There are many different meanings for the term consumer credit counseling.

In it’s simplest form, credit counselling is the process where you meet with a credit counselor and they give you advice on managing your money. They will help you deal with credit card debt, and they will explain how to improve your credit score on your credit report.

In addition, if you are planning to file for personal bankruptcy in the United States, they will conduct the mandatory credit counseling before filing bankruptcy, and the post bankruptcy filing credit counseling session. In Canada, the credit counsellor will conduct the credit counselling during the bankruptcy process.

Finally, a credit counselor will actually negotiate with your creditors on your behalf through a Debt Management Program where you make one payment each month to deal with your debts.

For more information, consult a local credit counselor.

When you attend your first credit counseling session, your credit counselor will explain the importance of your credit report.
Your credit report is a summary of your credit information, prepared by an independent credit reporting agency.  They get information about your past payment history, your current debt levels, your employment status, and various other personal information, and summarize it into a report that is then used by lenders to decide if they will lend you money.
A clean credit report, with no bad debts and late payments, is important, because it allows you to borrow money, and it will get you the best possible interest rates, and that is why a clean credit report is so important.
If your credit report is not in perfect shape, make an appointment with a credit counselor to review your options.