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.
