This is a very controversial topic. What should you have in mind when choosing a college major?

On the one hand, it’s very important to study something you enjoy. If you do that you will likely excel or at least do better, and then you can think about how to turn that degree into a career. If you love English or History, this thinking says you should pursue these majors.

On the other hand, particularly if you’re taking out big loans, to what extent is it important to study something that will lead to an actual career? Majors like engineering and accounting come to mind.

This article examines the topic from the perspective of turning your major into a career.

The student might say, “English,” “psychology,” “political science” or “engineering.”

And then, in my mind, after factoring in some other information, I say to myself “job” or “no job,” depending on the major.

An English major with no internships or any plan of what she might do with the major to earn a living? No job.

A political science major with no internships that could lead to a specific job opportunity? No job, I think.

Engineering major with three relevant internships in the engineering field? Ding. Ding. We have a winner. Job.

Read the entire article.

In one sense, it tilts too far to the career area. Yet it brings up an important point. Too many college students have no idea how they can earn a living after college, and WAY too many of them are taking out huge loans and then selecting majors that will make it very difficult for them to repay those loans whiles earning a living.

The bottom line is that all factors have to be considered. I think it’s important that college students pursue an education. College has to be much more than just a vocational program.

Yet you have to have common sense. Maybe you can get that English degree at a great public university instead of a small liberal arts school that costs $50,000 per year. This way if you decide that grad school makes sense for your career after you get that English or History degree, you’ll be in a much better position financially to make that decision.

Everyone needs an icon, an inspiration, someone who shows just how much can be down and how well. Not necessarily a role model, because the most successful people tend to have extremely negative qualities, but even the most evil character can teach some important lessons. For example: Darth Vader teaches you the value of presentation, black is always in fashion, and don’t jump uphill at a man with a light sabre, you idiot.

But since the dark lord of the Sith isn’t a great exemplar for business degree students (the profit/loss sheet on the Death Star is horrifying), we’ve looked for a more down to Earth villian. Italian ex-prime minister Silvio Berlusconi is a glory of capitalism. He is at least four different male fantasies crammed into one body. He’s made more money than Midas, twisted the law into shapes which would confuse Escher, and scored with more women than the entire population of several colleges.

What lessons can a business degree student take from this mastermind?

Networking

The single most important lesson in any business degree is networking, and Silvio masters this the same way Genghis Khan mastered making first impressions: way harder and better than anyone had ever dreamed possible, and than most people had even had even had nightmares about. Mr Berlusconi has a more powerful network than most Yakuza and uses it much more blatantly.

If you don’t make connections during your business degree it might as well be a piece of novelty toilet rule. Luckily modern technology means you can mingle without ever having to stand up, which is great, because when you work online you can take the time to craft the perfect image. Or, like Silvio, you can just own most of the TV stations and tell them to do it instead.

Think Big

No-one gets a business degree because they want to be a faithful secretary. It’s more a Gordon Gecko without the bad ending thing, power and riches and most importantly the feeling of doing something worthwhile with your time. This means you have to aim high and just keep climbing, an no-one solved his problems by aiming higher than Silvio. When his businesses were under legal investigation, he became the government and changed the rules. When Medusa cinemas were investigated for embezzling five million Euros, the judge decided that Silvio probably had nothing to do with it because the amount is too small. When you’re excused on the grounds that you couldn’t be bothered with a paltry seven digits, that’s the success of thinking big.

Understand The Rules

The most important thing in any project is a clear understanding of the rules. Some will say that this is to make sure you obey them, but come on, we’ve already mentioned Gordon Gecko and Silvio Berlusconi in this article. Sure, Berlusconi might have been finally forced to resign as prime minister, but he still has more money and sex than everyone you know put together.

