At end of every month, add all your deposits together and record that number in writing. Then you add up all your expenses. Subtract expenses from deposits and add that to your beginning balance (or last month’s balance). Check your statement to see what fees your bank charged and deduct that and Voila! You have an accurate account balance! Check your figures against your current statement and you might even want to take advantage of your bank’s telephone based customer service to confirm your numbers.

If you find no discrepancies, everything is really pretty close if not perfect and you’re done – until following month rolls around. Then spend a few minutes to do it again; you’ll be very glad you did… this is time well spent and you will reap rewards of developing discipline in your financial management methods and philosophy. No surprises in mail (returned checks), no bounce fees (to your bank and merchant), and most importantly—no damage to your credit rating.

We cannot emphasize importance of developing these kinds of good financial management habits.

Since there are literally thousands of these debt management companies out there, how does one go about choosing right one? In addition to using a non-profit agency, check factors like company’s Better Business Bureau report, are they accredited by a nationally recognized certifying agency such as ISO or COA, are their counselors certified as well, how long have they been in business and word of mouth recommendations. Another consideration is whether to use one of local community funded agencies or a private one. Although local agencies have advantage of being able to meet you face to face, due to limited budgets they can lack expertise of private companies as they are often staffed predominately by volunteers and don’t offer array of modern on-line and technological services which today’s consumers deserve and most large creditors demand in order to extend debtor their most favorable terms. Moreover, many locals encumber their clients with restrictive guidelines, going as far as limiting number of haircuts you can get or movies you can view.

If you have reached point where you are transferring balances just to keep afloat, making minimum payments and getting nowhere or getting harassed by creditors and view bankruptcy or settlements with your creditors as both far too damaging and morally unacceptable, you may want to consider contacting a reputable credit counseling/debt management organization. A good starting place besides BBB, would be one of debt management organizations that belong to American Association of Debt Management Organizations (AADMO). Most of all, don’t despair! Help is out there, just do your homework and choose wisely. With right agency to guide you combined with a true commitment to getting out of debt once and for all, there is indeed light at end of tunnel.