Don't fall prey to "credit repair" and "credit counseling" companies that want to take your money up front and make promises they can't deliver on. Check out any companies you think you might want to work with in depth and before you engage them. Non-profit organizations are out there to help, but unless you're careful it might be difficult to tell them apart from the sharks. Don't fall prey. Before engaging with an agency to solve your credit problems, consider:

* Many counseling agencies charge setup and monthly fees that can add up to between $250 and $5,000. If you repair your own credit, you can apply that money to your debts. Avoid any agency that charges a setup fee in excess of $50 or charges monthly program fees greater than $25.

* If you handle the payments yourself, you'll be able to monitor them and ensure that all transactions are actually made to the creditors.

* When you work with a counseling agency, you will be required to cancel all of your credit cards, and you won't be able to apply for any new credit until your debt is significantly reduced.

* Working with an agency shows up on your credit report and creditors may consider it when you apply for credit in the future.

* Will the agency manage ALL of your unsecured debts, even those for which the agency receives no compensation? Many agencies will only handle debts for creditors with whom they have a "fair share" compensation arrangement, leaving consumers to manage their other debts. Avoid agencies that will only handle a portion of your unsecured debts.

Using a credit-counseling service can eliminate much of the stress that comes from dealing with creditors and overdue bills. But debt-management does not erase your credit history, and creditors will continue to report information about accounts that are handled through a debt-management plan. In fact, creditors may report that an account is in financial counseling, or that other concessions have been made. Debt-management plans usually do not cover secured loans-loans backed by collateral. A car loan or a home mortgage is a secured loan because if payments are not made, the car or house can be repossessed. If you enter a debt-management plan, you must continue to make payments directly to these creditors.