Discussion in 'Budget Board' started by Mellie2162, May 25, 2007.
Has anyone used them to get on a budget and get control of debt? Is it worthwhile?
I used a non profit one about 8 years ago and it really helped! They put us on a "plan", got all of our interest rates lowered or wiped out, and we were debt free in sbout 18 months. We still use their budget formula and we're still credit card free. The only debt we have is our mrtgage and our car payment and our monthly bills. I highly recommend it. Be sure to go to a non profit. You should not have to pay anything to get out of debt. Good Luck.
Make sure you have exhausted all other alternatives (ie. calling your creditors yourself & asking for a reduced payment/interest plan)...
CCCS is a HUGE hit on your credit rating... at my employer (a credit card company) it's viewed in the same light as a bankruptcy would be.
It is often looked at by credit card companies and mortgage companies in the same manner as a bankruptcy. This actually make bankruptcy seem a better option because it is done, the debt is gone and you start over. With a counseling service you continue to show using them and carrying the debt for so much longer.
I would avoid it if at all possible. My advice: head over to savingadvice.com and post the details of your situation - income, expenses, debts, interest rates, all the nitty gritty. Many helpful people will help you form a plan to reduce your spending, pay off your debts and start putting money away for the future. It is generally a very non-judgemental group as many of them are in, or have been in, similar situations themselves. Best of all, it won't show up on your credit report.
I, personally, have not used CCCS. HOWEVER, a very close friend of mine did. Her sibling declared Bankruptcy at the same time she was using CCCS. It took my friend years longer to repair her credit than the sibling who declared bankruptcy. They were able to get loans much sooner and actually at a better rate than the friend who was repaying her debt! Doesn't seem fair that the person repaying their debt is penalized worse on their credit report than the person writing it all off.
Based on what I have been told by my friend this is something you want to do only as an absolutely last resort. Good Luck
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