HONOLULU -- With the demise of Aloha Airlines and Molokai Ranch and other businesses. Some Hawaii residents are finding themselves in a very tough spot.

And more and more are turning to credit counselors for help.

Wendy Burkholder is the executive director of Consumer Credit Counseling Service said when a person comes to them for help. They first have to come up with a very detailed budget with net income, expenses and debt.

"They have to have a very clear picture of where they stand as an individual or as a family. They have to know exactly what's coming in, what's going out and basic living expenses and what they actually do have to address their debt with," Burkholder said.

If the budget shows they have repayment ability, but need help.

"Then that's when we'll step in with a debt management plan. We actually intervene between people and their creditor and negotiate a manageable plan for the client family that is still be acceptable to the creditor," Burkholder said.

In a debt management plan the client sends their money to the agency who then pays the creditors. Burkholder said it usually takes about four years to complete the program.

"Even if income has been reduced. It's about handling what little you have in the best manner possible for your family," Burkholder said.

And Wendy said about 40 percent of their clients end up filing for bankruptcy mainly because they sought help too late.

People considering a credit counseling agency should:

• Do your homework first
• Make sure it is accredited
• Check with the Better Business Bureau
• Choose an agency that provides face to face counseling
• And watch out for up front fees

Fees usually range from $20-30 a month and often times will be waived due to hardship.

If you have any questions about your credit or handling your money. The Smart Tips Hotline will be open Thursday from 5-8 p.m.