On May 15 the Internal Revenue Service announced that it revoked tax-exempt status from dozens of "credit counseling" agencies. Why did the IRS need to step in and take action?

"Over a period of years, tax-exempt credit counseling became a big business dominated by bad actors," said IRS Commissioner Mark W. Everson. "Our examinations substantiated that these organizations have not been operating for the public good and don't deserve tax-exempt status. They have poisoned an entire sector of the charitable community." From http://www.irs.gov/newsroom/article/0,,id=156996,00.html

So, what does this mean for you the consumer, if you need help with credit card debt?

Should you avoid credit counseling entirely? Or should jump right in with one of the remaining companies, assuming they must be offering great service?

Actually, you should do what any consumer should always do when hiring any service company:

-- Shop around: compare fees, program details, and services.

-- Ask lots of questions: learn how the company will handle your account, when payments are due, how long it will take, etc.

-- Get everything in writing up-front: don't agree to anything without seeing it in writing, and don't sign anything without reading it carefully.

-- Check references and Better Business Bureau records: ask to speak with former customers, check out the company's Better Business Bureau rating at http://www.bbb.org/, search for the name of the company on Google or Yahoo and see if there are any comments from customers.

-- Trust your instincts: you can learn a lot just by asking questions and seeing how they are answered, and if a company doesn't "feel" right to you at this point, chances are it won't feel right once you sign up.

Credit counseling can be a valuable service, especially if you are struggling to just to make your credit card payments each month.

You can usually lower your monthly payments, reduce (and sometimes eliminate) your interest rate, combine your payments into one, and if you stick with it, get out of debt much faster.

In the end, you can save lots of money in interest, and get your finances back on track.

So don't let this recent news deter you from getting the help you need, improving your financial situation, and getting yourself completely out of debt!