FIGHT BACK : GUIDANCE FOR THOSE DIGGING THEMSELVES OUT OF DEBT.

Byline: David Horowitz 

Most of us learn to manage our personal finances the hard way. We go into debt, struggle our way out of it, and then try to figure out what happened. Along the way, some people find themselves in serious trouble, deep in debt, hounded by creditors, with no clue what to do next.

Credit-repair services prey upon such people. That sounds harsh, and I mean it to be. Commercial credit-repair services have a well-earned reputation for misrepresentation, unfulfilled promises and ripping off people who are already in desperate financial trouble.

But there is an easier way out of debt than paying someone for bad advice. It's the Consumer Credit Counseling Service, a nonprofit organization with 1,100 offices and branches nationwide. They are all overseen by the National Foundation for Consumer Credit, which was formed nearly 50 years ago by a group of bankers to help handle debt collections.

What the founders of CCCS quickly realized is that forcing debtors into bankruptcy doesn't do anyone any good. So they began counseling these people and helping them straighten out their finances, establish a budget, reinstate their credit and pay off their debts.

Counseling is always free. When people are completely unable to manage their own money, CCCS may offer to take over management of their household budget. There's a fee for that service, usually $15 to enroll and $1 to $20 per month to cover administrative expenses. But in most cases, free counseling, budgeting and advice on dealing with creditors and credit-reporting agencies is all the client needs to get his or her financial life back on track.

Most state and local CCCS offices sponsor public education programs with free seminars and workshops on topics like debt management, credit repair, buying a home, shopping for a mortgage loan and household budgeting.

CCCS counselors also work with business people who are frustrated by trying to collect bad debts. CCCS offers to intervene and work out a budget and payment plan with the customer. In some instances, CCCS actually will collect the payments from the debtor and pass them on to each creditor. This relieves the creditors of trying to collect on their overdue accounts, and it's less threatening to the customer. If the intervention is successful, CCCS then asks the creditor for a voluntary contribution.

The key here is that the CCCS is a nonprofit organization. Over the years, it has earned a reputation for honesty and fairness in dealing with both debtors and the business community.

You'll find the Consumer Credit Counseling Service listed under Credit and Debt Counseling Services in your telephone directory's yellow pages.

MEMO: David Horowitz's column appears on Saturdays.