Consumer Credit Counseling info...informations,news,articles,links to useful forums about CCCS...

Article : Debt Consolidation and Consumer Credit Counseling

2008-07-19T07:31:00.000-07:00

By Marjorie Salada

source : http://ezinearticles.com/?Debt-Consolidation-and-Consumer-Credit-Counseling&id=1289132

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Debt consolidation and consumer credit counseling are both ways of eliminating your debt. Consumer credit counseling is actually a form of debt consolidation, but it does not involve a loan. Sometimes the term debt consolidation can also refer to a home equity loan that is used to pay off debt. Debt consolidation refers to a solution that consolidates your debts and allows you to make one monthly payment to cover all your debts.

A debt consolidation loan is a viable means of paying off your debt, but I do not recommend it. If you have credit card debt or are enrolled in credit counseling and do nothing, your creditors can report you to the credit bureau and make numerous collection calls, but that is about it. However, if you have a debt consolidation loan and cannot make the payments, the consequences are much more severe. Your creditor can start foreclosure proceedings on your home. Many people have debt consolidation loans, but there are better ways.

Consumer credit counseling is a form of debt consolidation, but it does not require a loan. Debt counseling is a way for people to get out of debt without incurring additional debt. A debt management agency can help you get on a plan that will help you have your unsecured debts paid off in five years or less. If it takes longer than five years, you may want to consider other debt relief options.

Your credit counselor will interact with you lenders and they will no longer be allowed to make collections calls to you as long as you follow the terms of the plan. There are many benefits to debt consolidation with a debt service. Here are just a few of the benefits you will see by consolidating with a credit counseling agency:

*Reduced and possibly eliminated interest rates
*One convenient payment each month
*No more collection calls
*No more fees
*Budgeting and financial education resources

The biggest part of being successful with a debt management plan is not getting into something that you don't think you can manage. If you are given a quote that you don't think you can handle, you are setting yourself up for failure if you accept the proposal.

Debt relief is something you need to go into with an open mind and the attitude that you are going to do what it takes to become debt free. The most difficult part of getting out of debt is recognizing that there is a problem and asking for the necessary debt help.

Article : Is a Credit Counseling Service a Good Option to Get Out of Debt?

2008-07-06T03:12:00.000-07:00

By Miriam Caldwell, About.com

If you are working towards getting out of debt you may be considering using a credit counseling service to help you reach your goal. You need to be wary of credit counseling services. They may seem an easy way to solve all of your debt problems, but often they are too good to be true.

1. What Will a Credit Counseling Service Do?

When you visit a credit counseling service, a counselor will sit down with you and help you set up a budget. This will require that you cut your expenses. Next they will determine a set amount that you will pay them every month. Often they will do this with an automatic payment. After you pay this amount they will then pay each of your debts individually. ...

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Article : Consumer Credit Counseling Services

2008-04-02T07:16:00.000-07:00

By Neil D'silva

What are the functions of Consumer Credit Counseling Services?

Contrary to what most people think, or want to think, about consumer credit counseling services, these services are not just about mere counseling for your financial credit problems. They are much more than that. The following is a list of all the services that the consumer credit counselors will provide to you:-

Of course, the first service is counseling itself. They will listen to your financial problem carefully. When you are speaking all these things out, you are yourself realizing the extent of the problem you are in. Anyways, the credit counseling services will try their best to counsel you verbally about your financial problems at the outset.
The next step is to train you in financial management. The credit counseling services will sit with you and discuss how you can better manage your finances. They will prepare a budget for you and your family so that you can make the best use o the income you are getting and efficiently manage the payments you need to make.
Most importantly, they will tell you of schemes in detail, such as the debt consolidating and debt refinancing plans by which you can solve all your credit problems. Debt consolidation means clumping all your individuals into a single loan which you can pay with greater ease. While, debt refinancing means getting your existing loan renewed through another lender at a cheaper rate of interest. The consumer credit counseling service will coach you in these plans, and will help you implement them too.

Why choose Consumer Credit Counseling Services?

