Jump to content

CCCS. Go or No?


onlybrad
 Share

Recommended Posts

I have a friend that has 4-5 credit cards and can not keep up with the payments and CCCS has told her that they can get those 25-30% interest rate credit cards knocked down to 6% and she will pay them off in 4 years instead of 14-15years. They said they would remove the remarks from her credit reports once she is done with the program...

What should she do?

Brad

Link to comment
Share on other sites

CCCS and other debt management agencies do about 5-10 years worth of damage. They normally don't get the negatives removed.

Most of us here would say "no" to using CCCS. You can do the same thing CCCS does yourself. Some even call CCCS a CA for the creditors, before Guido at NCO starts handling the accounts.

Link to comment
Share on other sites

CCCS and other debt management agencies do about 5-10 years worth of damage. They normally don't get the negatives removed.

Most of us here would say "no" to using CCCS. You can do the same thing CCCS does yourself. Some even call CCCS a CA for the creditors, before Guido at NCO starts handling the accounts.

Either this lady uses them or she continues to pay on her credit cards for 14years and pays 4-5times more. That wouldn't be the way to go would it?

The creditors won't lower your interest rates for you like CCCS get them to do... What do you mean you can do what they do yourself?

Pease give me some step by steps to tell this lady.

Brad

Link to comment
Share on other sites

I am currently in a CCCS program. Below has been my experience:

1- I was originally told my repayment would take 5 years-In actuallity it would take 7 years. I didn't realize it until I was 4 years in the program.At this point since I have been in the program with for 4 years with on time payments I negotiated directly with my only remaining creditor- MBNA directly down to 7% from 15.9%. I did this by writing to the CEO.

2- I would suggest going to the Bankrate web site and using their calculators to see if the 4 year repayment is legit. CCCS should tell her how much each creditor will receive. It will most likely be that one gets paid off before the rest and that payment gets put towards another card or cards. It will take some time to figure all the cards out but you will get a good idea if what they are saying is plausible.

3- In my experience- the accounts were brought current and only 1 made a notation on my report- Citi stated in the comments section "account currently managed by consumer counseling agreement"- this was removed once it was paid off. All the accounts were "closed by consumer"- which kills your utilization but I'm guessing that is the least of your fiends worries.

4- Depending on the number of late payments before entering CCCS they will remain. As an example I have 3-120 day late ,9-90 days lates with MBNA but all are 4 years or older.

Finally she should check if the counseling company is one that a bankruptcy court will recognize as having met the new requirements - in case the repayment schedule can't be completed.

Hope this info helps.

Link to comment
Share on other sites

I did it and it screwed me royally. They routinely didn't make payments--sticking me with both lates and late-fees--and some payments were HIGHER than they were before. My monthly payment was much higher too. I even had two cards with the same creditor that started off with the same balance, payment and rate, yet somehow within a few months there was $1500 difference between the balances. I finally realized that the original interest rate on one of them kept reappearing and being added to the balance even though it had supposedly been negotiated down. They couldn't/wouldn't explain this to me or fix it. I had to keep a constant watch on every account.

By the end of this rocky ride (I tried it for a year), I was in even worse shape and ended up filing for bankruptcy. Before credit counseling I had no lates at all. After, I had several 30, 60, 90 and 120s because they did fail to make payments or ensure that payments were credited, several times.

Link to comment
Share on other sites

I am currently in a CCCS program. Below has been my experience:

2- I would suggest going to the Bankrate web site and using their calculators to see if the 4 year repayment is legit. CCCS should tell her how much each creditor will receive. It will most likely be that one gets paid off before the rest and that payment gets put towards another card or cards. It will take some time to figure all the cards out but you will get a good idea if what they are saying is plausible.

How much was CCCS taking off the top for their "expenses". Some CCCS's according to the info on this site, were taking a majority of the payments for their expenses and paying little. Even keeping accounts in "late" status and letting them go to CA.

3- In my experience- the accounts were brought current and only 1 made a notation on my report- Citi stated in the comments section "account currently managed by consumer counseling agreement"- this was removed once it was paid off. All the accounts were "closed by consumer"- which kills your utilization but I'm guessing that is the least of your fiends worries.

Agreed.

4- Depending on the number of late payments before entering CCCS they will remain. As an example I have 3-120 day late ,9-90 days lates with MBNA but all are 4 years or older.

Finally she should check if the counseling company is one that a bankruptcy court will recognize as having met the new requirements - in case the repayment schedule can't be completed.

Hope this info helps.

Definitely on the BK court in case it goes bad to worse. Once you are out of CCCS un4givn, you should be pretty close to 7 years on the MBNA so it should all drop off.

Link to comment
Share on other sites

My CCCS takes 35/month. I pay 622/month direct debit to them. MBNA gets 587 a few days later- I check on line through MBNA's web site. I also pay 25/week directly to MBNA thru their website. I tried paying to CCCS but they only disburse funds once a month. The idea being if I lower my avg daily balance- I pay less interest.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.