The real reason you need to understand the rules is to succeed as quickly as possible. The hardest work in the world doesn’t necessarily, or often, lead to a the best reward. That’s why you’re studying a business degree instead of bomb disposal. A clear set of guidelines means clear targets and knowing exactly what you’re allowed – or able – to do to get what you want. When you study for a business degree you’re practicing dealing with the real world by getting ready to do the same. You have a clear set of tasks and courses to complete and, by far the most importantly, you have total command of your own time and resources to do so. That benefit cannot be overstated. So many jobs are based on sitting down and doing what you’re told – you want to be master of your own destiny. And like Silvio Berlusconi, you want to fill that destiny with money and fun.

We have some serious problems in the country surrounding college education. We have some of the best universities in the world, so the issue is not quality. The issue is price. The cost of college is soaring, and aggregate student debt will exceed $1 trillion!

President Obama is trying to address the student loan crisis with some sensible reforms, but the bigger long-term issue has to do with the cost of a college education.

Steven Goodman addresses the problem and proposes a solution.

Since loans now comprise 70% of financial aid packages, the growing tuition burden falls squarely on student-borrowers who may have saved for college but who still can’t meet the high cost of attendance. Two-thirds of American undergraduates are in debt. This year, student loan debt will grow to more than a trillion dollars, outpacing credit card debt for the first time. As hundreds of thousands of high school seniors prepare their college applications, and their parents compile documents required for financial aid, Congress needs to seriously consider legislation that will rein in future tuition increases.

There are many reasons for the dramatic rise in tuition, including demand for better student residences, cutting-edge laboratories, IT improvements, cuts in state subsidies and administrative growth. Regardless of which factors are most significant, the fact remains that there has simply not been enough external pressure to force universities to contain costs. Ironically, the accessibility of student loans, while admirable at first glance, has contributed to tuition growth. And while President Obama’s recent proposal to cap student loan repayments depending on income is a step in the right direction, it doesn’t address the bigger problem of runaway tuition in the first place.

This is where government needs to firmly step in. The federal government contributes billions of dollars to research and development on campus and allows universities to function as tax-exempt institutions. Self-policing of college costs has not worked; government needs to tie its support of higher education to college costs.

Read the entire article as it presents a sensible argument.

If you’re interested in an industry that’s rewarding, fun, and has an excellent job outlook, consider animal training. Employment in this career field is expected to grow 20 percent for the 2008-2018 decade, which is much faster than the average for all career fields. Not only this, but this is one of the top fields for individuals interested in freelancing or running their own business. Around 54 percent of animal trainers are self-employed.

So what do you have to do to become an animal trainer? Besides having a love for animals, according to the Bureau of Labor Statistics, you’ll need a high school diploma or GED equivalent for some jobs, and a bachelor’s degree for others. For example, if you’re interested in becoming a marine mammal trainer, a bachelor’s degree in marine biology, animal science, animal psychology, or biology may be required. Some jobs may also require an animal health technician degree.

Education plays an important role in how much you will earn as well as experience and certification. For example, dog trainers with certification by a professional association or a private vocational or state-approved trade school have the most opportunities and earn the highest salaries in this sector. The Bureau reports that overall, animal trainers earn an average salary of $27,270 per year. The middle 50 percent earned between $19,880 and $38,280 and the lowest 10 percent earned less than $16,700. The top 10 percent earned more than $51,400.

To find out information about animal training and certification, visit the Certification Council for Professional Dog Trainers (CCPDT) at www.ccpdt.org or the Bureau of Labor Statistics at www.bls.gov.

In its heyday, real estate was one of the most lucrative careers in the U.S. Top agents and brokers could easily make six (or even seven) figures a year doing what they loved—selling homes and commercial properties. Today, the market has obviously cooled, so it’s a bit tougher for agents and brokers to make a buck. However, according to financial analysts and the Bureau of Labor Statistics, the real estate industry is far from dead. In fact, because home prices and interest rates are so incredibly low, right now is the best time to buy. What this means is, although real estate agents and brokers may make less per sale than they’re used to, there are lots of sales to be made. So, if you want to break into the real estate industry and you’re willing to wait, say 3-5 years for the industry to really bounce back, you could end up making a very lucrative living down the line.