It is very difficult for people who are deep in debt to manage their finances properly. Sometimes, these people might have the financial capacity to come out of their debts, but because they are not managing their loans properly, they are not able to solve the situation. This is where the consumer credit counseling services help. They will actually sit and discuss the problem with you and will tell you of ways by which you can be debt-free.

Most people when they approach consumer credit counseling services, they do not even know what debt consolidation or debt refinancing means. Even if they know about them, they have most likely a very hazy idea about it. It is the job of the counselor to make people aware of these viable solutions to their problems.

Credit counselors also become important when a person is to file for bankruptcy. In fact, the American law has made it compulsory for people to enroll into the programs of the credit counselors before their bankruptcy so that they can seek knowledge of how to avoid this sticky scenario the next time round.

Thus the consumer credit counseling services are not all out there to make a fast buck. Most of them have genuine intentions and a noble way of doing business.

Which Consumer Credit Counseling Services to avoid?

Many credit counseling services are nothing but scams, and you need to avoid them like the plague. Avoid all companies that are not registered with the government. Their programs have no value at all in the courts. Do not go for any consumer credit counseling services who want to push a particular policy of theirs. You must make sure that they are understanding your problem first, and working with you to find a solution for it.

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source : http://ezinearticles.com/?Consumer-Credit-Counseling-Services&id=1009856

Article : Avoid Credit Counseling Scams

2008-04-02T07:12:00.000-07:00

Avoid getting caught in Credit Counseling Scams! Yes, hundreds of consumers a year get sucked into these counseling scams for improving your credit. But watch out for them. Not all of them are really going to help you. Most just want your money. There are several ways you can be sure that it's the real thing and not a scam....

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News : Consumer Credit Counseling Service: Atlantans hammered by rising gas costs

2008-03-02T15:30:00.000-08:00

Thursday, February 14, 2008
Atlanta Business Chronicle

Customers of Consumer Credit Counseling Service (CCCS) of Greater Atlanta spent 9 percent more on gas and food in January 2008, the nonprofit credit counseling agency reported Thursday.

Metro Atlantans spent an average of $531 on gas and food in January, compared with an average of $486 in January 2007. The $531 accounted for about 30 percent of their monthly living expenses of $1,774, CCCS said. ...read all...

News : CSC Teams With HOPE NOW Alliance Members to Provide Consumer Credit Counseling Portal

2008-03-02T15:28:00.000-08:00

February 14, 2008 9:00 AM ET

Extension to CSC's EarlyResolution Software as a Service Aims to Reduce Mortgage Foreclosures

EL SEGUNDO, Calif., Feb. 14 /PRNewswire-FirstCall/ -- Computer Sciences Corporation CSC today announced that it has teamed with HOPE NOW Alliance members Wells Fargo Home Mortgage, Bank of America, PMI Mortgage Insurance Co. and Consumer Credit Counseling Service (CCCS) of Greater Atlanta Inc., to develop CSC's EarlyResolution Counseling Portal (ERCP), a national technology service designed to help nonprofit credit counselors reduce mortgage foreclosures. In January, CSC delivered ERCP to Wells Fargo, Bank of America, Countrywide and CCCS for pilot testing. The service will be generally available later this month. ...read all...

Article : Powerful debt pay-down strategies

2008-03-02T15:26:00.000-08:00

Friday February 29, 6:00 am ET
Jennifer Maciejewski

Is debt overwhelming your finances? If you have nightmarish visions of being surrounded by creditors, it's time to put down all credit cards, tighten the proverbial belt and start living not only within your means, but under them until you've paid back what you owe. ...read all...

News : Consumer Credit Counseling Service offers financial tips

2008-02-12T14:14:00.000-08:00

February 4, 2008
SPECIAL TO THE BEACON NEWS

A few simple steps can make a dramatic difference in one's financial life, and there's no better time than now to get pointed in the right direction. Consumer Credit Counseling Service (CCCS) recommends that consumers review where they are in order to determine where they're headed, and encourages them to consider implementing the following tips. .. read all ..

