Dear Susan & Co.,
My first question is do I have to come in to your office to get help using your service.
I have some credit cards that keep charging me interest, over the limit fees, and late charges. At this rate I will be over 100 before I can get out of this. Is there a way to help me without me coming in, I live too far away from the city to be able to do that, also with young children. c...m
Dear c...m:
Yes, our affiliate Money Management International (MMI) offers the same service as CCCS except all of their counseling is done by phone, fax, mail and the Internet. You do not have to go into any office at any time.
Call MMI at 1-800-762-2271 and speak to a financial counselor. During your counseling session, your counselor will review your overall financial situation, discuss possible solutions and make recommendations for you to consider. Counselors are available 24 hours a day, 7 days a week.
If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced payments to creditors. The DMP is an alternative to bankruptcy. It serves the dual role of helping you repay your debts and helping creditors collect money owed them. You agree to deposit funds with MMI each month which MMI will then distribute to your creditors until you become debt free.
Some creditors will make adjustments on their finance charges and/or other fees for clients on a DMP. Others will not. This is an individual creditor policy which may change over time. The DMP also seeks to help you maintain your good credit or reestablish your credit. Good luck.
Dear Susan & Co.,
Will I be able to use my credit while on a 'plan?' Anna
Dear Anna:
Our mission and purpose is to help people get out of debt. You do that by not incurring any more debt. The only way we can help is if you agree to return all of your credit cards to the creditor and agree that no further charges will be made on your accounts nor will you ask anyone for more credit while you are on the our program. Exceptions are made for justifiable reasons. You will need to discuss with your counselor if an exception can be made.
Dear Susan & Co.,
I am very interested in your debt counseling program, but if I inquire on how you can help and what kind of program you can offer, am I obligated to sign up? I would like to shop around for the best option for us. Is this possible in a situation like this? I am not clear on one issue, if you make arrangements with our creditors to accept lower payments based on our income, but they do not lower the interest rate, won't it take us forever to pay them off? Brill
Dear Brill:
When you initially contact us, you will be under no obligation to sign up at that time. We encourage you to shop around so that when you are ready, you hopefully will be able to commit yourself 100% to whatever program you chose in helping you get out of debt.
When you enter a debt management program, your counselor will work out a payment amount to get you out of debt in a reasonable length of time. This payment amount will take into consideration the fact some creditors will not make any adjustments to the interest and fees they charge. This is also one of the reasons why we ask a client to not lower their deposit amount while on the program. Instead we encourage a client to increase their deposit whenever they have extra funds available so they can get out of debt sooner.
Dear Susan & Co.,
If you go through the program, will you ever be able to purchase a car? What will your credit rating be like? Will you ever qualify for a bank or home loan? Who normally seeks your service, is it someone who is unable to get a debt consolidation loan? How many months behind should you be? Dwayne
Dear Dwayne:
Once you have completed the program you should be able to get a car financed, provided your credit prior to entering the program was not extremely derogatory. Entering into a Debt Management Program (DMP) will not change anything which is already on your credit report. Creditors may report that you are on a DMP and are not paying as originally agreed although they have accepted the reduced payment. After successfully completing a DMP, CCCS will help you in reestablishing your credit with certain of your creditors. We must mention that is up to the individual creditor whether or not credit will in fact be granted in the future.
The clients who contact us have a variety of professions, income level, debt level, etc. Nobody, and I want to emphasize nobody, is immune from running into financial difficulties. You don't need to be behind on your bills before you call us. What we wish everybody would do is contact us before the become delinquent on their debt. We could then hopefully give them advice on how they can avoid a debt crisis situation.
Dear Susan & Co.,
I want to know how this affects my credit report. My friend says doing this program is just, if, not worse than filing bankrupt. Is this true? And how does such a large company operate only on donations? Are there some hidden charges or fees I get after I pay my debts? Carmen
Dear Carmen:
Let us give you the assurance your participation in a Debt Management Program (DMP) will not show up like a bankruptcy on your credit bureau file. The DMP is an alternative to bankruptcy so you won't have a blemish noted for up to 10 years, as you would if you filed for bankruptcy .
The DMP will not change anything which is already on your credit report. Creditors may report that you are on a DMP and are not paying as originally agreed although they have accepted the reduced payment. After successfully completing a DMP, CCCS will help you in reestablishing your credit with certain of your creditors. We must mention that it is up to the individual creditor whether or not credit will in fact be granted in the future.
Most of our funding comes from voluntary contributions from creditors who participate in DMPs. Since creditors have a financial interest in getting paid, most are willing to make contributions to help fund our agency.
Dear Susan & Co.,
I am ready to use a debt counseling service however, my husband "refuses" to let anyone take his credit cards away. How does this work? Can one card be kept for emergencies? Also, does using a counseling service damage credit further? Thank you in advance for your response. Karen
Dear Karen:
Until your husband breaks his addiction to credit cards, you will have a difficult, if not impossible, time getting out of debt and on sound financial footing.
Before you do anything further, challenge your husband to this experiment. Ask that he put his credit cards in a drawer and not use them for the next 30 days. What you are trying to do is help him break his addiction to credit cards. It generally takes less than 30 days to break someone from any type of addiction such as drugs, alcohol, etc. Credit cards can be included in this group. Within 30 days your husband can see that life goes on without the need for credit cards. Hopefully he can then see the benefits of not relying on credit cards all the time and get on to a program that promotes sound money management and the wise use of credit.