Employment in Real Estate at a Glance

According to the Bureau of Labor Statistics’ Occupational Outlook Handbook (2010-2011), employment of real estate brokers and agents  is expected to grow faster than average for the 2008-2018 decade. The industry is still very competitive, with well-established, more experienced brokers and agents leading the pack. Beginners do face an uphill battle, but can use the time to learn the ropes, establish themselves, and prepare for better days down the line. As such, the Bureau suggests that beginners have enough money to live for about 6 months or until commissions increase.

The Bureau of Labor Statistics (BLS) reports that employment of real estate brokers and sales agents (combined) is expected to grow 14 percent during the 2008-18 decade, which is faster than average for all occupations. Separately, employment of real estate agents is expected to grow 16 percent and real estate brokers is 9 percent, for an average of 14 percent overall.

Brokers and agents can expect job growth based on “a growing population, particularly young adults, who will be forming households in greater numbers.” These buyers will require the services of real estate agents and brokers to buy their homes. In addition, although some argue that renting rules right now, millions of people still believe in the American Dream. This means owning a home. According to BLS, home sales will be sparked by the continuing desire for people to own their own homes and their perception that real estate will be a good investment over the long run.

According BLS, in addition to job growth, agents just entering the field can expect a large number of job openings based on the need to replace workers who transfer to other occupations or leave the labor force. Real estate brokers and sales agents are older, on average, than most other workers, and many are expected to leave the occupation over the next decade.

Salaries for Real Estate Brokers and Agents

Today’s real estate industry is no place for part-timers. If you are ambitious, well trained,  enjoy selling, and have “extensive social and business connections” you will have the best chance of success. In addition, large urban areas and “rapidly growing communities” are the best places for real estate. Employment is heavily concentrated in these areas.

The Bureau reports average salaries for agents and brokers, but keep in mind that commissions are the main source of earnings in this industry and they vary greatly “according to whatever the agent and broker agree on, the type of property, and its value.” Region may play a role as well. While commissions can be all over the board, several years ago, the National Association of Realtors reported an average commission rate of 5.2 percent across the nation, with a range between 5 and 7 percent. Again, average salaries should be taken with a grain of salt. According to BLS:

The median annual wages, including commissions, of salaried real estate sales agents were $40,150 in May 2008. The middle 50 percent earned between $27,390 and $64,820 a year. The lowest 10 percent earned less than $21,120, and the highest 10 percent earned more than $101,860. Median annual wages, including commissions, of salaried real estate brokers were $57,500 in May 2008. The middle 50 percent earned between $36,420 and $93,970 a year.

Residential building construction offered the highest median average annual wages at $63,280 per year for real estate brokers and $49,620 per year for real estate agents.

Becoming a Real Estate Agent or Broker

Yes, to be a successful agent or broker, you have to have a pleasant personality and be trustworthy, mature, and enthusiastic about selling real estate, but in today’s competitive real estate industry, you need much, much more. A high school diploma is the minimum requirement to break into the industry, but many firms wont even look at an applicant that has less than a bachelor’s degree. Common degrees for this field include real estate, finance, law, business, economics, accounting, and marketing.

Whether you have a high school diploma or a bachelor’s degree, you must be licensed to become a real estate broker or agent. This means you’ll have to pass a written examination. Many states also require 30-90 hours of classroom instruction. Broker’s must take a more comprehensive exam and have between 60 and 90 hours of formal training, and typically 1-3 years of experience selling real estate. In some states, a bachelor’s degree in real estate may allow you to waive the experience requirements to become a licensed broker.

Because laws are always changing, among other things, many states require continuing education for license renewals. Brokers and agents must renew their licenses every 1-2 years, depending on state requirements. Contact your state real estate licensing commission for specific licensing requirements. Visit Nationalrealtorsdirectory.com for contact information for each state commission.