News : Consumer Credit Counseling Service and MassMutual Team Up to Enable Families to Apply...

2008-02-12T14:06:00.000-08:00

Wed Jan 9, 2008

'Consumer Credit Counseling Service and MassMutual Team Up to Enable Families
to Apply For Free Life Insurance
LifeBridge(sm) Program Puts Money In Trust to Pay for Children's Educational
Expenses

CAMARILLO, Calif., Jan. 9 /PRNewswire/ -- Consumer Credit Counseling
Service (CCCS) announced today it is teaming up with MassMutual Financial
Group to offer eligible families free $50,000 term life insurance policies
under MassMutual's LifeBridge(sm) Free Life Insurance Program. If an insured
parent or legal guardian passes away during the 10-year term of the policy,
Massachusetts Mutual Life Insurance Company (MassMutual) will put $50,000 in
trust to pay solely for the educational expenses of dependent children' .. read all ..

News : Over the Limit

2008-02-12T14:04:00.000-08:00

February 7, 2008 by Mara Der Hovanesian, Christopher Palmeri, Nanette Byrnes and Jessica Silver-Greenberg

'Americans accustomed to cheap and easy money—and an economy geared to their free-spending ways—face a harsh new reality as banks raise rates and lower ceilings on credit cards' ... read all..

News : Consumer credit growth slows

2008-02-12T14:02:00.000-08:00

By MARTIN CRUTSINGER, AP Economics Writer Thu Feb 7

'WASHINGTON - Consumers increased their borrowing in December at the slowest pace in eight months, additional evidence that economic activity was slowing significantly at the end of last year. For all of 2007, consumer credit rose at the fastest clip in three years.' ...read all ..

Link to a forum : Dealing with Consumer Credit Counselling Service

2008-01-04T05:35:00.000-08:00

12-08-2006, (3 posts)
First comment from this forum :

"I have an interview coming up with CCCS and need some general advice before I go ahead please.

My situatuation is I have retrained to another career (Aviation) and I am
applying like crazy to companies for positions but no success yet.

Meanwhile I am struggling to keep my head above water paying off all the debt I have built up and am trying to avoid any defaults CCJ's etc, so in summary below is what I owe and how things have gone thus far.

Currently owe

Egg CCard 5000
Egg Money 5000
N Rock 3000
Cahoot 9000
YB Visa 4000
GM Card 4000
Halifax Loan 3500
Capital Bank13500

Total 47000

When I get sorted with a good job I wish to move house because our family is expanding so we need more room, below then are a list of questions relating to what consequences will occur due to dealing with CCCS other than
some peace of ming (Hopefully)

1. Credit rating already knackered will it get worse by dealing with CCCS
2. Don't have any defaults, CCJ's or anything but it's only a matter of time
as more going out than coming in.
3. If I get a plan going with CCCS will it affect me wanting to move house
say in the next 1 to 2 years with regard to getting a mortgage.
4. What options might CCCS offer me.

As an aside Northern Rock are trying to stiff me for an extra £30 admin charge
due to an unpaid DD below is a timeline of events, what can I reasonably ask them to do, and have they broken any rules by trying to collect and then subsequently re-charge me for something I have already paid.

20 July DD for £238 returned unpaid by my Bank
21 July Got letter informing me of unpaid DD which would be collected
10 days after letter.
23 July paid the £238 by Debit card to try and avoid late payment charge
25 July got a letter saying charged £30 for unpaid DD
31 July then they tried to take another payment by DD and returned
unpaid
09 Aug got another letter saying DD returned unpaid £30 admin

I wasn't in arrears so no reason to take 2 DD's so computer/operator has
dropped a clanger, what can I get back, have they flauted any law or guideline and if so between getting my £30 back and asking for the loan to be settled what might be reasonable.

I thank all for any help and advice that is given.

Regards Geoff."

see this forum at : http://forums.moneysavingexpert.com/showthread.html?t=243374#post2675932

Link to a forum : Considering going to Consumer Credit Counselling...

