We met with a CCCS counselor in the past and she pretty much it explained it the same way. The underlying issue is that the creditors generally are not willing to work out a payment plan unless you are already behind. And the more behind you are, the less they may be willing to accept. If you are current on all your payments, they often aren't willing to work with you (the creditors, I mean). Had we needed to follow through with a CCCS DMP (thankfully we did not), my understanding was also that they recommended not making your payments for a period of time at the beginning.
If the creditors accept a negotiated settlement (so you pay them back less than what you originally owed), I believe that impacts your credit anyway.
But definitely CCCS is the way to go vs. those debt consolidation places you see on TV all the time.
