Hopefully there is light in the en of the tunnel (credit cards, loans)

[redwine]

I took my first step today. I called my local CCCS office and scheduled an appointment. Hopefully there is a light in the end of the tunnel for me too.

For those of you who knows from experience. When CCCS consolidate your debt, do they normally only do credit cards? I have 2 consumer loans with an 12 % interest rate. They are schedules to be paid off in 2010 and 2011. Should I leave them alone or include them in my consolidation? I know this is a question for CCCS but I am just asking in case some of you have gone threw this before/

Thanks in advance

[IonRedline08]

They don't consolidate your debt......

They just basically make payments for you and you pay them. As far as I am aware, if your consumer loan places accepts their "proposal", they will take the payments

[redwine]

Originally Posted by IonRedline08

They don't consolidate your debt......

They just basically make payments for you and you pay them. As far as I am aware, if your consumer loan places accepts their "proposal", they will take the payments

Ok, if I wanted to do extra payments to get let say one of my cards or loans paid off faster, can CCCS do that for me?

[Dee74]

Why do folks pay someone to do something they can do themselves with a call to the company or make the extra payments yourself?

[redwine]

Originally Posted by Dee74

Why do folks pay someone to do something they can do themselves with a call to the company or make the extra payments yourself?

Because some peoples situation is different from others. Some people have explored several options and find that there are easier one way or the other, whatever choice they make. My question is, why do people have to be so judgmental??

[IonRedline08]

Originally Posted by redwine

Ok, if I wanted to do extra payments to get let say one of my cards or loans paid off faster, can CCCS do that for me?

You could... but let me explain something

The reason CCCS and their ilk exists is that it is a business.. even if they are non profit (so to speak).. or not for profit is more like it..

They charge something called fair share to the credit card companies. Say you send CCCS 100 for one credit card. CCCS will keep like 15 of that, and send in 85 to the credit card company. 100 will show reflecting on your credit card statement, but the CCCS is making money off of you, you just dont know it.

If you send extra in, they will tell you that it HAS to go through them. That is the reason.

Some companies do not deal with CCCS or their ilk because of this. Also, some are not the worlds greatest to get your payment in on time.. so you need to keep a real watchful eye of this stuff.

I used to work for a huge credit card company, and we always used to joke that people that do CCCS have no idea that they are really like "Collections Agents" for us. We kind of pay them to make sure you are paying.

Thats why, sometimes, it is way better to try to get involved with a credit card's hardship program instead, it is about the same, with less strings attached.

[redwine]

Originally Posted by IonRedline08

You could... but let me explain something

The reason CCCS and their ilk exists is that it is a business.. even if they are non profit (so to speak).. or not for profit is more like it..

They charge something called fair share to the credit card companies. Say you send CCCS 100 for one credit card. CCCS will keep like 15 of that, and send in 85 to the credit card company. 100 will show reflecting on your credit card statement, but the CCCS is making money off of you, you just dont know it.

If you send extra in, they will tell you that it HAS to go through them. That is the reason.

Some companies do not deal with CCCS or their ilk because of this. Also, some are not the worlds greatest to get your payment in on time.. so you need to keep a real watchful eye of this stuff.

I used to work for a huge credit card company, and we always used to joke that people that do CCCS have no idea that they are really like "Collections Agents" for us. We kind of pay them to make sure you are paying.

Thats why, sometimes, it is way better to try to get involved with a credit card's hardship program instead, it is about the same, with less strings attached.

I think they charge 20 or 25 dollars flat a month.They are a part of United way and that's how they are funded. At least that's what people that used them told me. However, My one credit card charge me 1 dollar for every dollar owed on my card to be enrolled in credit protection program. That would cost me 80 bucks a month. I know, I have made some really bad choices. Thats what I am determent to fix it.

[FarNorthDallas]

Not all credit card companies will work with CCCS. If the CC companies do they might knock off late fees or lower interest rates or take off other fees in order to get the total amount owed down. If they don't, there is nothing CCCS can do to get the amount lowered. Then you pay a monthly amount to CCCS and they distribute it to the companies you owe money to. Don't get your hopes up. You have to have a certain income to handle the monthly payment. They may not be able to help you at all just depending on who you owe and those companies' willingness to work with CCCS.

You can call your creditors and ask them the same question. What can you knock off? Tell them you are thinking about bankruptcy and they might help you out. It's the same thing CCCS is doing.

[IonRedline08]

All credit protection does is protect you if you lost your job and stuff like that.

Also, they charge you $25 a month. Yes, but then the credit company pays them too to collect that money. That's what the fair share is.

And, as the person said above, they may not work with everyone. Some Credit Card companies don't because it is a big hassle for them, or because a lot of the CCCS companies are not the most reputable.

You really, really, should call the CC companies first and see if there is anything they can do for you. You may be able to do the almost same thing they are gonna do, and use that 25 to pay it down even more

[Karla with a K]

Good morning redwine and all of the others posting here
There have been some good points brought up so a fair warning that this is probably going to be a long post.

Redwine
Take all of your debt information with you to your appointment. They will need to have a total picture of your situation. As IonRedline08 said if your consumer loan company accepts the proposal they will take the payments.

The average % that CCCS works with is between 2 & 2.5 % of your balance. I have also seen the interest reduced to anywhere from 6% to 0 %.
So lets say everything is accepted into the program on $23,000 your looking at a total payment of $460 to $575.
I looked at your other posts and wasn't able to find if the $500 a month your paying for your secure debt is your consumer loans.

"Why do folks pay someone to do something they can do themselves with a call to the company or make the extra payments yourself?"

ok as far as this statement,

First because you stated that you have never been more than a couple days late the companies themselves won't put you on a hardship program. Because in their "eyes" your paying on time so they do not see a hardship. As a matter of fact some companies have different "hardship programs" based on how past due the accounts are.

Not to go off track but one of the "tricks" the for "profit John Doe" type of debt relief companies, that seem to be springing up over night, use is they have you not to pay for a couple months or will hold your funds until your late so that they can get you into programs. Oh and did I mention they aren't very forth coming with this little bit of info.

Also unless you know the thing to say chances are the person you will speak with either be someone in one of their outsourced call centers or a Customer Service rep who may not know if they have a hardship program and if they do their "call guidelines" won't allow them to transfer you again because in their eyes your not late.

I know it is a catch 22 situation.

The best advise is to go in and talk to the CCCS folks. Nothing will be said or done with regards to your credit cards until you have agreed to a program. They know the creditors that will and won't work with them. Yes companies are required to pay a portion of the fee, that along with the extra work is why some companies are not willing to accept the program.
They will also determine if you have the available funds to get into the program.
You will then be able to decide if this will work for you.