2008-01-04T05:33:00.000-08:00

Thu Aug 03, 2006(8 posts)
First comment from this forum :

"I would like to know how it will affect my credit? Does anyone have any experiences good or bad with CCC? I also found Clear Debt Solutions online and was curious about them."

see this forum at : http://creditcardperks.webgroups.biz/phpBB2/viewtopic.php?t=9965#54113

Link to a forum : Bankruptcy? debt consolidation service? Consumer Credit Counceling Serv?

2007-12-24T07:12:00.001-08:00

2006
First comment from this forum :

"I'm trying to not file for bankruptcy. Overdraft protection is the only thing keeping me from making late or no payments at all on my bills and that's nearly maxed out. I'm in huge cc debt, apppr 35k, and bankruptcy seems like the easiest way out and to feel like a person again. I want to try and fight my way out of this mess if I can. I would like to see if a service can help me but know there's a lot of scams out there. Is CCCS a debt consolidation service like Debtco or are they two different things? How do I go about finding a fair and reputable service? What types of questions should I ask? I'm near Portland, OR. Anyone have a suggestion of where to find a good service or lawyer (if bnkrp is in the future)?

Also, is a charge off really that much better or different than filing for bankruptcy? What's the difference when it comes to your credit report and how it is viewed by potential lenders?"

see this forum at : http://answers.yahoo.com/question/?qid=1006021704914

Link to a forum : Does Credit Counseling WorK?

2007-12-11T15:37:00.000-08:00

First comment from this forum :

07-17-2007 (4 posts)
"I'm going to go behind on my bills but Visa and mastercard don't seem to care. I've thought about going bankrupt but is credit counseling something to consider even if I can't afford my bills? "

see this forum at : http://myvesta.org/debt_forum/does-credit-counseling-work-t34.html

Link to a forum : Consumer Credit Counseling, Has anyone tried?

2007-12-05T14:53:00.000-08:00

First comment from this forum :

Oct 28 2004 (10 posts)
" I am considering a Consumer Credit Counseling service.

Anyone out there tried one or recommend one or wish to comment on their experiences?

If it's too personal, I understand. PM's are welcome."

see this forum at : http://www.paulding.com/forum/index.php?showtopic=13510

Below are the most searched keywords,about 'consumer credit counseling',in the internet (datas of October 2007)

2007-11-25T07:28:00.000-08:00

Search

Word

35228

consumer credit counseling

12750

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1835

consolidation consumer counseling credit debt services

1540

free consumer credit counseling

1290

consumer counseling credit debt management

903

consumer credit counseling services cccs

856

consumer credit counseling arizona

750

consumer credit counseling debt consolidation

716

american consumer credit counseling

684

christian consumer credit counseling

590

consumer credit counseling agency

476

consumer credit counseling service inc

source : http://www.zirve100.net/incele.php

Link to a forum : Is it a good idea to use consumer credit counseling, to stop foreclosure?

2007-11-17T03:32:00.000-08:00

First comment from this forum :

"is consumer credit counseling going to help us out of foreclosure or make our situation worse?"

see this forum at : http://malaysia.answers.yahoo.com/question/index?qid=20060711105026AA1UFhV

Link to a forum : Advice on consumer credit counseling?

2007-11-10T13:03:00.000-08:00

First comment from this forum :

"My debt payments are straining my income to the breaking point. I do not want to declare bankruptcy, I am not able to secure any loans, and do not have house equity to cover my debts.

The good news is I have a steady job and brighter prospects for the future.

I have been advised to work with CCCS -- Consumer Credit Counseling Services -- to set up a payment plan for my debts. I have also been told of an outfit called Curadebt (www.curadebt.com) that claims to not only consolidate your bills, but negotiate some down.

