Well, let’s take a look. Credit counseling is when you use a company to manage payment of your consumer debt for a prescribed period of time – typically 3-5 years. In this article we’ll review the pros and cons of credit counseling to help you see if it right for you. Pros of Consumer Credit Counseling Pro 1 – “Re-Rating” your delinquent accounts. If you enter into a credit counseling program with delinquencies already on your credit report, it is possible after a period of time to have those accounts “re-rated.” The credit counseling company can negotiate with your creditor to get the creditor to agree to “re-rate” or “re-age” or “cure” your account once they have received a pre-determined number of on time payments. Once you have made these payments, the creditor will note on your account that you are now paying them as agreed. You want your credit accounts to get “re-rated” as quickly as possible. This process is a “line in the sand” from being delinquent to having good credit again. The more on time payments you can show on your report the better and the quicker your credit bounces back. Pro 2 – Simplified payments. Generally, you wouldn’t enter into a credit counseling program if you only had one credit account that you wanted to manage. Most of the credit reports that I have seen where my customer was in credit counseling had more than 5 credit accounts in the program. With so many payments to worry about, it’s no wonder why some payments get missed, etc. In a credit counseling program, you typically make one payment to the counseling company and they in turn pay your creditors. Pro 3 – Chances are if you had any delinquencies with your credit cards you are likely to be paying an interest rate greater than 20% on them. Creditors are more likely to reduce your interest rate if they know you are in a counseling program. They might not even charge you interest so that you can pay your debt to them. This will allow you to pay them off more quickly.
Is Ameridebt still in business? Ameridebt was forced to shut down its debt consolidation operation as part of a settlement with the FTC. The Federal Trade Commission charges that it deceived consumers into paying at least $170 million in hidden fees. The FTC charged Ameradebt with misrepresenting that it was a non profit credit consolidation company and that it show consumers how to manage their money for no up front fees. The FTC also charged Ameridebt with deceptive business practices and with violating the Gramm Leach Bliley act by not providing customers with the required privacy notices.
Is debt consolidation through a credit counseling company bad? Continue Reading »
Is a non profit CCCS company free? You have seen the ads on TV for consolidating your debt. Their claim is that they are a non profit foundation that is there to help you consolidate your debts into one low monthly payment. It sounds like it is free but it isn’t. A non profit debt consolidation company does charge a fee for their services. It is usually a monthly fee that is part of your payment. Many consumers are unaware that part of their monthly payment if a fee for the debt consolidation company. Continue Reading »
What is the best debt consolidation company? I think it might be better to ask what can I do to get out of debt other than signing up for credit counseling or a debt consolidation loan? If own a home and have equity in it, you have the ability to do a refinance and pull money out to pay off your bills. Continue Reading »
What does CCCS mean? CCCS simply stands for consumer credit counseling services. They will consolidate your debt and lower your interest rates. They can have you out of debt in 4-6 years. Once you have missed a few payments, your credit card companies will raise your interest rates. Some credit cards will charge you over 30%? They can do this due to the universal default rate that is in your credit card contract.
At this point a request for lower rates will do nothing. They have you pinned against the wall. Your only option for lower interest rates is to do a credit counseling program.
If you are considering debt consolidation, you may want to look at a debt negotiation program as an option. For a no hassle debt review call 1-888-368-6668 or go to DebtNegotiationZone.com and fill out the request form.
How Does Consumer Credit Counseling Work?
This information going to discuss the advantages of doing a Consumer Credit Counseling program. You may have heard of debt consoladation referred to as Consumer Credit Counseling, CCCS or debt management. To clear up the confusion, they are pretty much the same thing. Doing a debt management program is much different than doing a debt settlement program. In debt settlement you are negotiating down the amount of principal to pay back and debt consoladation you are negotiating the interest rates. In consumer credit counseling you will pay all of the principal plus interest. Debt negotiation will save you a lot of money in the principal but your credit score will get wrecked during the process. In debt negotiation you will pay back less than you originally borrowed. As you can imagine your creditors do not like that too much. Continue Reading »
How Does Debt Consolidation Work?
This article is about the advantages of doing a debt consolidation program. You may not be aware of this but debt consolidation, CCCS, credit counseling and consumer credit counseling are basically the same thing. Doing a debt consolidation plan is different than doing a debt settlement program. In debt settlement you are reducing the amount of principal that you will pay back and in credit counseling you are negotiating the amount of interest you will pay back. In consumer credit counseling you will pay all of the principal back plus some interest. Continue Reading »
Debt Consolidation vs. CCCS what you need to know
You have probably seen the TV commercials promising hope for those who are overwhelmed by their debts. CCCS or Consumer Credit Counseling services offer what seems to be the golden pathway to getting yourself out of financial trouble. It used to be that one of the debt consolidation companies in the industry was Ameridebt. This is the company that most people think of. They are not longer in existence any longer. Continue Reading »