Credit Counseling - Fact or Fiction?

I've been reading these boards awhile and done some independent investigation via word of mouth. I see many people here saying .. go to a credit counselor ... get on a plan ... it'll help you get out of debt .. then I ask around and hear horror stories from people who have done just that. So I will ask this.. fact or fiction about the following accounts.

One person said they went to credit counseling got on a "plan" and this is what happened. Yes they made one payment per month to the counselor, bills were paid. Rates were negotiated for interest to be reduced etc etc. BUT ... they were forced to close ALL credit cards except 1 and it could not be over a 1k credit line. Also, they were not allowed to engage in any other credit while under the plan. Nothing. And, thy were placed on a VERY strict budget, had to account monthly for all expenditures other than 10% for misc spending .. and were forbidden by the credit counseling agency to engage in frivolous spending like movies, bowling and other recreational activities. Also, they were forced to reduce their 401 k contributions and were made to stop participating in the company stock purchase plan.

So, for all of those out there saying, yes go to a credit counselor get out of debt .. I have a few questions ...

First, have you yourself actually engaged in a 'plan' with a credit counselor?

Second, did they impose these stringent rules on you?

Third, how did you manage to live and have no life for 3 to 5 years?

Thanks for your input.