Credit counseling is very straight-forward. As the name implies, it is counseling for those who are having problems managing their debts, which in turn result to a bad credit report. Unlike a regular counseling though where the one being counseled goes through a series of talks and discussions with her counselor, analyzing what it is that makes her upset, credit counseling involves more objectivity and less emotions. In credit counseling, the one being counseled and the counselor go through the credit reports together and come up with a plan on how to correct the bad credit reports. This will entail scrutiny of each expense and the ability of the person being counseled to pay her debts. One of the first steps done is to identify how much can be allotted every month for payment of credit bills, and how much should be paid. When a compromise is reached, a plan which details the monthly payments and schedules will be laid out, and consequently, progress will be monitored by both the counselor and the one being counseled. Credit counseling is literally a hand-holding process where the one in debt is being assisted by her counselor. It is understandable that she might not be able to look at the problem and might therefore be very emotional rather than factual about the problem at hand. At the end of the payment plan where all the debts are paid, there might even be a graduation of sorts for the successful ex-debtor. Credit counseling may just be the key to a debt-free life; start today by looking at the credit counseling groups near your place and go for a trial session. Just always remember to keep an open mind about the process and to divulge the necessary information needed from you so that the recovery plan is a well-customized one.