Though we typically advise against dealing with a credit consolidation company, the one exception to the rule may be Consumer Credit Counseling Service (CCCS). Yes, like other credit consolidation companies it is funded primarily by the creditors themselves, which may suggest a stronger allegiance to the creditors than you. It’s also a “non-profit,” which would normally instill confidence, but in the case of most consolidation companies it is little more than a marketing tactic to disguise an organization that may do your credit more harm than good.

Could it be CCCS is different?

Yes.

We have written a great deal about CCCS here at CreditInfocenter.com, primarily suggesting you use it only as a last resort and alternative to bankruptcy. However, if you are drowning in debt with no salvation in sight, CCCS could prove a valuable asset to your financial future.

Of course, before seeking out the services of CCCS, be sure you have exhausted all other more ideal alternatives that may help you pay down your debt on your own:

• Go over your expenses with a fine-tooth comb and cut what you can
• Ask for a loan from a family member or friend
• Sell your second car
• Pull equity from your home refinancing
• Take out a non-secured signature loan
• Sell your home
• Cash out your 401K/retirement
• Sell heirlooms and other valuables

You may also try settling your debt yourself.

Once you have considered all of these possibilities, only then should you consider contacting CCCS. Here’s what to expect:

1. A meeting in which a counselor will analyze your income, expenses and overall financial situation, including potential solutions and recommendations
2. Determination whether you qualify for one of their Debt Management Programs, meaning that after paying all of your living expenses each month, you have enough leftover to pay back what you owe within 48 months
3. Payments made to CCCS directly, which distributes payments to your creditors
4. $10 one-time set up fee to CCCS, as well as a monthly fee of no more than $10 “to offset operating expenses”

Regarding any reservations we have expressed about the organization, the CCCS Marketing and Education Director for Consumer Credit Counseling Service of Idaho took the time to address these issues point-by-point in a letter to us, which you may read in its entirety here and judge for yourself.

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