what is CCCS
Posted By: Emily Ayn on 2008-10-15
In Reply to: in the same boat... - Sue
Hi, I am always afraid of those ads I always hear on the radio about lowering your debt by 70%. never believable. Will you tell me how it goes with them? I am about 12K in debt, and about 9K of it is from back taxes owed which was devastating when I learned that... but thanks to being a self employed transcriptionist... I know take 30% of EVERY paycheck out to taxes. and WOW, my world came crashing down this year when i saw how much i really made... it's pathetic for the hard work i put in and now im drowning in debt at the age of 27 and very very upset about it. I can't even pay down the cards because i can barely pay my bills on this measly salary!
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One time years ago we did CCCS.
It did help with interest rates. We made one payment instead of many, but not all companies will "play along" with CCCS. It all depends on what you're looking for, but CCCS makes you cut up your cards and close accounts (I think) so that you can no longer charge. It does put a dent in your credit score as well. I'm not so sure how it works for late payments already either. We were current, but struggling and needed help with all of that interest. It worked for us. Have you considered snowballing your credit debt? I wonder if this could work for you?
Before considering the CCCS or debt relief (sm)
places, first call the companies. If you haven't been charged off yet, most will work with you and have hardship programs. The accounts will likely be closed, but after 3-4 ontime payments they will "re-age" to show as current, will lower the interest rate so payments are lower and you will pay off over a 4-5 year period (in most cases, you can't use the cards as acct will be closed to further charges in exchange for drastic reduction in interest rate). Going with CCCS or similar, has the same effect as a BK, even worse, on your credit rating. The accounts will report as "closed, paying under debt management plan." While bankruptcy is an option I suppose, if you're a homeowner or have any assets, you'd have to file Chapt. 13 which will allow for some payback. I'd call the companies first and lay out your situation and see what they suggest. The credit industry is in a mess right now so they are willing to work with you if you're upfront and showing good faith.
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