Do any of you have additional advice or comments on these approaches? Thank you very much."

see this forum at : http://forums.kiplinger.com/showthread.php?t=3707

Link to a forum : Consumer Credit Counseling

2007-11-06T11:21:00.000-08:00

First comment from this forum :

"I was wondering if anyone has ever used the Consumer Credit Counseling service before. If so, besides helping you get your debt paid off, was it a good experience?"

see this forum at : http://forums.dmmoms.com/viewtopic.php?t=1588

Link to a forum : Anyone done Credit Counseling?

2007-11-01T16:27:00.000-07:00

First comment from this forum :

I did a search on this and couldnt find anything relevent, so Im sorry if this has been done before!

Im supposed to talk to someone from the credit counseling company tomorrow, but I want to see if anyone has done this, and know if its really a good idea or not. From what I understand its a company that negotiates better rates on your credit cards, but its not a consolidation. They would cancel or lock the existing cards and wed be unable to open any new ones until its paid off. It seems like it would be paid off much faster (for about hte same amount we are currently doling out) than if we just paid as usual. Theres a monthy fee, but I think it gets put towards your total debt.
Is it worth it?

here is the link to this forum : http://www.mothering.com/discussions/showthread.php?t=494864

Article : Beware of Consumer Credit Counseling - Debt Negotiators

2007-11-01T16:22:00.000-07:00

You've watched the TV commercials, heard the radio ads, saw the web banners and SPAM in your e-mail:

"LOWER your interest rates and payments!"

"Combine your bills into ONE LOW monthly payment!"

"We can eliminate up to 60% of your debt through negotiations!"

Who are those outfits and WHAT will you get?

They promise to reduce your debts and payments, often hyping their non profit status. The non profits are usually funded by the finance industry, the goal is to reduce bankruptcies. Creditors don't want the debts discharged, they rather forgive some interest and fees and collect whatever they can.

I also reviewed some of the contracts for debt negotiators and I was appalled by the outrageous fees charged to the people who would often qualify to discharge their entire unsecured debt through bankruptcy for just a few hundred dollars.

November 4, 2001 Washington Post article:

Easing the Credit Crunch?
AmeriDebt Is One of a Breed Of New Debt-Counseling Firms Whose Business Practices Are Drawing Regulators' Attention

"When his creditors didn't receive that month's payments, Reed said, he was charged late fees, over-the-limit penalties and higher interest rates. "My credit had been absolutely spotless, but now it's ruined," he said."

Paying off your debts will most likely NOT save your credit rating

Bankruptcy is often referred to as the "10 year mistake" by many of these debt negotiating and credit counseling companies.

Of course bankruptcy lowers your credit scores significantly for a few years. However, the credit counseling notation found on many credit reports for people who thought they were doing the "right thing" by paying back almost their entire debt can be worse than the bankruptcy.

Some people are lucky and those notations go away once the accounts are paid off. Unfortunately you can also end up with credit such as the scanned Equifax report below:

"Consumer Credit Counseling" -- rated similar to bankruptcy
"30 (or 60) days past due x times" -- LATE payments, while the consumer made EVERY payment on time
"Pays 61-90 days" -- while the consumer made EVERY payment on time
"Account closed by credit grantor" - often consumers have to close all accounts when entering the program

FACT: Your credit rating is most likely BETTER 2 years after discharging your debts than 3 years after entering a payment plan.

Yes, there WILL be creditors who won't offer you credit with a bankruptcy, even after several years. BUT, why would you need that credit?

Why would you even WANT a Home Depot charge card with a 20% interest rate when you have $$$$$ in the bank? Remember that when you discharge your debts, you then can start SAVING your money.

So, BEFORE you enter a repayment plan, you MUST get in writing that NO derogatory data will be placed on your credit reports as long as you make your payments on time. Should you find a company who is willing to do that, PLEASE post in the forum or fax that statement to me at (571) 222-1000.

........ read all from the source : bayhouse http://www.bayhouse.com/credit-counseling.shtml

Credit counseling

2007-10-26T11:30:00.000-07:00

Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education.

Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.

source : http://en.wikipedia.org/wiki/Credit_counseling

Common features of Debt Management Programs

2007-10-26T11:29:00.000-07:00

After joining a DMP, the creditors will close the customer's accounts and restrict the accounts to future charges. The most common benefit of a DMP as advertised by most agencies is the consolidation of multiple monthly payments into one monthly payment, which is usually less than the sum of the individual payments previously paid by the customer. This is because credit cards banks will usually accept a lower monthly payment from a customer in a DMP than if the customer were paying the account on their own. Some DMPs advertise that payments can be cut by 50%, although a reduction of 10-20% is more common.

The second feature of a DMP is a reduction in interest rates charged by creditors. A customer with a defaulted credit card account will often be paying an interest rate approaching 30%. Upon joining a DMP, credit card banks sometimes lower the annual percentage rates charged to 5-10%, and a few eliminate interest altogether. This reduction in interest allows the counseling agencies to advertise that their customers will be debt free in periods of 3-6 years, rather than the 20+ years that it would take to pay off a large amount of debt at high interest rates.

A third benefit offered by credit counseling agencies is the process of bringing delinquent accounts current. This is often called "reaging" or "curing" an account. This usually occurs after making a series of on-time payments through the debt management program as a show of good faith and commitment to completion of the program. For example, a client with an account with a monthly payment of $50 which has not been paid in two months might be considered by the creditor to be 60 days past due. After joining the DMP and making three consecutive monthly payments, the creditor could reage the account to reflect a current status. Thereafter the monthly payment due on the statements would be the monthly payment negotiated by the DMP, and the account report as current to the credit bureaus. It should be noted that this process does not eliminate the prior delinquencies from the credit bureau reports. It merely gives a fresh start and an opportunity for the client to begin building a positive credit history. Like all derogatory credit information, the passage of time will lessen the impact of the negative marks when credit scores are calculated.

source : http://en.wikipedia.org/wiki/Credit_counseling

History of credit counseling

2007-10-26T11:28:00.001-07:00

The first credit counseling agencies were created in 1951 in the United States when credit grantors created The National Foundation for Credit Counseling, or NFCC. According to W. Patrick Boisclair, Chairman of the NFCC's Board of Trustees, "the NFCC initially monitored legislative and regulatory activity for its retail credit members" and "also conducted public awareness campaigns on credit."(source) Their stated objective was to promote financial literacy and help consumers avoid bankruptcy, but they did not serve as collection agencies for the creditors. The first local credit counseling franchises emerged in the 1960's, offering education and counseling directly to consumers. NFCC is operated and the board of directors were major retailers, like JC Pennys and Sears, that used NFCC to act as a collection agency for bad debts.

In 1993, the “Association of Independent Consumer Credit Counseling Agencies,” or AICCCA, was founded, citing a need for “industry-wide standards of excellence and ethical conduct.” This formally organized the NFCC’s competition. The AICCCA was formed from the group of counselors who favored telephone delivery of debt management programs. The NFCC was, in the beginning, strongly opposed to this telephone business model, primarily favoring face-to-face counseling as a more effective solution. Eventually, all organizations practiced both phone and face-to-face processes with some agencies using large inbound call centers driven by mass media advertising.

The credit counseling industry’s third major trade organization is its largest: the American Association of Debt Management Organizations, or AADMO.

However, not all credit counseling agencies belong to a trade organization, nor are they required to do so; there are well over 1,000 active credit counseling organizations in the United States.

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made credit counseling a requirement for consumer debtors filing for Bankruptcy in the United States. In order to meet this requirement, during the 180-day period preceding the filing of bankruptcy, the debtor must complete a program with an approved nonprofit budget and credit counseling agency. Such a program may include, but is not limited to, one counseling session conducted by phone or over the internet. In addition, a post-filing debtor education credit counseling session is required in order to complete the bankruptcy process and to have your debts discharged.

Credit Counselling is also a growing industry in Europe, both for profit-making debt management companies and charities such as Christians Against Poverty and the Consumer Credit Counselling Service, Britain's largest debt advice charity.

source : http://en.wikipedia.org/wiki/Credit_counseling