Look at your statements to realize that almost your entire minimum payment is eaten up by interest. These accounts took a long time to build up and will be very difficult to replace. The idea behind these programs is to negotiate with creditors for reduced interest rates and fees so you can repay debt and avoid bankruptcy. Arguably, if you are struggling to repay debt and avoid bankruptcy, you should get some benefit on your credit report over the person who files bankruptcy. Unfortunately, that is not always the case.
Many people find their credit report in the same or worse shape after credit counseling.
Thus, you should discuss this with whatever organization you choose, and get some assurances as to how participation affects your credit. If this is your situation, you should seek legal advice before deciding whether credit counseling or bankruptcy is your best option. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. All rights reserved.