One of the requirements for a Debt Management Program (DMP) is that there will be no more use of credit while you are on the program. If we are asking creditors to accept reduced payments and make other concessions, it stands to reason that they do not want you getting further in debt. Creditors require that we account for all of your credit cards. Therefore it is strongly suggested that you include all of your credit cards on the program unless you can give justifiable reason why a specific creditor should be excluded.
In regard to your credit, your participation in a DMP will not change anything which is already on your credit report. Creditors may report that you are on a DMP and are not paying as originally agreed although they have accepted the reduced payment. We must mention that it is up to the individual creditor whether or not credit will in fact be granted in the future.
Dear Susan & Co.,
Yes, we are in need of some serious credit counseling. It seems to go up and down all the time and yes, we would finally like to see what debt-free feels like. If this is something that we might be able to use without going into "B" court. Stuart
Dear Stuart:
My suggestion is that you contact your nearest CCCS office and schedule an appointment to speak to a professional counselor. During your counseling session, your counselor will review your overall financial situation, discuss possible solutions and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP). The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed them. It also is a specific plan to get you out of debt in a reasonable length of time. You agree to deposit funds with CCCS each month which CCCS will then distribute to your creditors until you become debt free.
Another benefit of a DMP is some creditors will stop or reduce their finance charges and/or fees. Others will not. This is an individual creditor policy and these policies may change over the course of a DMP. Your counselor can tell you what the policy is with each one of your specific creditors.
To locate the closest CCCS office, call 1-800-388-2227. If it is inconvenient for you to visit a CCCS office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as CCCS except MMI counseling is done over the phone, by mail, fax and the Internet. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
I need more information as to how to continue to pay my debts without declaring bankruptcy. m2m
Dear m2m:
Your comment is too general for me to give you a specific answer and solution to your problem. What I strongly suggest you do is contact your nearest CCCS office and schedule an appointment to speak to a professional financial counselor. During your counseling session, your counselor will analyze your income, expenses and overall financial situation; discuss possible solutions; and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced monthly payments to creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed to them.
To locate the closest CCCS office, call 1-800-388-2227. If it is not convenient for you to visit a CCCS office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service a CCCS except MMI counseling is done over the phone, by fax, mail and the Internet. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
I would like to know more about your Debt Management Programs and whether it would work for me. I am currently at about 60% of debt ratio. I pay my bills on time and pay more on my credit cards most of the time. My credit is good but if I could get a loan for the entire amount I could lower my payments which would be great. I couldn't find a site for New Mexico so if you have any advice I would appreciate it. Email works best. Thanks. Sincerely, Felix H
Dear Felix:
In New Mexico there are CCCS offices in Albuquerque, Clovis, Farmington, Hobbs, Las Cruces, Roswell and Santa Fe. If you prefer to explore counseling via email, initially call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as CCCS except counseling is done over the phone, by fax, mail and email. Counselors are available 24 hours a day, 7 days a week.
When you contact MMI a trained professional counselor will analyze your income, expenses and overall financial situation; discuss possible solutions and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced monthly payments to your creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed them. It also serves the purpose of getting you out of debt in a reasonable length of time.
Dear Susan & Co.,
I am considering partnering up with a debt management program what are the differences in the different organizations? Additionally my lease is going to up on my car in about 9 months - if I join this program how will it affect my capabilities of leasing another car? Thank you for any help you can provide. Michele
Dear Michele:
All counseling agencies that offer a debt management program (DMP) operate in basically the same manner. A DMP is a voluntary arrangement between you, the counseling agency and your creditors. It serves the dual role of helping you repay your debts and helping creditors collect money owed them.
Where there might be differences is in how they do their counseling and whether they charge a fee. Some agencies offer counseling exclusively in person, others by phone, fax, mail and the Internet. Most agencies offer free counseling but will charge to administer a DMP.
The agencies I am affiliated with are CCCS of the Gulf Coast Area, Inc. (CCCSGCA) which serves the greater Houston, Texas area and Money Management International (MMI) whose services are available internationally. CCCSGCA counsels exclusively in person to consumers in the greater Houston area. MMI offers counseling by phone, fax, mail and the Internet to consumers no matter where they might live.
If you live in the Houston area, call CCCSGCA at 1-800-873-2227 to set an appointment to speak to a counselor. To instantly speak to an MMI counselors call 1-800-762-2271. MMI counselors are available 24 hours a day, 7 days a week. Give either one of us a call.
It is impossible for me to say whether your being on a DMP will affect your ability to lease another car. Each creditor sets their own criteria in approving a lease contract. In most cases the leasing company is most concerned on how you handled your previous lease payments. If you paid all your payments on time, they will lease you another car. If you didn't, they won't.
Dear Susan & Co.,
I have an excellent credit rating so far, but I'm having trouble meeting my minimum payments each month; I've been paying my bills with other credit cards and help from my sister. Now I've reached ax on most of my cards. I have debt of about $44,000 not including my car payment. Interest rates on my credit cards range from 9.9 to 15%. What kind of interest rate can I get if I enroll in your program, and how bad will my credit degrade? SE Park
Dear SE Park:
If you enter into a Debt Management Program (DMP), some creditors will stop or reduce their finance charges and/or other fees. Others will not. This is an individual creditor policy and these policies may change over the course of a DMP. Both MMI and our national organization, the National Foundation for Consumer Credit (NFCC), actively work towards gaining more creditor cooperation in this area. Your counselor can tell you which one of your creditors offer concessions on the interest and/or fees.
