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You can find all the information you need to get you started in the Low Carb section of our forum, and no, high fat doesn't necessarily cause problems with cholesterol: I've eaten a low carb higher fat diet for just over 3 years now and my cholesterol levels have actually come down.
It's tragic the huge number of Type 2's who are sent down the wrong path by so called health professionals, and end up making the disease far worse than it should be.
There are numerous examples on these forums of people who have grabbed control of their Diabetes from the word go by ignoring the "guidelines"