You are in a financial bind. You may have even missed a payment on one or more of your credit cards. What do you do for a living? Some people consider consumer credit counseling because they have heard that these services can help alleviate debt problems. But is that the best solution?

At one time, the consumer credit counseling (CCC) services industry was dominated by the National Foundation for Credit Counseling, whose nonprofit affiliates negotiated lower interest rates and payment plans for people who had fallen behind. . However, a surge in consumer debt in the 1990s spawned hundreds of competitors. Some do a good job of negotiating payment plans. Others charge huge up-front fees, pocketing much of the money that should go to paying off creditors.

Of those on debt repayment plans, said Lydia Sermons-Ward, a spokeswoman for the National Foundation for Credit Counseling, about half were expected to successfully complete their plans. The other half were expected to drop out, and some of them filed for bankruptcy.

There are several other problems with consumer credit counseling services. For example, every credit card company will report your delinquency even with CCC, and late payments will lower your credit scores. If you are seeing a “debt settlement” specialist, credit companies report that your accounts were settled for less and not paid as agreed. The worst problem is that many home equity lenders, mortgage brokers, and banks view consumer credit counseling as bankruptcy.

Another way to consolidate your bills is to refinance your high-interest credit cards and personal loans into a home equity loan (second mortgage). Home equity loans offer lower interest rates than what you pay with your credit cards, especially if you’re paying universal default rates. Gerri Detweiler, author of The Ultimate Credit Handbook, says if you’re one day late on any payment to any creditor, you could be subject to a default rate of up to 29.99 percent on many others.

Instead of taking these risks, you should take advantage of today’s lowest interest rate and get a home equity loan. Not only will you have peace of mind knowing your past due debts are paid off, but you’ll also enjoy lower monthly payments and up to 100% tax deduction on the interest you pay on your new second mortgage loan.