Does your heart skip when the phone rings? Are you afraid to open the mail and get another letter from a debt collector? If so, you are not alone. Many Americans are in debt up to their eyebrows and most don't even know what options are available to help them. They just struggle paycheck to paycheck, make minimum payments and watch with frustration as the interest rates eat all the payment and the debt seems to just grow.

Credit counseling is one option to help deal with debt problems, but before jumping the gun and signing up with any credit counseling firm do your homework.

With the Bankruptcy Abuse and Consumer Protection Act taking effect this month, consumers are hurrying to file for personal bankruptcy as soon as possible. The new law makes it harder, more expensive and more time consuming to file for bankruptcy, and increases the likelihood that debts will have to be repaid, rather than forgiven.
The new law requires lawyers, higher fees and strict proof of debts and income, as well as a means test to determine if a debtor may file under the more forgiving Chapter 7 or the tougher Chapter 13. Adding to the burden for filers is a new requirement that mandates all bankruptcy filers undergo credit counseling prior to filing.