Client Testimonials
First of all, I wish to thank you and your staff for your services. They have really paid off. I am very happy with the progress that was made on all my credit reports. I recently was able to refinance my house at 5.375% interest which was a savings of almost 2 points. ...
Q & A - Questions and Answers
What Are the Pros and Cons of Using a CCCS?
Pros of Using a CCCS
- Monthly bills are conveniently paid for you
- You only make one low monthly payment
- Credit Counselors will negotiate with creditors to reduce interest rates and monthly payments
- Credit Counselors will generally get creditors to waive late and over-the-limit fees
- As mediators between you and your creditors, harassing collection calls and notices will stop
- Provides immediate relief
- Better than bankruptcy
Cons of Using a CCCS
- You are still obligated to pay back the full balance on all of your debt
- It will take substantially longer to pay off your balances, generally 4-7 years
- Although lower, you are still being charged interest on all of your accounts
- You are restricted from using credit while enrolled in a CCCS plan
- An 8% to 25% commission fee will be charged on the money they "save you" in the end (you could have applied their commission to your actual debts instead)
- They typically charge exorbitant set-up fees (or "donation" fees if the CCCS claims to be a non-profit)
- The debt relief is only temporary and will end up costing you more in the long run
- YOU WILL DAMAGE YOUR CREDIT
Remember, the only time you should consider using a CCCS is when your financial situation continues to spiral downward, despite other attempts at resolution. You should be nearly bankrupt before considering hiring a third party to handle your debts for you.
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