Not everyone can (or wants to) go to college. For those that don’t think college is for them, it’s perfectly ok to feel this way. The only issue at hand is, how do you earn a decent living in America today without a 4-year degree? You’ll have to keep an open mind and expect to earn a certificate, 2-year degree or go through a training program to get a job with a future and benefits. The list below is by no means complete, but it does give you an idea of the types of jobs that do not require a 4-year degree. Some of the most popular jobs include:

• -Armed Forces
• -Artist
• -Correctional Officers
• -Dental Assistants
• -Information Processing

Armed Forces
Did you know that there are literally thousands of positions in the military? Do you remember the draft? If not, here’s a refresher. Between 1948 and 1973, men could be drafted into the armed forces whether they wanted to go or not. These men were not all fighters. Some were carpenters, others were mechanics, some were dispatchers or typists while others worked in health care. If you had a special skill, chances are, you would not end up in combat because the armed forces could better utilize you in other areas. What does this mean for individuals considering entering the armed forces today? Your skills in any given area could lead to job stability (for 4 years or more), free housing, free health care, a salary, and if you do decide to go back to school, the military will foot the bill. Want more information? Go to www.army.mil or www.goarmy.com.

Artist
“Artist” is one of the broadest career fields in the world. Painters, musicians, writers, animators, filmmakers, sculptors, illustrators, cartoonists, sketch artists, and painting restorers are a part of this massive industry. This is one of the few industries where (in many cases) talent and artistic ability may very well outweigh education. If you have artistic ability and you would like to explore this career field further, visit the U.S. Department of Labor Bureau of Labor Statistics at  www.bls.gov to learn more about each individual area of the industry.

Correctional Officer
Yes, you will have to complete a training program. Yes, you should be physically fit. And yes, you should have patience and excellent communication skills. And no, you do not need a degree to become a correctional officer. Most correctional officers are employed in state and federal prisons and unfortunately, the nation’s prisons are overcrowded and in desperate need of skilled officers. This means, the field offers tremendous job growth and plenty of stability to boot. Correctional officers may earn anywhere from $33,600 per year up to $70,990 or more per year depending on rank and facility. Want to learn more about becoming a correctional officer? Visit the American Correctional Association at www.aca.org.

Dental Assistant
Certification or registration and completion of an accredited dental assistant program are required for entry into this field. In order to be accepted into a dental assistant program, you must have a high school diploma. Dental assistants are in high demand, so you can expect plenty of job opportunities in hospitals, private practices and offices, clinics, and schools. Dental assistants may also work in missions or “free” clinics supported by the U.S. government as well as other institutions such as correctional facilities.

Dental assistants also earn a pretty good salary to start. They earn an average salary $31,550 per year. The highest paid dental assistants average around $43,040 per year and the lowest paid dental assistants earn approximately $20,530 per year. For more information about dental assistants, visit the U.S. Department of Labor Bureau of Labor Statistics www.bls.gov to learn more about this career field.

Information Processing
Hey, if you like peck, peck, pecking away at your computer all day, why not get paid for it? Data entry and information processing workers make a pretty penny processing information for companies and organizations and some even work from home. The catch? You just have to be accurate, fast, and open to performing other clerical duties. Information processing workers earn anywhere from $28,000 per year up to $45,000 per year. Salaries might be higher or lower based on skills, geographic location, and industry. For more information about jobs in this industry visit www.usajobs.gov or the U.S. Department of Labor Bureau of Labor Statistics at www.bls.gov.

20 More Careers that don’t Require a 4-Year Degree

• -Bank Teller
• -Claims Adjuster
• -Computer Support Specialists
• -Cosmetologists
• -Customer Service Representative
• -Fire Fighter
• -Interviewers (solicit and verify info, for banks, government programs, and medical facilities)
• -Licensed Practical Nurse (LPN)
• -Medical Assistants
• -Payroll and Timekeeping Clerks
• -Personal and Home Care Aides
• -Pharmacy Technician
• -Postal Service Workers
• -Purchasing Manager
• -Radiologic Technologists and Technicians
• -Retail Salesperson
• -Science Technicians
• -Self-enrichment Teacher
• -Teacher Assistant
• -Telecommunications Equipment Installers and Repairers