In regard to your credit, your participation in a DMP will not change anything which is already on your credit report. If your report reflects that you have paid creditors as agreed in the past, a DMP could have an impact on your creditworthiness in the future. Creditors may report that you are on a DMP and are not paying as originally agreed although they have accepted the reduced payment. After successfully completing a DMP, MMI and the NFCC will help you in reestablishing your credit with certain of your creditors. We must mention that it is up to the individual creditor whether or not credit will in fact be granted in the future.
From what I see, if you don't enroll in a DMP, your next course of action might be bankruptcy. Don't wait until it is too late and you have no other recourse but to file bankruptcy. That could end up being a mistake that could jeopardize your getting credit for the next ten years.
Dear Susan & Co.,
Is it true that if a person who is in big debts went to a credit counseling for help and all the debts were paid that they cannot borrow any money for 7-10 years even though accts. were paid. Second question... if I need help and my husband does not want to participate to the credit counseling, can I still go for help. I appreciate any advice you can give me. I need help. Thanks. Busse
Dear Busse:
Your participation in a debt management program (DMP) will not change anything which is already on your credit report. If your credit reflects that you paid creditors as agreed in the past, the DMP could show you are not paying as originally agreed although your creditors have accepted the reduced payment.
How your credit report looks after completing a DMP will depend on what it looked like when you entered the program, the consistency of your payments, whether you increased them over time, and the individual creditor's reporting policies. One of the benefits of successfully completing a DMP is help from MMI in reestablishing your credit.
I have never heard of anybody, after successfully completing a DMP, not being able to get credit again for 7 years. That just doesn't happen. In most cases they are able to obtain whatever credit they want, provided they made all their payments on time while they were on the program.
We will gladly speak to you without your husband's participation during the counseling session. If you chose to start a DMP, in most cases we prefer to have both spouses on the program. Exceptions are made for justifiable reasons. Discuss this with your counselor when you call. Our number is 1-800-762-2271. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
Please tell me how I can get help paying off credit cards and reestablishing my good credit I am only 23 and have already ruined my credit. I am willing to do what it takes to earn my way back into the good graces of my creditors. Thank you. BG
Dear BG:
What I strongly suggest you do is contact your nearest CCCS office and schedule an appointment to speak to a professional counselor. During your counseling session, your counselor will review your overall financial situation, discuss possible solutions and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced payments to creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed them. You agree to deposit funds with CCCS each month which CCCS will then distribute to your creditors until you become debt free.
To locate the closest CCCS office, call 1-800-388-2227. If it is inconvenient for you to visit a CCCS office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as CCCS except MMI counseling is done over the phone, by mail, fax and the Internet. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
I really do appreciate the ability to ask this question. I am 27 years old and currently have approx. $14,000 in credit card debt alone. I started a much better paying job this April and have since been trying to STOP charging and start paying the bills. I currently have an excellent credit rating. By using the CCCS service, will this rating be jeopardized in any way?? I would like someone to help me out in terms of closing my accounts, consolidating, getting into a payoff stage, etc....but I really don't want my payments lessened by the creditors if it is going to affect my credit rating. Please let me know how all of this works. In need of your help, Denise, PA
Dear Denise:
Entering into a Debt Management Program (DMP) will not change anything which is already on your credit report. Creditors may report that you are on a DMP and they have accepted the proposed payment. Once you have completed the program, all notation that you are on a DMP should be removed. If your scheduled payments are not reduced through the DMP, your credit rating should not be jeopardized.
Before getting on a DMP, schedule an appointment with a CCCS counselor to discuss your other concerns (closing your accounts, etc.). Have your counselor come up with a DMP plan to see if this is what you want to do. Ask your counselor the pros and cons about a DMP. Once you know all of the facts, you can then make a better decision on what you should do. Good luck.
Dear Susan & Co.,
How are you able to help? Is this like debt consolidation? Danielle & Martin
Dear D & M:
Consumer Credit Counseling Service (CCCS) mission is to promote sound financial management practices and the wise use of credit. We do this by providing professional counseling and debt management assistance. Counseling is available in person, by phone, fax, mail and the Internet.
If you set an appointment to speak to a counselor, during your counseling session your counselor will analyze your income, expenses and overall financial situation. Possible solutions to your financial problem will be discussed and recommendations will be made for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a CCCS Debt Management Program (DMP) which allows you to make reduced monthly payments to your creditors.
The DMP is a voluntary arrangement between you, CCCS and your creditors. It serves the dual role of helping you repay your debts and helping your creditors collect money owed them. You agree to deposit funds with CCCS each month which CCCS will then distribute to your creditors until you become debt free. The DMP works similar to a consolidation in that you make only one payment each month and that payment is to CCCS.
Dear Susan & Co.,
Can I work with your service over the Internet without having to come to your office in order to try and reestablish my credit? I have about 5 credit cards with outstanding balances. In addition to this, I owe old bank fees. Can you help? "Credit Problems"
Dear Credit Problems:
Yes, you can utilize our services over the Internet. Our affiliate Money Management International (MMI) offers the same service as CCCS except counseling is done over the phone, by fax, mail or the Internet. Phone counselors are available 24 hours a day, 7 days a week at 1-800-762-2271. MMI's Internet address is: www.moneymanagement.org
When you contact MMI either by phone or over the Internet, a trained professional counselor will analyze your income, expenses and overall financial situation; discuss possible solutions and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced monthly payments to your creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed them. It also serves the purpose of getting you out of debt in a reasonable length of time.
