Debt Consolidation May Be Right for You

According to the complaint, the company claimed it would teach their clients how to manage their money for no upfront fee. AmeriDebt allegedly took their clients' first monthly payment as a fee instead of distributing it to creditors. By the time creditors got any type of payment, the client was already behind and at risk of having their credit damaged even more.

A disreputable counseling agency doesn't care if you're a good candidate or not. They use a high-pressure sales pitch rather than performing a true evaluation of your finances.

Also, these companies don't offer any type of relief. Your main debt could be a student loan, car note or a mortgage -- or a combo of the three -- none of which will be helped in a traditional credit-counseling program.

Check with the NFCC's Web site for approved credit counseling agencies.

Which is more important: your mortgage or your credit-card debt?

"Some of our clients are not only facing large credit-card debt, but are also having a tough time paying their mortgage," says Todd Marks, vice president of education at Consumer Credit Counseling Services in Dallas.

If the mortgage is behind, it's more important to keep it up to date because it's secured debt. Marks stresses the importance of communicating with your mortgage company about your situation. Ignoring letters and phone calls is not the way to avoid foreclosure.

"Not losing your house is a bigger concern," says Marks. "Once we've solved that issue, then we can talk about your credit."

For rates on loans, savings accounts and other financial instruments, visit BankingMyWay.com.