Consumer Credit Counseling Service – An Overview

Consumer Credit Counseling Services (CCCS) provides budgeting help, financial education, and Debt Management Plans (DFMPs) to consumers with unsecured debts. They specialize in helping people eliminate debt and improve their credit scores. CCCS works closely with the creditors and debtors. All CCCS agencies are strictly non-profit. Many are supported by the credit card issuers’ organizations, who have agreements with CCCS to provide debt education and DMPs.

A consumer credit counseling service can provide the following types of financial services: debt analysis; credit counseling; or, bankruptcy advice and representation. They may also refer you to a bankruptcy attorney, should you choose to file for bankruptcy. Although bankruptcy is not the best way to manage your debt situation, it is the quickest way out of it. You will lose credit report and most likely your social security number.

A debt management plan (DMPS) can be used by anyone who has trouble managing their finances. A consumer credit counseling service can help you make one. If you are overwhelmed with debt, an agency can help you decide what kind of DMPS will work best for you and your circumstances. There are several kinds of DMPSs. The kind that is right for you depends on how many creditors you owe and how much you owe them.

Some counselors offer their services online or by phone. If you would rather talk to someone personally, check with each counselor to see which ones offer free consultations. In most cases, a fee will be charged. Some counselors charge a monthly fee and have detailed monthly expenses outlines for their clients.

Nonprofit organizations such as government agencies may also provide free budgeting assistance. Check with your state or local government office to find out if they provide this type of financial education. You may be eligible for Medicaid or other federal aid. Your local consumer credit counseling service can tell you what programs you are eligible for. In some states, the state government funds some of these services.

Be sure to check with your credit counseling agency about its privacy policy before sending in any personal information about yourself or your debts. The agency may use the information you give to provide you with a debt management plan. It will give you detailed instructions about the steps you need to take to get out of debt and stay out. Before you sign up for a debt management program, make sure to compare at least three other counseling agencies. Each agency will offer different kinds of financial education. Choose the one that fits your needs best.