Dear Susan & Co.,
After signing up for your program, do creditors have a tendency to reverse late and overlimit fee charges? Also, do you have to register all of your credit cards in the program or only the ones you are having difficulties managing? Christine
Dear Christine:
When you participate in a Debt Management Program (DMP) some creditors will stop or reduce their finance charges and/or fees. Others will not. This is an individual creditor policy and these policies may change over the course of a DMP. Your counselor can tell you what the policy is with each one of your specific creditors.
One of the requirements for a DMP is that there will be no more use of credit while you are on the program. If we are asking creditors to accept reduced payments and make other concessions, it stands to reason that they do not want you getting further into debt. Creditors require that we account for all of your credit cards. Therefore it is strongly suggested that you include all of your credit cards on the program unless you can give justifiable reason why a specific creditor should be excluded.
Dear Susan & Co.,
We are wondering if you can help us with our credit card debt, our debt to income ratio is a little over 50%, with rent and utilities we are having a rough time. We were interested in help with debt consolidation, lowering the interest rates on our debt, and budget counseling. Please let me know what help we are entitled too. David D
Dear David:
How CCCS can possibly help you is through a formal program they have called a Debt Management Program (DMP). A DMP is a voluntary arrangement between you, CCCS and your creditors. The program serves the dual role of helping you repay your debts and helping your creditors collect the money owed to them. You agree to deposit funds with CCCS each month which CCCS will then distribute to your creditors until you become debt free. The procedure is to speak to a financial counselor to discuss your overall financial situation. If your debts are truly unmanageable, your counselor will explore the possibility of a DMP.
If you enter a DMP, some creditors will stop or reduce their finance charges and/or other fees. Others will not. This is an individual creditor policy and these policies may change over the course of a DMP. We actively work toward gaining more creditor cooperation in this area but cannot make any guarantees.
If there is no CCCS office in your area, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers DMP capabilities and counseling is done by phone, fax, mail and email. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
Could you please explain how this service works. What are the rates? Ken H
Dear Ken:
Consumer Credit Counceling Service (CCCS) is a non-profit, community action organization designed to help people help themselves and solve their debt and budget problems. Professional counselors offer individualized advice for developing and balancing a budget, trimming spending, managing money, using credit wisely and building a savings plan. If a consumer's debts are truly unmanageable, the counselor will explore the possibility of a CCCS Debt Management Program (DMP) which allows you to make reduced monthly payments to creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed them.
Dear Susan & Co.,
I called and requested a Debt Mgmt. program packet/form to complete. My question is: Are there certain qualifications to meet in order to be able to benefit from this program with you and my creditors? In other words, if my husband and I have numerous debts, but...very good credit, and a decent income, will we still be able to take advantage of working out a different method of paying back the creditors through your company? Obviously, I have contacted you, because we feel that we need help with managing our debts and finances. We have always paid our bills but are afraid that we will eventually be delinquent, or file bankruptcy, on most of our obligations because we can't manage them ourselves it seems, anymore. So far we are paying them off slowly, but with no extra money for anything else. I am a homemaker, with 3 kids, one in college, and two in grade school. Literally, my husband's paycheck is gone before it is deposited! There has got to be a better way. He (my husband) has put all of our financial data matters on the PC software, Quicken, and yet our checking account is always negative, and he has to always juggle the bills to make ends meet. We still can't budget. Can you help? Thanks in advance, Mia
Dear Mia:
The Debt Management Program (DMP) requires no specific qualifications. Anybody can enter into a DMP if they feel that is the solution to them getting out of debt. The purpose of the DMP is to help individuals or families that are having difficult in making their regular payments to their creditors, are behind on their payments or anticipate falling behind on paying their bills. The DMP serves the dual role of helping you repay your debts and helping creditors collect the money owed them. The DMP certainly is better than your filing for bankruptcy.
Dear Susan & Co.,
I have unsecured credit card debt of 32,000.00. I am mother of 2 pre-schoolers - and was scammed last year by a business-opportunity that has now resulted in this debt. I am also 2 years into the process of getting a divorce; my future-ex's not paying court ordered spousal support of $250.00/month has also contributed to my needing to declare bankruptcy. I have been working part/time as a telemarketer and receive $600.00/month--or less (the company moved the office and got auto-dialers), they did not purchase good leads during the last 2 months.(so my income has been lower). I share an apartment with a friend, but rent is still more than 50 % of my income.
I have received a summons from one creditor status conference May 25, and several collections letters. Do you have a way to avoid bankruptcy for my situation?
Ps. I live in California, the biz-opp companies were under investigation by the FTC - who supposedly settled on April 14. I have not heard any info from them, if I have any redress, it may be months before it is received. My credit was good - excellent before, in desperation for an income, I tried these biz-opps.
Thanks for your help, Facing Bankruptcy Soon.
Dear Facing:
Your situation is too involved to give you a proper solution to your dilemma via email. You need to contact the nearest CCCS office to where you live and set an appointment to speak to a financial counselor. During the counseling session, the counselor will analyze your income, budget and debt to discuss possible solutions and make recommendations for you to consider. If it is inconvenient to visit a CCCS office, consider contacting our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers counseling over the phone, by mail, email and fax, 24 hours a day, 7 days a week.
Dear Susan & Co.,
I went through your Consumer Credit Counseling Service in Dayton, Ohio back in 1993. I made all my payments as you disbursed them amongst my creditors. Eventually, late 1994, I received a letter that the only bill I had left (out of several) was my car note. That has since been paid off as well.
With that said, my wife and I are looking into buying a home. When my credit report was reviewed, one of the creditors that had been paid off through our contract is showing as not paid. Unfortunately, I am unable to find my paperwork!!!!!! Is there ANY WAY of finding ANY record of our contract? Who the creditors were? And when my debt was paid off???
Please let me know at your earliest convenience. James R.
Dear R:
Contact the CCCS office in Dayton, Ohio (937-643-2227) and ask if they still have a record of your file. The chances are they probably have the information you are seeking.
You also need to contact the credit reporting agency (CRA) to dispute what is being reported. The Federal Fair Credit Reporting Act permits a consumer to dispute inaccurate information with the CRA. You need to supply the CRA with as much information as you can about the item in dispute. The CRA must investigate the item by presenting your dispute to the source of the inaccurate information. The source must review your evidence and report its findings to the CRA. The CRA must give you a written report of the investigation, and a copy of your report if the investigation results in any change. This investigation should take about 30 days.
If you need further assistance, ask your local CCCS office for advice. The number for the CCCS office closest to Norfolk, VA is in Richmond at (804) 780-9042.
Dear Susan & Co.,
I am seeking advice. Here is the scenario: I have always paid my bills on time and usually "before time", so my credit is really good. However, currently I am sitting waiting on the other shoe to drop. I left my full time job in November '97 and was doing "temp" work while seeking a new position, so I did not have any insurance. In December, I suffered a brain aneurysm (thank God I am completely all right) and needless to say, the medical bills are astronomical. Because of friends, family, church, and savings, I have been able to maintain my regular bills up until this point.
The medical bills are rolling in and I know that I can't pay them. To add to the situation, in October of this year, I am scheduled to return my leased vehicle. Because the medical bills will more than likely be listed on my credit report by then, dealers will probably just laugh at me when it comes to any type of financing. All of that to ask, do you know of any %#34;preventative" measures that I can take to keep the medical bills from destroying my credit rating?
I am just at the end of recuperation and resuming my job search. It makes it difficult to make arrangements on a job that I do not have yet. However, I know that I can't just go on "not" opening the bills or responding to those demanding full payment now. JB
Dear JB:
We here at CCCS have heard of dilemmas similar to yours a number of times. You MUST contact the closest CCCS office to you to schedule a session with a financial counselor. During this session, a trained, professional counselor will analyze your overall financial situation; discuss possible solutions; and make recommendations for you to consider. If debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced monthly payments to creditors. The DMP serves the dual role of helping you repay your debts and helping creditors collect money owed to them.
If it is inconvenient for you to visit a CCCS office, consider contacting our affiliate, Money Management International (MMI) at 1-800-762-2271. MMI offers counseling over the phone, by mail, email and fax. MMI Counselors are available 24 hours a day, 7 days a week.
If these medical bills have not been turned over to a collection agency, they probably have not been reported as delinquent to the credit reporting agencies and your credit should still be satisfactory. Contact either CCCS or MMI before this adverse action takes place. Good luck.
Dear Susan & Co.,
I pay my credit card bills on time, however, I only pay the minimum and always carry a balance. I am tired of living pay check to pay check and would like to start saving more, and become debt free. What kind of services should I research in this effort and what kind of services would the consumer credit counseling service offer me? Also, I have small children, so sitting in an office for an extended period of time is out of the question, usually how long does an initial meeting take? Thank You. Noah
Dear Noah:
You need to talk to a CCCS financial counselor and explore getting on a Debt Management Program. This is a program designed specifically to get you out of debt in a reasonable length of time. The initial counseling session generally lasts from one to one and a half hours.
If you are unable to devote a hour for an in person interview with a counselor, consider calling our affiliate, Money Management International (MMI) at 1-800-762-2271. MMI offers counseling over the phone, by mail, fax and email and has counselors on duty 24 hours a day, 7 days a week.
Dear Susan & Co.,
I need some information re: the above at the present time I am involved with a Debt Relief agency which charges me $130 each month to handle 16 accounts. I was encouraged to contact a non-profit organization to see if I could receive this service free of charge or a smaller amount being charged. Can you help me? Helen
Dear Helen:
There is no justifiable reason for you to pay ANYBODY $130 a month to help you pay your bills when any CCCS agency will do the same thing for you for, at most, a small contribution.
In looking at an atlas, there are three CCCS offices near where you live. They are in Lakeland (407) 895-8886, and Tampa or Brandon (813) 289-6452. If you are unable to personally visit a CCCS office, consider calling our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers counseling over the phone, by mail, fax and email and has counselors on duty 24 hours a day, 7 days a week.
Dear Susan & Co.,
I have applied with the CCCS in my area. My debts went out of control, though I make good money, it’s never enough to pay my monthly bills which resulted to not being able to save, and my life being miserable and paying high interests. I heard about CCCS from one of my creditors so I scheduled an appointment and signed in. My concern is: I already know my credit is DAMAGED but is it as worse as filing Chapter 13 bankruptcy? I am under a debt repayment program paying over $500.00 a month through CCCS, one of my friends said it's the same thing as bankruptcy. I did not think so but I want to know. After I graduate with CCCS and pay off everyone, will I be able to buy a house without being treated like I filed bankruptcy. I want to know the difference between DEBT REPAYMENT THROUGH CCCS and Chapter 13 Bankruptcy. My friend said there are no differences. I don't believe that. Please enlighten me with this subject matter. I always hoped to pay off all my creditors with every red cent that I owe and hopefully buy a house after I pay off everyone...is it possible?? Please answer. Worried
Dear Worried:
There definitely is a major difference in CCCS Debt Management Program (DMP) and Chapter 13 Bankruptcy. The primary difference is a notation that you filed Chapter 13 will remain on your credit bureau file for seven years and will affect your ability to get any type of credit in the future. After completing your DMP, CCCS makes no notation on your file that you were on their DMP. Your ability to finance a house in the future will depend on how your creditors report your pay history with them. How your credit report looks after completing your DMP will depend on what it looked like when you entered the program, the consistency of your payments and the individual creditor's reporting policy. Each creditor sets their own criteria for extending credit and your having been on CCCS DMP should not prevent you from financing a house. Filing Chapter 13 Bankruptcy will harm you more.
Dear Susan & Co.,
Due to changes in employment and sporadic pay periods, my husband and I recently became too overwhelmed to make the minimum payments on our three credit cards. While this amount does not seem as significant as some of the other peoples predicaments, it is stressing us! After we closed 2 of those accounts, we found out almost a year later that we owed about $1,000 more than when we closed those accounts - predominately due to late fees. With nowhere else to turn, we enrolled last month with CCCS. A friend of my husband's and financial planner told us that doing this was just as bad as filing bankruptcy. Few banks during the next seven years would give us a very good rating for our actions because the account would be labeled "settled" instead of "paid in full" - so what is the real story? I thought that we should be recognized for taking proactive measures to prohibit drastic extremes for the creditors or us. We are planning to pay the debts in full, just not the interest. Also, the planner told us to do it for a short amount of time - no longer than 8 months - and that would not affect us too adversely. What is the "True Story?" Confused
Dear Confused:
Your friend and financial planner are not giving you accurate advice. Entering CCCS Debt Management Program (DMP) is NOT as bad as filing bankruptcy. The DMP is an alternative to bankruptcy and every major creditor in this country would much rather have you enroll in a DMP than file for bankruptcy.
If you pay your credit card balance in full, it will NOT be labeled "settled". This "settled" notation is made ONLY when you settle with a creditor for less than the full balance due. You are not doing this. You are paying your balance in full and your creditor will note this accordingly.
What apparently is going to happen though is even though you pay your balance in full, the creditor will still show your account as paid unsatisfactorily. This is because you went over a year without paying on your account that still had a balance, even though the balance was predominantly late charges. Your creditor "charged off" your account as uncollectible and so reported this "charge off" to the credit reporting agencies. This "charge off" notation will remain on your file for seven years from date of charge off even though you ultimately pay the balance in full. This "charge off" notation, not your entering CCCS DMP, will perhaps hinder your getting credit in the future.
Hopefully this clarifies the issues brought up by your friend and financial planner.
Dear Susan & Co.,
I'm VERY interested in finding out about your Debt Management Program. I am on the verge of filing for bankruptcy because of all the problems I have been having with my creditors.
An expedited response would be appreciated! Thank you, Brian
Dear Brian:
A Debt Management Program (DMP) is a voluntary arrangement between you, CCCS and your creditors to help you repay your debts in an affordable fashion. What you need to do is call your nearest CCCS office to set an appointment to speak to a financial counselor. During the session, a trained, professional counselor will analyze your income, expenses and overall financial situation; discuss possible solutions; and make recommendations for you to consider with a DMP being one of your options. The DMP serves the dual role of helping you repay your debts and helping creditors collect the money owed to them.
If you are unable to visit a CCCS office you can consider calling our affiliate Money Management International (MMI) at 1-800-762-2271 and speak to a counselor over the phone. MMI offers counseling 24 hours a day, 7 days a week by phone, mail, fax or email.
Dear Susan & Co.,
I have a few questions. I'm thinking about going to a local office of CCCS to help me with my credit card debt problems. My question is: If I were to enter one of the debt repayment plans that they have, would it affect my student loans ( I am a freshman in college and rely on student loans for my financial aid), and my chances of getting the loans in the future??
Also, I recently got married, but if I enter one of the debt repayment plans, does my wife have to enter it with me, or can I enter it myself?? (The credit cards are all in my name and the balances were run up before I was married). Thank you for all your help. John B.
Dear John:
Check with you student loan financing source to see if your entering CCCS Debt Management Program (DMP) will affect your ability to get future student loans. They are the only ones who can give you a specific answer to that question.
Since all of your debts are in your name only, you should be able to get on a DMP without your wife being included. Be insistent with your counselor that that is the only way you will enter the program.
Dear Susan & Co.,
When using CCCS to consolidate debt, do I have to include all debt such as house, cars, etc.? Will using this service affect my credit rating? Douglas
Dear Douglas:
There are some debt that we do not include on a debt management program. For example, your house payment is one debt that we don't include. Call 1-800-762-2271 and speak to a counselor who can give you more specific information on what debts can be excluded from your program.
How your credit report looks after completing a debt management program will depend on what it looked like when you entered the program, the consistency of your payments, whether you increased them over time, and the individual creditor's reporting policies. While CCCS will work with your creditors to update your accounts to show zero balances on the accounts paid through CCCS, we have no control over how your pay history is reported by the individual creditors.
Dear Susan & Co.,
My husband and I are in a very scary and difficult situation right now and could use some advice. Credit card payments are taking over our lives. We are approximately $27,000 in debit. We have tried consolidating our bills but we keep running into the same problems. We have been told by many, many companies that we have insufficient income for total obligation. Our total payments are approximately $715 a month. We have 3 children and own a home. We need help fast!!!!!!
Sincerely, Scared
Dear Scared:
You need to call Money management International (MMI) at 1-800762-2271 and speak to one of our counselors. Inquire about a formal program we have to help consumers better manage their debts. The program is called a Debt Management Program (DMP) and it basically works like this. You tell the counselor who you owe, how much you owe each creditor and how much your monthly payment is to each creditor. The counselor will try to structure or restructure payments to your creditors to an amount that is both affordable on your part and acceptable on the creditor's part. In many cases this new payment is lower than your original payment amount. If this can be done, the counselor will suggest you get on a DMP and let MMI manage your debts for you.
Dear Susan & Co.,
I am deeply in debt, as many are. I am a divorced woman with 15 grandchildren. Though I try to cut down, and I do cut down, there is a constant cause for gift-giving. Though my salary permits me to make all my payments on time, I am left without any money from paycheck to paycheck. Some say I should seek credit counseling through an agency who would get lower interest rates, or make the payments under arranged terms, and I would pay the agency monthly, (or however that works).
I'll have to live until the year 2040 and NEVER charge another thing in order to pay off all my creditors. Sadly, though I would like to move from where I am now, rents are too high etc.
Basically, my credit rating is good, but there is nothing left over, no savings, nothing for emergency. Is there help for someone like me, BEFORE I get into trouble; or must one be delinquent or out of work to get help?
Thanks for your reply. GN
Dear GN:
You need to contact the nearest CCCS office to set an appointment to speak to a counselor about your debt situation. If you don't, you will never get out from the financial rut you are in. Your counselor will give you sound financial advice and come up with realistic solutions to overcome the difficulties you are in. CCCS counselors have spoken to thousands of consumers just like you and worked out a solution to their problem. The solution might not be easy or what you want to do but without your changing the way you are handling your finances, you will never see an end to your dilemma.
If there is not a CCCS office convenient to you or if it is difficult for you to visit an office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers counseling 24 hours a day, 7 days a week, by phone, mail, fax or email.
Dear Susan & Co.,
I am 25 with a wife and daughter, and we own a home. I am a successful software consultant in the St. Louis area. Through college and early out of school my wife and I accumulated a lot of "stupid" credit debt. We have been on the CCCS plan for about a year now, and we are making the payments, but we are living paycheck to paycheck to make all of the payments. Instead, we would like to get a loan to consolidate all of the debt into one payment to save on monthly payments. Lenders are telling us that we don't have enough equity in our home to pay off our entire credit debt. We have only had a couple of late payments and some overdrafts, but they were due to so-called financial advisors that we tried, who just charged us to pay our bills for us, and then paid our bills late. How can I improve my credit rating, and get a consolidation loan to pay off all of my credit card debt? Thanks, David
Dear David:
You are looking for a solution that doesn't appear to be available at present. Even if you could get a consolidation loan, you probably couldn't get a loan that would make it easier to pay than your program with CCCS.
When your counselor at CCCS set up your debt management program, I'm sure the counselor told you how long it would be before you got completely out of debt. There is no simple or shortcut to getting out of a financial dilemma. You didn't get into this predicament overnight and you won't get out of it overnight. The only advice I can offer is stick with your debt management program. As each month passes, you will continue to see that progress is being made to both your getting out of debt and getting your credit rating improved. There is no other solution, that I can see, other than time.
Dear Susan & Co.,
I am in a situation where I had to leave my MUCH higher paying job in California.. to a MUCH lower paying job in Arkansas due to a family situation... and I am very behind in paying my bills... I would appreciate any assistance you can give me on getting my bills paid off... I checked out your Website and I was impressed with your operation... I think the program where you contact my debtors and I send you the money... and you pay the bills... I am not sure how it all works... but this was recommended to me by a friend that was in your program... and it worked well for him... I wish to enter into a similar program. I am living in Van Buren, Arkansas... a suburb of Ft. Smith. Thank you so much for your help. William
Dear William:
There is a CCCS office in Ft Smith serviced by CCCS out of Fayetteville. Call them at 501-521-8877 to set an appointment to speak with a financial counselor. The solution to your problem is probably a Debt Management Program (DMP) that CCCS offers. This is a voluntary arrangement between you, CCCS and your creditors. It helps you repay your debts and helps creditors collect money owed to them. Your counselor can explain other aspects of the Debt Management Program to you.
If it is inconvenient for you to visit a CCCS office, you can call our affiliate Money Management International (MMI) at 1-800-2271 and speak to a counselor over the phone. MMI offers counseling 24 hours a day, 7 days a week by phone, mail, fax or email.
Dear Susan & Co.,
I found your address on the Internet. I have been thinking about signing up with CCCS for quite sometime, but figured I could fix my own credit problems. I am now at my wits end!
Can you tell me what all is involved in signing up and how exactly does this work. I had someone tell me that they had asked for information once regarding credit counseling, and that they were informed by one of their creditors (which they were in good standing with) that their card would be terminated because they had contacted a counseling agency. Is this true? Can this happen?
Any information that you can give me is greatly appreciated.
Thank you. Kandy
Dear Kandy:
You need to contact the CCCS office closest to where you live to set an appointment to speak to a counselor. If you don't know where the nearest office might be, call 1-800-388-2227 and they will direct you to a CCCS office. If it is inconvenient for you to visit a CCCS office, call our affiliate, Money Management International (MMI) at 1-800-762-2271. MMI offers counseling over the phone, by mail, fax or email.
When you speak to a counselor, explain you dilemma. The counselor will analyze your income, expenses and overall financial situation, discuss possible solutions and make recommendations for you to consider. If your debts are truly unmanageable, your counselor will explore the possibility of a Debt Management Program (DMP) which allows you to make reduced monthly payments to your creditors. The DMP serves the purpose of helping you repay your debts and help creditors collect money owed to them.
While you are on the DMP, your creditors will suspend your credit privileges. After completing the program, you will need to contact your creditors and request they reactivate your account.
Dear Susan & Co.,
I'm in the mist of a divorce and all the credit was in my name... so I'm stuck with major expenses (that I know he could never afford to pay - so I'm not fighting for anything such as that)... but, I'm struggling with two jobs and still only paying minimum payments, so I'm not getting anywhere on my principal amounts. I also have a 18 year old daughter that I'm having to cover a car payment and insurance for. My concern is this...if I go through CCCS for services - how will it affect my credit...even though I'm have large debts, I've got great credit because I work hard and never get behind on bills. Now that I'm alone it's even more important that I have good credit in case I need to purchase a new car or something in the near future (I'm now driving a ‘89 with almost 200,000 miles), so I don't want to be in a position to have to pay 25% or more interest on a car loan later on just to get my credit in order today.
What is the difference between bankruptcy and going through CCCS? Thank you, Bettina
Dear Susan & Co.,
If I use a debt management service what effect does it have on my credit? Also how long does it normally take for some one to work their way out of debt? ( I realize this varies with the amount of $$$ involved - looking for a gut feel). Thanks. Alan
We try to structure a DMP to get a consumer out of debt in no more than three years. On occasion we might extend the program to five years. However, it is better for all concerned to clear the debt as quickly as possible.
Dear Susan & Co.,
I am a senior at Biola University. I am writing a strategic management paper in which I am to analyze the company and industry I would like to work for. My topic is Consumer Credit Counseling Service. I would like to cover areas such as the history of the organization, mission statement, generic strategy for dealing with industry trends and current financial position of the organization. If you can direct me to any sources with pertinent information, I would be extremely grateful. Your web page is extremely useful and informative. Linda
Dear Linda:
I'm glad you like the web page!
For an overall view of CCCS, try writing:
As the umbrella organization for CCCS offices nationwide, NFCC will have the historical and generic information you need. You can also try reaching them by phone at 1-800-388-2227. I'd ask for the public relations office.
To compare the approaches of individual CCCS offices (each is incorporated separately), ask NFCC for numbers of several offices across the country. You could compare the philosophy and approach of smaller agencies with the larger ones. Also, state law governing garnishment may influence agency procedures. Ask your contacts as you call.
Since you're interested in CCCS here in Houston, you could write Mike Sebesta in our marketing department. He may be able to help.
Good luck and thanks for writing.
Dear Susan & Co.,
I am interested in pursuing a career in credit counseling. Please forward any information you may have regarding credentials and training necessary to work for CCCS. Thank you. Lisa
Dear Lisa:
There are over 800 CCCS offices nationwide. As not-for-profit organizations we have similar goals, but each has its own counselor job description. Call 1-800-388-2227 for the office nearest you and then ask the human resource specialist to send you a job description.
Most offices look for individuals with strong people skills and experience in consumer finance or the credit industry. Some want college graduates, but life experience is also considered.
Training varies from office to office. Most will provide a few weeks of observation-and-question sessions with experienced counselors as well as an overview of company operations.
Historically, the counselor certification process takes place after the hire and within the first two years on the job. Counselors receive several study guides covering topics ranging from counseling philosophy to consumer rights to collection practices. Tests are administered 2 books at a time.
Again, your best source for particular expectations is the CCCS office nearest you. Thank you for writing!
Dear Susan & Co.,
I would like to know if it will damage a person's credit by getting help. Thank you. Wayne
Dear Wayne:
I assume you mean "Can I get help without any negative consequences to my credit report?" It depends on the type of help you want.
Help that doesn't show on your credit report: Taking stock of your situation.
What you can't have is a consequence free existence. The question I leave you with is this: If you don't ask for either kind of help, how will your credit report read in 2 months?
Dear Susan & Co.,
Thank you for reading my letter. My family has been experiencing problems with runaway debt for a couple of years now. It is due to many things, and I think my wife and I were not prepared to have three kids so soon. Could you provide some information on what I can do to solve my problems?
I am not interested in declaring bankruptcy and would like to work out a plan to repay my creditors and to eventually get rid of all my credit cards. I know that you are not in the Pensacola area, but I found your page on the web and though it might be a good place to start. Thank you for any suggestions and help you can provide. Karl
Dear Karl:
I'm glad you found us! It's quite possible that you can get some debt repayment help from CCCS. Some creditors offer lowered payments and reduced interest rates for consumer using the CCCS Debt Management Plan.
To find out what can be done for you, you can call for a phone appointment with CCCS in the Houston area at 1-800-873-2227. But if you prefer a face-to-face appointment, there is also a CCCS in the Pensacola area. Look for Consumer Credit Counseling Service in the white pages of your local directory, or call 1-800-388-CCCS for the CCCS nearest you.
Thank you for taking the time to write. I wish you the very best.