How do credit counseling services work? Can they really reduce debt by half?
Consumer Credit Counseling Services or CCCS work under a few different business models.
1. There are Non-Profit CCCS and for profit CCCS.
2. A Non-Profit CCCS can only charge for a credit report and a max of $25 for a consultation fee.
3. A CCCS negotiates a new payment schedule with your creditors. This can include but is not limited to renegotiating the rates on your current bills.
4. A CCCS does NOT bring your bills current upon enrollment.
5. A typical CCCS plan will take 2-4 years to complete
6. A CCCS is treated by a lender of new credit worse than bankruptcy.
7. You must complete a CCCS plan before applying for new credit.
If you would like more information on Consumer Credit Counseling Services take a look at www.crediteducation.org