Consumer Credit Counseling Cccs

To further protect your online security, active links from Q&A has been disabled!

Has anyone used the CCCS for when they have been in debt - its not making yourself bankrupt and its not having debts written off - you pay a set amount each month to this company and they send your money to your creditors equally, you take your debt seriously and you pay all of it off - its just that the interest should hopefully be capped and you have a better life because your money is your own. has anyone ever done this or used this company - is it as it sounds or are there hidden scary bits!!

Best Answer

To try and answer your question, I was interviewed some months ago for a job working for the CCCS (didnt get selected but thats another story). YES! this is a very genuine free service provided by the CCCS, they will look in detail at a persons individual financial circumstances and help you to decide based on your incomings, overheads & levels of debit. Which plan of action is the most suitable for you such as IVA (individual voluntary agreements) or bankrupcy,etc. **Be aware there is a difference between IVA's & full blown bankrupcy & its quite big contast too. You need to understand the differences between these two things. Bankrupcy for example affects your credit scoring immediately and for I think atleast 12months so you wont be able to get any further credit during the 12mths concerned. IVA's dont affect your credit scoring in quite the same way. **NOTE, the CCCS is a registred charity and as such it doesnt take a fee off clients for the help it provides. This is VERY important as there are MANY debit busting companies who would just love to help you with your debits for a nice fat fee. Usually a % of your debit 10% is NOT uncommon, average fees to a debit clearance firm is about £6,000. SO contrast that with zero fees from the CCCS. **No! the CCCS are very trust worthy and IMO do a very very good job in providing real help.

I have posted similiar question about this but now that I went to CCCS for advice this is what they said. I'm overextended, duh? I thought that was a no brainer! I have 29000 in debt and the counselour stated it would cost me 772 a month to pay off my debt which would be at 10% for 5 years. I brought in a debt consilidation plan for a loan for $25000 with no collateral needed at 8.9% for 5 years and the counselour shunned at it and said I had no chance at that loan? She did not know how I was living within my means...I told her I had overtime and take surveys on the internet and use Bank of Americas Keep the Change program. She did not comment on those things but said I could use food source and drive 1 hour to a Church to get food for $50 a month to save on food, but no milk, OJ, bread is provided? I have a WalMart across the street and I save gas that way. It just seemed she thought I was a deliquent consumer by I have a good credit history and pay bills on time where else can I go?

Best Answer

No. You should do this on your own. Credit counseling is, for most people, a very bad experience. I've heard many horror stories from my clients and not one of them would do it again. Also, it's a fact that it looks worse to be in credit counseling than to have filed for BK. Sit down with your bills and come up with a plan. Scale back all unnecessary expenses, get a 2nd job, get a roommate, only eat things you cook at home and figure out how to make it work. People have been in worse spots than you and have come out ok. You can do this. Good luck!

My stepson is being taken to court because of 3-4 missed payments on a 2001 Suzuki Gran Vitara. He bought it used in 2004 with 18,000 miles on it. If they wanted to repo it, wouldn't they just do it--or is a court date required first? Is it possible that the car is too old to repo and get something from reselling it? If so, would the purpose of the lawsuit be to get a monetary settlement? Just trying to figure out what might happen this Friday, Aug 24, when he goes to court. I have suggested that he go to CCCS (Consumer Credit Counselling Service) between now and the court date, to at least find out if they can suggest any options. Would an attorney be of any help to him in this situation?

Best Answer

He should be on the phone with the lender trying to work out repayment options BEFORE they take him to court. I mean, like yesterday! If they repo the car, and sell it for less than he owes, they can still sue him for the difference. He needs to be working out a plan with the lender to repay the missed payments (possibly, depending on the lender, 1/4 extra on each payment until it catches back up, or even adding the missed payments onto the backside of the loan). A REALLY GOOD attorney may be helpful in this situation, but you will probably just be throwing good money after bad with the run-of-the-mill attorney who runs an ad on the local TV station (The one you want doesn't have to buy TV spots, b/c he is swamped already by the good word-of-mouth reputation he has).

The person who came to me for help: $40K income, healthy, in debt US$140K (yes, one hundred forty thousand dollars) ($60K student loans in forbearance, $7K auto loan, the rest unsecured debt: $50K is maxed out credit card debt, mostly at default 30+% rates and the rest is loans from friends. About $1K in tax liability.). Some debts are freshly (30 - 60 days) delinquent, but none has gone to collections yet. No previous BK, charge-offs, collections or judgments. All 3 Credit reports have no serious errors, FICO scores unknown. Person is motivated, has already shown me recent credit reports and bills, cut up credit cards, developed detailed list of assets (car + $3K in illiquid assets + $1K cash) and liabilities, and is writing a monthly budget. What do you advise? Is the Consumer Credit Counseling Service Debt Management Program the best solution? What are your successes or failures with the CCCS DMP? Costs and benefits? Please answer the questions I've asked. Thanks.

Best Answer

I have never had a client of mine successfully complete one of the debt consolidation programs. I have seen these companies take money from people, not negotiate debts for them, and generally ignore the consumer when they get sued on the bad debts. These debt management programs are the same thing as filing a Chapter 13 bankruptcy, except with bankruptcy you have laws protecting you against creditors and you can be sure you aren't throwing your money away. You have no protection when dealing with debt consolidation companies. It's a huge risk. Since this person has a regular income, he/she is a good candidate for Chapter 13 bankruptcy. After 3-5 years paying into the Chapter 13 plan, the unpaid unsecured debt will be legally discharged. It will be no harder on their credit reports and score than negotiating debt through a debt relief agency.

I have found out that Ameridebt is not a good CCCS company to go thru if you want to reduce your credit card payments and finance charges but what about Clearpoint? Anyone have any info on that company? Thanks

Best Answer

Clearpoint is a CCCS agency, whereas Ameridebt was not. Ameridebt was pure scum and has been effectively shut down. Their owner is still trying to weasel out of returning client funds per court order. The best place to look is the Better Business Bureau. Make sure the agency you work with has a satisfactory rating. You may also wish to find an agency that has a local office so that you can speak with them in person.