One of the best ways to increase your marketability in tough economic times is to earn a degree. It’s true that a degree is not a guarantee that you will get the job you want and in the timeframe you want, but it is a fact that the unemployment rates for individuals without an education or less education are astronomical compared to unemployment rates for individuals with a degree—especially an advanced degree. As of February 2010, the unemployment rate for individuals with less than a high school diploma was 14.9 percent. For individuals with a high school diploma, the unemployment rate was 10.3 percent. The unemployment rate for individuals with some college, but no degree was 9.2 percent. The unemployment rate for:

• -Associate degree holders is 7 percent
• -Bachelor’s degree holders is 5.4 percent
• -Master’s degree holder’s is 4 percent
• -Professional degree holder’s is 2.4 percent
• -Doctoral degree holder’s is 1.9 percent

These figures combined and averaged bought the overall unemployment rate to 8.2 percent in 2010, according the Bureau of Labor Statistics. Not only does education protect you from unemployment, to a certain extent, it can also keep you out of the low-income bracket. Individuals with a degree earn double (and in some cases triple) the amount per week that  less educated workers do.  

The bottom line is—education pays, especially in a tough economy where competition is intense and employer’s are in a position to demand more from potential employees. As a result, adults are making the decision to return to school to earn an advanced degree, while others are enrolling in a variety of certificate programs, online degree programs, and more. Hundreds of colleges and universities have reported an increase in graduate school enrollment ranging from 7 to 15 percent, while online undergraduate degree programs have seen a significant increase over the past several years. Some colleges and universities report a 2.3 percent increase in undergraduate online enrollment while others report more than a 10 percent increase. 

The reasons for the increase in enrollment in graduate programs and online undergraduate degree programs go beyond America’s current economic crisis. Graduate programs have actually become more accessible through online offerings and international enrollment is up, which helps boost percentages.

The availability of graduate programs online appeals to many full-time working professionals that may also have major obligations at home. The same is true for online undergraduate programs. Overall, these online programs are also a way to conserve and save money. They’re just more affordable, as they eliminate the need to commute and spend.

About Online Undergraduate and Graduate Degree Programs

Most online undergraduate degree programs are an extension of an existing program at a brick and mortar college or university. Online graduate programs, especially MBA’s, are offered in abundance through most accredited colleges and universities. Although online degree programs have the same curricula and requirements as brick and mortar programs, in many cases (and contrary to popular belief) online degree programs are much more difficult.

To successfully complete an online program you must be at least somewhat computer savvy, mainly because you have to master the system you will be using in order to attend lectures, chat, submit papers, post to discussion areas, and more. Programs such as Blackboard and SOAR are common platforms. In addition, you must be extremely disciplined, organized, and focused. It’s a lot tougher when you don’t see your professor or interact with other students several times a week.

It’s up to the student to check in, read through all materials, jot down due dates, post to discussion boards, and contact the instructor if there are any issues. There is absolutely no hand holding in an online environment, but the good news is, in addition to earning an advanced degree, your organizational and problem-solving skills will soar.

Before you enroll in an online degree program, check to make sure the school is accredited. This means that the U.S. Department of Education must recognize the schools accreditation. You can check your school’s accreditation status by accessing the U.S. Department of Education Database of Accredited Postsecondary Institutions and Programs.

About Accreditation

Accreditation is a validation process by which institutions of higher education are evaluated against established standards to ensure a high level of educational quality. Accreditation is accomplished through a peer-review process in which faculty from accredited institutions help to conduct evaluations of either new non-accredited institutions or accredited institutions seeking renewal. The standards used to conduct these evaluations may vary but in general they assess the institution’s mission, goals and objectives, resources and resource allocation, student admission requirements, student support services, and the quality of the faculty and educational offerings.

Although graphic design jobs are available in these industries and many others, the biggest employers of graphic designers are marketing and advertising firms. Many graphic designers work on a contract basis. Currently, 25.6 percent of all graphic designers are self-employed.

Depending on factors from the size of the firm to region, graphic designers can earn anywhere from $42,000 per year on the low end to $95,000 or more on the high end. Entry-level graphic designers usually earn the lowest salaries, but in most cases, these designers advance rather quickly—usually within 1-3 years.

