The six folks gathered around a conference table in North Highlands on Tuesday night were ready for change. But they weren't there to debate or celebrate the night's historic election.

Instead, they had more pressing concerns. One had co-signed on home loans for three friends who had fallen into foreclosure. Another was wrangling with creditors after her spouse died. A third was an out-of-work construction foreman who'd been jobless for 18 months and now was staring down $44,000 in vehicle loans and credit card charges.

Deep in debt, each had signed up for the mandatory counseling session required by the court for anyone contemplating a Chapter 7 or 13 bankruptcy. Together, the six are among hundreds who've been crowding into the offices statewide of ByDesign Financial Solutions, a nonprofit company established 40 years ago to provide low-cost help for those with debt, mortgage and money-management problems.

Over the last year, as the economy has stumbled, ByDesign's monthly counseling appointments have soared, more than doubling between January and October.

Consumers, particularly those facing foreclosure, are "worried, panicked and financially tapped out," said ByDesign spokeswoman Jennifer Root in Los Angeles. "They realize they … need to take action to get their situations under control."

Bankruptcy is considered the last resort. The first step: tightening up spending and paring down debt.

"Our main mission is education, to teach people how to look at their money differently," said Karen Metoyer, a ByDesign counselor who conducted Tuesday's session. "We want to show them that a budget is not a bad thing, that it's OK to save up for things you want."

A nonprofit focused on helping low- and moderate-income consumers, ByDesign keeps its rates affordable. An initial counseling session is free, whether it's by phone, online or at a sit-down session in one of the company's 11 offices between Redding and Los Angeles. Trained counselors look at monthly income and expenses, then suggest ways to straighten out the bumps. For some, that's all that's needed to get back on track.

The company also offers debt management service – where ByDesign collects a monthly sum that's dispersed among your creditors. That requires a $50 purchase of a CD or a three-book package that covers money management, identity theft and "Financial Firsts" for young people renting an apartment, buying a car, getting insurance, etc.

In addition to the monthly payment to creditors, consumers pay ByDesign an 8 percent fee, not to exceed $35 per month. Compare that with some debt relief firms that charge significantly more.

ByDesign also offers free Saturday workshops on personal finance and foreclosure. (The next quarterly workshop, "Alternatives to Foreclosure," is Saturday at ByDesign's office, 4636 Watt Ave. For details, see box.)

Although most attendees Tuesday night said they intended to file for bankruptcy, Metoyer walked them through the alternatives. First: Financially secure your home, whether it's a rental or a mortgaged residence. "A roof over your head is your biggest priority. It should be your No. 1 payment," Metoyer said.

She also discussed how to contact creditors – including the Internal Revenue Service, utility companies, credit card firms, landlords – to request reduced "hardship" payments or lower interest rates. She explained the mechanics of analyzing a household budget: where to cut back, what to sell to raise cash.

And she told them about debt settlement (offering a lump sum that's less than what's owed) vs. debt management plans (paying off creditors in installments through a financial services company).

In last week's column, we discussed the dangers of signing up with disreputable "debt relief" companies that leave consumers in worse financial shape than when they started.

But for those who do their homework, finding a reputable company can bring financial salvation.

Robert Cassinelli, a humanities professor at American River and Sacramento City colleges, said he faced $60,000 in credit card debt after his divorce in 2002.

Although an attorney advised filing for bankruptcy, the retired Air Force analyst was determined to avoid that route. Instead, Cassinelli made calls, got three bids, compared them and chose Houston-based Money Management International.

The company's credit counselors provided "strategies for spending," helped pare down his interest rates (which had ballooned to 21 percent on some credit cards) and took over making his payments. Every month, Cassinelli sent the company a cashier's check, which included the company's $20 monthly fee.

"They did not sugarcoat it," said the 66-year-old Cassinelli. The company was blunt that getting his debts paid off would not be easy or quick.

It took five years. "You can't imagine how good it felt to write that last check," he said. "It was like a 60,000-pound bear had been lifted off my back."

Today, Cassinelli says he has three credit cards that carry zero balances because he pays them off every month.

While Cassinelli freed himself from debt, hundreds more are seeking help. Given the treacherous economy, ByDesign doesn't expect its call volume to simmer down anytime soon.

"Californians are hurting financially more than they have been in years," said spokeswoman Root. But those who seek qualified help, she says, "feel a sense of relief when they learn what steps to take next."

For financial contact information, see the accompanying box.

Call The Bee's Claudia Buck, (916) 321-1968