Consumer Credit Counseling Services | Credit cards

I find it very unusual

I find it very unusual that anyone would want to deal with a CCCS, knowing that they are receiving a “fair share” (commissions) from credit card companies. It reminds me of an old saying, “he who pays the fiddler, calls the tune”. In fact, I read an article from the IRS recently. It stated that the IRS is now very cautious about giving out Not For Profit standing. They accused the CCCSs of really being “debt collectors”, which in my opinion, they are.

If anyone doesn’t believe this, why not ask a CCCS this “fair share contribution” and wait for the answer. Notice how they answer it…

Can anyone honestly tell me how a so-called Not For Profit organization like CCCS can survive on a client’s “voluntary” contribution of $30 per month per client? I don’t think so!

CCCS is not a debt elimination company, they are a debt management service. Big difference.

Sorry to the blog for putting CCCS in the debt elimination catagory … It IS a debt management company. I think of them as debt elimination only because alot of years of due diligience and paying them off they were(my debts) eliminated!

Well, for those of us who don’t want to take the easy road and declare bankruptcy I felt in the 4 years that I dealt with CCCS they were more than helpful. I, honestly, didn’t care how my debt was managed. I received the desparately needed assistance from them to deal with the creditors who were so cut throat and nasty and called every day.

Being so far in debt and having your house threatened to go into foreclosure having CCCS help us with all the other creditors was such a lift from us. In the mean time while we under the debt management program we were able to develope a budget and begin to see the light without the constant nag of creditors! In my opinion ALL the creditors are crooks! They deserve to pay companies like CCCS,(if that is the case, I don’t know that) or any other. For the creditors to continue offering credit to people that are over their heads, or to college students or to the elderly when they can’t make the payments… and they know this is… completly wrong of them.

I know that people are going to disagree and that is fine. I won’t have a credit card now unless I use them, and don’t pay them interest! I learned they aren’t worth the pain and suffering if I can’t pay the bill when it comes.

But to get back to the point, CCCS worked for me and lots of other people. As, I said in my opening remarks it may not be for everyone. But if you are so far over your head and dealing with the creditors directly to come up with some payment arrangements, decreasing your interest rate or whatever and the creditors decide they won’t accept your offers then it is alot better than loosing everything you have. Working with them at least allowed us to surface, work hard and stop those annoying creditors calls.

Credit cards

Save money or Pay off Credit Cards?

I’m wondering if any of you have any articles or books you can refer me to. I am 29 with 2 kids, hubby and house. We’ve accumulated some credit card debt, and a HELOC as well. But we also save money for retirement, to Roth IRAs, 401K and 457 and 529 plans for the future. My question is should I stop our monthly deposits to these “savings” accounts momentarily and use that money to pay off the debt?

See if you can increase/rollover deposits to 401K and IRA an take what’s left from 457 and 529 and try to pay down debt. We temporarily stopped our savings and 529’s for the kiddos until we get out of debt. The more money we have to go against the debt the quicker it gets paid off and the more we will be able to save in the future.

Credit cards | Debt settlement

Credit Card Settlement

I have been paying minimum payments on 2 closed credit card accounts. In the next couple of months, I’ll be getting a lump sum of cash, to then pay off some debt.

I’m wondering if anyone knows if I can call the CC company and offer them a set amount to settle the account. Do they do that? If they would, does that get reflected on my credit report? How low can I offer? I used to be months behind on payments, but have since caught up, and pay my minimum payments on time. Thanks!

Yes you can call and ask for a settlement but from what I understand you may not be successful if you are not behind. I am not 100% sure but you should always call and ask.

It does reflect on your credit and it does reflect negatively. I confirmed with one of my creditors that the difference between what the balance was and what you paid will reflect in a 1099-C which means that you will have to pay taxes on it.

There has been discussion on how low you can offer. Some have said to start as low as 20% and possibly expect to pay up to 35-40% but I am not sure and I don’t have any personal experiences with it. At least yet. That’s what I am working on now. Settling my debt.

I used to be months behind on payments, but have since caught up, and pay my minimum payments on time. Thanks!

First there is no such thing as “on time payments” on a closed account. Once an account is closed the balance is due in full immediately.

I’m wondering if anyone knows if I can call the CC company and offer them a set amount to settle the account.

Yes you can and that is an excellent idea. As for as them accepting a settlement that will depend on if they think they can get the full balance from you. By paying them each month you have put yourself in a position of being one that they can get the full balance out of. I know you were trying to do the right thing but the CC companies NEVER try and do the same so you really have to learn to play harder ball than them.

If they would, does that get reflected on my credit report?

Again depends on the CC company and the terms of your settlement. I would suggest a pay for delete settlement.

How low can I offer?

Whatever you want! That is what is great about “settlements”. You start the ball rolling and let them come back and keepgoing until you both agree. Just make sure you get it in writing! I suggest you start at 10% of the balance owed.