Counseling psychologists are in great demand because it is they who treat people suffering from various problems, including personal issues and career problems. They mainly attend those complaining of depression and stress, generally caused by excess work, financial problems and domestic concerns. Most counseling psychologists work in hospitals and healthcare centers, while a section of them are employed in government and private agencies. Counseling psychologists who set up their own private practice as well as those working in major cities earn more. On average, a counseling psychologist earns$60,000. This varies depending on the location, type and size of firm, education and experience.