In Part I of our Dolans' Debt Clinic, we talked about how to manage your debt most effectively. But you may be saying, "Hey Dolans! My debt is out of control. I need even more help." Or maybe you just need some more advanced strategies for climbing out of debt.

No matter what your situation, we recommend everybody read on to make sure you know all of the strategies you can use to get your debt under control.

Let's start with the big question: How do you know when your debt is out of control? There are several telltale signs:

1. When you have too many days left with no money at the end of the month.
2. When your account is down to a negative balance before your next payday.
3. When you are simply not able to pay your bills with current income.
4. When you don't know how much you owe.
5. When you are paying off (or simply paying down) one credit card bill by charging it to another card!

Let's start with the worst-case scenario. While following our advice will help you take control, if your debts are so large they've seized control of you then we recommend you seek help from a consumer credit-counseling program, which will help you work out a repayment plan and act as intermediary between you and the credit card companies and collection agencies. Be aware that working with a credit-counseling program is one more piece of data that could wind up on your credit report, but it will also show that you're making a valiant effort to clean up your debts.

Dolan Smart Money Move : We get a lot of questions from people about for-profit credit-counseling centers. Beware! Some of these places will tell you, "For $2,500 we can get all the bad information off your credit report." A lot of people get scammed this way. You should know that even some of these legitimate counseling groups are actually funded by the credit card companies! Talk about the fox guarding the chicken coop! They may advise against filing for bankruptcy, even if that could be your best option, because it isn't in their best interest.

We don't want you getting scammed, so here are some warnings from the Federal Trade Commission. Don't trust a company that promises to restore your credit and then tells you:

• "Don't worry; we'll fix it in no time." There is no quick fix for heavy debts. You need to pay your bills on time and stick to a budget (we prefer to call it a "success plan"!) in your spending.
• "Pay us $XX now and we'll get back to you." Federal law prohibits credit counselors from collecting money before they perform services.
• "We can get you a new credit identity." It is flat-out illegal to make this claim, and illegal for you to change your identity with a new credit or tax ID or a new Social Security number.
• "We can remove all the bad news from your credit report." Wrong! They can't take information about bankruptcies, judgments, tax liens, or delinquencies off your report. Anyone who claims to be able to do so is lying.

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