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Consumer Credit Counselling Services PDF Print E-mail
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Saturday, 19 July 2008 11:16
What Consumer Credit Counseling Services (CCCS) does is negotiate your debts and payments with your creditors, reducing some of them and getting creditors to lower the minimum monthly payment in other cases. CCCS generally is not recommended unless you are deeply in debt. Although CCCS may be helpful in pulling you out of debt as painlessly as possible, it can have the bad side effect of ruining your credit.
Here’s how CCCS works:
  • Consumer Credit Counseling Services talks to you to determine how much you can afford to pay each month.
  • They negotiate with your creditors, getting them to accept lower monthly payments until all your debts are paid.
  • You must sign an agreement to not obtain any new debt until the current debt is paid off.
  • You make a single monthly payment to CCCS who pays your creditors.

CCCS usually does not get the creditor to agree to report you as paying on time, and even if they do, they do not get this agreement in enforceable form (in writing). If your creditors report you late, your credit report may show 30-day, 60- day, and 90-day+ lates, essentially ruining your credit. Although you will have a good reason why your credit rating looks this way, it will fall on deaf ears.
Last Updated ( Wednesday, 23 July 2008 06:04 )
 

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