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Does consolidated credit counseling services work?
September 16th, 2009 | 
Author: I just wanted to know before i got it, is it a fraud?, does it mess up your credit…is there anything else that works for credit card debt that’s not a fraud?
Consolidated Credit Counseling Services is a legitimate business. It’s a ISO 9001:2000 Registered Organization and has an A+ rating with the Better Business Bureau. According to their website, they interview you about your financial situation, do a budget analysis and then make recommendations.
There really isn’t a "one-size" fits all when it comes to solving debt issues. Debt management program might fit if you have high interest rates and are struggling with minimum payments and you haven’t gotten too far behind on your bills. Debt settlement might be an option if you’re more than 9 months behind in your bills, your creditors have charged off the accounts and debt collectors are knocking at your door. Bankruptcy might be an option if you’re so far in the hole that you can’t get out; however, do keep in mind that you’ll probably need a lawyer because it’s a complicated process.
Also, according to MyFICO.com, credit counseling doesn’t affect your credit score, so it shouldn’t hurt your credit to seek help from them. Included resources on Consolidated Credit (including website) and how to spot fraud.
Posted in Credit Card Debt Services
No… the only thing that works is paying them off.
Stop using the cards and make larger payments every month.
References :
Do you mean CCCS? Consumer Credit Counseling Services (CCCS) can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…
While an accredited credit counseling program like CCCS can be good you need to be aware that these programs are funded by the credit card industry and this can create an obvious conflict of interest in the advise they give you. I advise against using CCCS if you are drastically past due or have already complete defaulted on most of your credit cards….If this is the case then you are better off negotiating settlements directly with your creditors. You may be able to settle in the 25% – 50% range if your cards are already defaulted. If you settle, get all terms in writing. They will probably want a large lump sum rather than small payments over several years. CCCS will not negotiate settlements because they are funded by the credit card industry.
CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy.
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Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements…they don’t. Your creditors have the right to refuse settlements and take you to court.
References :
Consolidated Credit Counseling Services is a legitimate business. It’s a ISO 9001:2000 Registered Organization and has an A+ rating with the Better Business Bureau. According to their website, they interview you about your financial situation, do a budget analysis and then make recommendations.
There really isn’t a "one-size" fits all when it comes to solving debt issues. Debt management program might fit if you have high interest rates and are struggling with minimum payments and you haven’t gotten too far behind on your bills. Debt settlement might be an option if you’re more than 9 months behind in your bills, your creditors have charged off the accounts and debt collectors are knocking at your door. Bankruptcy might be an option if you’re so far in the hole that you can’t get out; however, do keep in mind that you’ll probably need a lawyer because it’s a complicated process.
Also, according to MyFICO.com, credit counseling doesn’t affect your credit score, so it shouldn’t hurt your credit to seek help from them. Included resources on Consolidated Credit (including website) and how to spot fraud.
References :
http://www.consolidatedcredit.org/
http://www.seflorida.bbb.org/Business-Report/Consolidated-Credit-Counseling-Services-Inc-4004191
http://www.customerlobby.com/reviews/302/consolidated-credit-counseling-services-inc/
http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm
I started using Consolidated Credit Counseling Services in January and so far it’s working for me. They consolidated my credit cards into one payment, which is lower than what I was paying before. Every month, I get statements from my credit card companies and I can see my balances going down. They’re good people, you should give them a call.
References :