Lie back on the couch, relax and breathe deeply. Now, imagine your debt flying out the window, fluttering away softly, like a butterfly. The promise of an easy debt solution is appealing, particularly when it comes from a credit counseling agency. Unfortunately, it's usually too good to be true. You can use creative visualization to heal your mind; but you'll need your smarts to heal an overactive wallet.

Tips for finding a counselor

Selecting a legitimate credit counselor requires you to be diligent about interviewing agencies and understanding contracts. The following tips can make the process as efficient and productive as possible.

• Contact membership-based organizations. Credit counselors belonging to the "National Foundation for Credit Counseling" and "Association of Independent Consumer Credit Counseling Agencies" are accredited for sound operating and counseling practices.
• Ask for free information. Reputable agencies will provide you with free, no-obligation information about their services.
• Check for complaints. Investigate all agencies that you're considering. Contact the Better Business Bureau and any local consumer protection agencies.
• Be realistic. Reputable agencies can negotiate with your creditors to lower interest rates and reduce charges, penalties and fees. They cannot make your debt disappear or change your credit history.
• Interview several prospects. Keep asking questions until you thoroughly understand the services provided and fees charged. Determine in advance what results you can expect and when you can expect them. You'll be working closely with your counselor, so be sure you feel completely comfortable on a personal level before you make your final choice.

Alternatively, you have the option of pursuing a debt consolidation strategy on your own. If you have equity in your home, you might consider using it to secure a debt consolidation loan, in the form of a home equity loan or cash-out mortgage refinance. The goal is to lower your monthly cash outlay by replacing several debt payments with just one. This strategy is only effective if you can eliminate unnecessary spending and stop using those credit cards entirely.

Alas, there's no magic wand to wave debt away. The closest thing is empowering yourself with the right information and then acting on it.