For many years, Clark has warned us about the phony credit counseling outfits that claim they will help wipe out your debt in a snap. The amazing thing is that one out of every 11 families in the country calls these phony companies because they are so far in debt. The sad thing is that most of the companies pretending to help you are really crooks. They use their non-profit status to try and convince people they are legit. But the IRS grants non-profit status to just about anyone; it’s an honor system. So, these companies set up shop and start stealing money from anyone and everyone. The IRS has taken away the non-profit status of 50 of these agencies so far, but that is just a drop in the bucket. Clark thinks these people should go to jail for stealing from people who are in such dire straits. The punishment should be much more severe. The encouraging news is that the Senate is in the midst hearings about this very subject. The Senate’s governmental affairs committee is hearing from former employees of these companies. They admitted they used fake names and ripped off customers whenever possible without providing any counseling. These companies get people to pay them a couple thousand dollars up front and then they run off with your money. Clark is glad the Senate is finally looking into this problem, and we’ll keep you posted on what happens. In the meantime, if you’re in over your head, you want to sit down with an expert at a real credit counseling service. If it’s a legitimate organization, the employees will go over all of your debts with you and try to get you on a budget to control your finances. If you’re past that point, they will negotiate with creditors on how much you can pay them and they’ll put you into a legitimate debt management plan. The exchange of money is maybe $50 at the most, and that’s only if you are put on a payment plan. The phony companies don’t offer any counseling or budget help at all, and they charge you thousands. The Web site to find legitimate companies is nfcc.org. It’s possible that there are legitimate companies out there that are not NFCC members, but be careful.