Graphic designers are in high demand today, but positions are very competitive. However, most graphic designers will agree that the right position is well worth the effort because not only are these creative positions exciting and rewarding, they are also the most stable positions in the creative sector. According to the Bureau of Labor Statistics, the job outlook for graphic designers is good, based on an impressive 13 percent increase in job growth between now and 2018.

So, what does it take to become a graphic designer? Employers prefer to hire graphic designers with at least an associate degree, but designers with a bachelor’s degree or higher will find more opportunities. They will receive higher starting salaries as well. Currently, more than 50 percent of all graphic designers have an associate degree or higher and more than 20 percent have some college experience, but no degree. More than 6 percent of all graphic designers have a master’s degree. 

It is important to note that education alone does not guarantee entry into or success in the field. Creativity, communication skills, and computer skills are a must. Web design and animation experience are also a must for most of the top firms.

Graphic designers come from many different educational backgrounds. Some have a degree in advertising or marketing communications while others may have a degree in fine art, multimedia arts, or even animation. If the focus is graphic design, students can expect to take classes such as flash animation, marketing design, website design, computer graphics, studio art, printing techniques, principles of design, commercial graphics production, history of graphic design and desktop publishing, to name a few.

In the U.S., there are more than 250 accredited postsecondary institutions with programs in art and design. Art & Design schools are twice as likely to offer a degree or certificate in graphic design, but many of the schools on the list below are traditional four-year colleges and universities. The list was complied by U.S. News and World Report. If you decide that the schools on the list aren’t for you or they are just too competitive, remember, many other schools offer graphic design programs. If you come across a school that you aren’t familiar with, just check to make sure the program is accredited by The National Association of Art and Design (NASAD) or other recognized accrediting agency. Visit Ed.gov for a list of recognized agencies.

America’s Best Graphic Design Programs 

• -Rhode Island School of Design, Providence, RI
• -Cranbrook Academy of Art, Bloomfield Hills, MI
• -Yale University, New Haven, CT
• -Virginia Commonwealth University, Richmond, VA
• -Carnegie Mellon University, Pittsburgh, PA
• -Maryland Institute College of Art, Baltimore, MD
• -School of Visual Arts, New York, NY
• -California Institute of the Arts, Valencia, CA
• -Pratt Institute, Brooklyn, NY
• -California College of the Arts, San Francisco, CA
• -School of the Art Institute of Chicago, Chicago, IL
• -New School–Parsons School of Design, New York, NY
• -Rochester Institute of Technology, Rochester, NY
• -University of Cincinnati, Cincinnati, OH
• -Minneapolis College of Art and Design, Minneapolis, MN

One of the first things to consider when creating a targeted list of colleges is budget. If you plan to finance your education through loans and/or income from a full or part-time job, this will help narrow your search significantly. Many colleges offer grants and scholarships, so be sure to include these types of schools on your your list—even if the tuition is beyond your budget. If you want to find out about grants and scholarship programs, visit CollegeScholarships.org. Just about every college website also lists grant, loan, and scholarship program information. Go to each website’s financial aid section for details.

After you have considered your budget, price, and the type of financial aid each college on your list offers, it’s time to think about location. Do you plan to live on campus? In state or out of state? Do you prefer to commute? Once you have decided on a location, this should eliminate a good number of schools on your list. At this point, comparing colleges should be somewhat easy, but an even shorter list will make comparing colleges even easier.

To trim the list to just a few, consider your career path. What do you plan to major in? Engineering? Literature? Architecture? Not all schools offer all programs, so this will help shorten your list to just a select few colleges. If you are unsure about your location, major, and price, you can still compare colleges using the comparison criteria below.

Comparing Colleges

Now that you have your shortlist ready, it’s time to compare colleges. A good way to keep things organized is to use the following comparison criteria:

-Admission Procedures and Requirements
-Campus Life
-Cost and Financial Aid
-Location
-Type of School

Admission Procedures and Requirements
The admission procedures and requirements for any given college discusses the percentage of students accepted. This will tell you how competitive the college is. You will also find out whether an interview and/or essay is required, and any SAT and ACT requirements. The school website will usually list the minimum acceptable SAT and ACT scores.

