one? Below are some good things a counselor might suggest:

• Will the agency suggest a bankruptcy filing? Watch out for any counseling agency that states that they do not steer anyone to personal bankruptcy. Bankruptcy is a last resort, to be sure, but on occasion it's necessary.

• Set up a system of finances. Help you establish a strict set of money spending rules so that you do not continue to spend more than you have.
• Take a look at your options. Can you repay your way out of trouble? On occasion counseling agencies can negotiate with the credit card companies to set up somewhat more favorable terms. If you can't afford to repay, could you do it with a bit of debt restructuring?
• Some causes of money struggles might be a business gone bad, a drug problem, compulsive shopping, or merely spending beyond your means. Looking over your finances for the last several years to see where the problem started. The sources of your debt troubles need to be documented.
• These things take a period of time, and any counseling agency worth his salt who cares about actually helping you will take the time to figure out what's ideal for you.

What are the questionable things?

• Frequently, counselors don't forward payments in your name; they simply keep it. A few credit counselors will say to you, after meeting with you for just a few minutes, that they can help you by enrolling you in their agency's debt management plan. Debt management plans generally have to do with having you pay a monthly sum to the agency, which they, in turn, forward to your lenders or creditors after deducting their commissions.
• They only want to set up a payment plan. They appear to have little or no interest in your finances or in how you got into trouble.
• Watch out for advisors who persuade you to hold off paying your bills. Not paying your bills may make your lenders a bit more likely to negotiate your debt, it will put a big dent in your credit score and you don't want that.

A responsible firm can help you eliminate debt, while not-so-reputable firm can make your problems even worse. Do your research. Take some time and try to choose wisely.