my two cents! lol
 
both loni and matts posts are very informative.  the best advise is to become aware of your state laws concerning these matters.  it will vary so differently that you will be amazed.  such as here in texas, a debt that has been defaulted, with no judgement placed, with no payment of any sort made in four years, by law has to be removed from your buearu.  not automatic of course, you have to do the leg work.
 
this also applys if your defaulted loan is sold to another agency.  you prove the origination of the debt and the last payment.  if one payment is made after default the time counting begins at the last payment.  texas is a debtors haven..however there are many other great things in this state!! lol
 
for the uninformed or lazy, credit counselors and agencies appear a good thing.  having over 10 yrs in credit i've heard most all stories..mainly poor reports from these agencies.  payments never on time..or pay the agency and we will settle..after charge off(they don't tell you this!).  personally, i never work with agencies.
 
the hardest stories are the ones where bad things happen to good people.  bankrupty..tough road to hoe.  there is life after bankrupty and done correctly one can rebuild, improve their credit score well into the 600's in 3-4 yrs.
 
seek wisdom first..then knowledge will follow.