Campus Life
This information is also located on the school’s website and will tell you whether or not the school is in an urban, suburban, or rural setting. This section also includes enrollment figures, so you’ll know what to expect regarding class size, male/female ratio, etc.

Cost and Financial Aid
Cost and financial aid information covers tuition and fee information for both in-state and out-of-state students. It will also list costs for room and board or room only.

Location
Location is all you need to determine whether you’ll have to commute, live on campus, or relocate to another state.

Type of School
The type of school affects price, financial aid, grant offerings, scholarship programs, and more. For example, private colleges cost more than public colleges, and public colleges offer more breaks on tuition than private colleges do.

When comparing colleges, the best place to find the most reliable and up-to-date information about any given college is the school’s official website. For a directory of colleges visit AllCollege.org.

Credit counseling, also called “debt counseling,” is a service provided by organizations that offer professional counseling for consumers in need of assistance in the areas of debt repayment, debt management, and money management. Credit counseling is also a requirement that must be met prior to filing chapter 7 or chapter 13. The types of debt that credit counseling agencies may assist you with include credit cards, personal loans, home loans, car loans and student loans. Credit counseling agencies also assist with utility bill repayment and tax debt.

Getting Started with a Credit Counseling Agency

Credit counseling agencies will require certain documentation to begin the process, so it is important to organize your records before visiting an agency. The credit counseling agency will ask for credit card statements, copies of utility bills, mortgage payment statements or your rental amount/lease. The agency will also expect you to bring a record of spending or a budget that should  include household expenses and any miscellaneous expenses. This documentation is needed in order for the credit counselor to create a realistic budget and debt repayment plan.

Benefits of Credit Counseling

A major benefit to credit counseling is that the credit counselor will handle all lenders, collection agencies, and credit card companies for you. This helps to eliminate the stress associated with collection agency and creditor phone calls. Your credit counselor will negotiate a repayment plan that may significantly lower your monthly payments and interest rates.

You may opt to send monthly payments to the credit counseling agency (by check) or you may authorize a monthly electronic funds transfer from your bank account. Depending on the credit counseling agency, they may offer an option called “debt management system.” If you opt for a debt management system, you will pay the credit counseling agency a lump sum. Out of that lump sum, payments will be made on your behalf. This system can be used as a safeguard against skipped or late payments, which can save money on interest, fees, and any penalties associated with the debt.

An additional benefit to credit counseling is, it can educate you on how to better manage your finances and it will eventually help to minimize or prevent future debt.

Disadvantages of Credit Counseling and Protecting Yourself

While there are advantages to credit counseling, there are also disadvantages. Credit counseling could have a negative effect on your credit, initially. In some cases lenders, specifically mortgage lenders, may not want to extend credit to an individual that may be in the process of completing a credit counseling program. Fortunately, credit-counseling notations will be dropped from your credit report, roughly one month after the credit counseling program is complete.

Another disadvantage to credit counseling is the potential for fraud. This means that in some cases a credit counseling agency could turn out to be a scam. Look out for the following red flags:

• -Unrealistic promises (“settle for pennies,” or “this won’t affect your credit report”)
• -Big upfront fees (fees are typically $10-$15 U.S.)
• -Delayed or missing payments
• -No accreditation

To protect yourself against fraudulent credit counseling agencies, it’s best to make sure that the agency is approved by the approved by the U.S. Trustee Program of the United States Department of Justice. Locating an approved agency is simple. Just log onto www.usdoj.gov and follow these steps:

• -Under “Resources” click “DOJ Agencies”
• -Scroll down to “U.S. Trustees Program”
• -Under “Bankruptcy Reform” click “Credit Counseling & Debtor Education”
• -Under “Credit Counseling for Consumers” click “Approved Credit Counseling Agencies”

The search function allows the user to browse through approved agencies by state. Please follow the link below, which should take you directly to the search page http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm.