Debt Free Partners » Credit Card Debt Consolidation

What is CCCS? Consumer Credit Counseling Services

admin — Tue, 04 Aug 2009 22:11:04 +0000

You’ve probably seen Consumer Credit Counseling ads on TV promising hope for those who are drowning in debt. Consumer Credit Counseling services (CCCS) offer what seem to be a magical pathway to getting out of debt. CCCS negotiates payment schedules with their client’s creditors and all the client has to do is make monthly payments to the CCCS Company. Seems simple, but is it really all that it seems to be?

A friend of mine who needed some help with his debt asked me if these services were effective or were they too good to be true. “Unfortunately, although there are good companies out there doing great work for people, if it sounds too good to be true it probably is,” I told him. As if someone in debt does not have enough problems to worry about, this industry that has good intentions of getting people back on their feet has been plagued by fraud and mismanagement.
Find the Right Company

A good credit counseling company can help you get back on the right track. A bad firm can disappear in the middle of the night with your money and what’s left of your credit rating. If you are considering this solution for getting out of debt, the first thing I would do would be to Google “rip off report” with the name of the company and see what comes up. This should tell you a lot. The Better Business Bureau should also be able to give you good background information on the company as well. There are good firms out there, but you really need to do your homework and ask around. How Do I Know I Need Credit Counseling?

How do you know if you need credit counseling?

• You are unable to make the monthly minimum monthly payments.
• You are being called by collections agencies and creditors
• You are consistently late on paying your bills
• You have failed to reach reasonable repayment plans with your creditors.

Just to be clear, if you are too far in debt a consumer credit counseling program may not be able to help you out. If you can’t make the payments that a consolidation program can negotiate, you may want to consider a bankruptcy.

What Kind of Debt Is Eligible For Debt Settlement? – Debt Negotiation Information

admin — Tue, 23 Jun 2009 20:00:46 +0000

Typically a debt lawyer will only be able to settle on unsecured debts such as credit cards, unsecured loans, personal loans, medical bills and department store cards. The types of debt that cannot be settled would be secured debt. This category of unsecured debt includes cars and homes. If you stop paying on these, the lien holder will just take them back through repossession or foreclosure. In many cases, even with a repossession or a foreclosure you will still be responsible for some sort of balance due after the fact so beware. The reality is that anything can be negotiated if you are diligent about it. You may want to speak with a couple of debt settlement companies just to see what their policy and experiences have been dealing with different kinds of debt.

Be Aware Of Your State’s Statute Of Limitations, Call your Attorney General For More Information

In most states the Statute of Limitations is 7 years on unsecured credit card debt. If you wait long enough the debt may be uncollectable by the creditor anyway. However in some instances trying to get the debt removed from your credit report may be challenging because the credit bureau may not just wipe the debt off of your credit report. You should speak with your state attorney general to see what the rules are. They debt laws are all different in most states. Your best bet is to not get into debt. Use credit wisely. It is not worth the headache in the future to be a slave to debt. You will appreciate the peace of mind of not having a mountain of debt to worry about each month. Enjoy your life; do not slave away each month trying to pay it.

This Article is designed to be of general interest and should not be considered legal advice.The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

Will Debt Consolidation Hurt My Credit?

admin — Thu, 21 May 2009 16:22:29 +0000

Does dept consolidation ruin your credit? I hear this question a lot. There was a time when doing a debt consolidation program was the same as doing a chapter 13 bankruptcy. If you wanted to buy a home while in a credit consolidation program forget it. A mortgage underwriter would not even look at your mortgage loan. Today the rules have changed. With years of history behind these credit card consolidation programs, the data is showing that people who have enrolled in these programs are not as much of a credit risk as once thought. In fact they are no more risk than any other consumer credit borrower. What does hurt your credit score is having too much debt. When your debt ratio goes to high or you are maxing our your credit cards, your credit score will start dropping quickly.

Tips On Credit Card Consolidation

There are hundreds if not thousands of consumer credit agencies in this country. How do you know if a consolidation company is good or not? Well, I would not take their word for it. You should check them out before you sign up with them. If you remember Ameridebt, they were shut down by the government. Ameradebt had a lot of problems and a lot of complaints from their customers.

Best Credit Card Consolidation Companies

I’m not going to give any recommendations. You just need to do your home work. Check out the Better Business Bureau or your local consumer protection agency. Even a Google search of the company can yield a wealth of valuable information.