The suggestions from Bankrate.com are good, with the exception of Panel # 11, which is in error. Debt settlement salespeople are not credit counselors. When you use a true non-profit credit counselor, you don't pay less than the full principal balance owed. Your bank generally reduces your interest from the penalty rate, perhaps as high as 29.9%, to something as low as 7 or 8%. They'll also waive any late or overlimit fees you may currently be paying. The accounts you enroll in a debt management plan are closed in return for these concessions from your bank, but you'll save tons in interest without destroying your credit. If you settle a debt for less than the principal balance, in most cases you'll be liable for taxes on the amount forgiven that exceeds $600, unless you were actually insolvent at the time.

I'm glad to hear that. How do you tell whether a counseling service is legit or not? (I think I need help from one.) I looked at debtadvice.org but some of the enterprises sound more like things that would advertise on late night TV. Thanks for this!