• Will using CCCS impact my credit report?
• What is your privacy policy?
• How do I know if I need to see a counselor?

After reviewing a client's financial situation, a CCCS counselor will make recommendations regarding debt reduction. When necessary and feasible, CCCS can enroll a client in a Debt Management Plan (DMP) whereby the client makes one payment per month to us, and we in turn disburse the individual payments out to the client's creditors. Our DMP's serve the dual role of helping you repay your debts and creditors to receive the money owed them.

HOW MUCH DOES A DEBT MANAGEMENT PLAN COST?

Most CCCS agencies charge a nominal administrative fee for this service. It will vary from state to state. In California, fees are on a sliding scale not to exceed $25 per month.

HOW IS CCCS FUNDED?

Most of our funding comes from voluntary contributions from creditors who participtate in Debt Management Plans. Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund our agency. These contributions are usually calculated as a percentage of payments you make through your DMP--up to fifteen percent of each payment received. However, your accounts with your creditors will always be credited with one hundred percent of the amount you pay through us, and we will work with all your creditors regardless of whether they contribute to our agency.

HOW LONG DOES A DEBT MANAGEMENT PLAN TAKE?

Clients who complete the Debt Management Plan will repay 100% of what they owe in a general time frame of 3 - 3 1/2 years; in some situations the repayment time can take as long as 48-60 months.

ARE THERE OTHER ADVANTAGES TO A DEBT MANAGEMENT PLAN?

Some creditors provide incentives for their clients to use our Management plans: lowered or waived interest and finance charges, for example. Some will even re-age the accounts if the clients have fallen past due in their payments. Not all will do this, and some do it on a case-by-case basis only. Also, due to CCCS's reputation nationally, many creditors prefer their clients use our services.

HOW DOES USING CCCS IMPACT MY CREDIT REPORT?

CCCS does not report to credit bureaus. The impact on your credit report of participating in a Debt Management Plan will depend on several factors: the status of your accounts to begin with, whether or not a given creditor re-ages client accounts, and the various reporting policies of individual creditors. For example, if the credit report is already damaged due to late payments, charge offs, etc., then a CCCS payment plan will do no further harm and may even improve it for those creditors that bring the accounts current. If the credit report is in good standing to begin with, and an individual creditor agrees to accept lower than normal monthly payments, and that creditor does not re-age (bring current) the account during the CCCS management time, then the account could begin to show delinquent. Whether or not this happens depends entirely on the particular creditors you have and on their reporting guidelines. It may not happen at all.

Also, some creditors report to the bureaus that the payments are being received through a counseling agency; some do not. It is possible no one would ever know. How future creditors will view a CCCS Debt Management Plan depends on the creditor. Some will think it's great--this person made sacrifices and took responsible action; others may see it as an increased risk factor. It will vary from one creditor to another. It's always a good idea to pull your own credit report prior to applying for a new loan. This way you can provide explanation for any questionable items right up front.

CAN I GET CREDIT AGAIN?

There are a number of creditors who participate in the National Foundation for Consumer Credit's Credit Recovery Program for CCCS clients. When a client completes the management plan, these creditors will extend credit once again under a special program that doesn't use the credit report as its primary criterion for granting credit.