Need advice quickly about CCCS!

iVillage Member
Registered: 01-04-2005
Need advice quickly about CCCS!
11
Mon, 02-14-2005 - 2:23pm
I don't know what to do - I need some serious advice. I signed up for the CCCS Debt Management Program but they returned my forms saying my husband needs to sign as well because he is listed on one of my accounts. I don't want his credit ruined!!! Someone told me CCCS on your credit report is just as bad as a bankruptcy - how is that fair? Can anyone help with personal experience? thank you

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Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Mon, 02-14-2005 - 3:01pm

I don't think there are any hard and fast answers to your questions. Every CCCS agency has its own way of working with lenders, and different lenders have their own rules. When I went on my plan, *every* credit card and unsecured loan but one *had* to be on it, or MBNA would not lower its interest rate to something reasonable (from 24.99% to 7%). Now, most of the credit was in both DH's and my names, but one was mine-only and one was his-only, and all had to be on it. Both of us had to sign everything, and it affects both of us.

Now, as for CCCS being equal to bankruptcy, I don't see it. Some lenders view it as positive (you're taking action to pay all your debts), some negative (you had too much debt to begin with), some neutral (it doesn't matter as long as you're paying it). I subscribed to myFICO and got my credit ratings from all 3 agencies, and in no way do I have a credit score for someone who's filed bankruptcy - and I've been on CCCS for 7 months now, so the info is current. I actually have an above average credit score. In fact, of the 8 credit cards/lines of credit being managed by my CCCS plan, only one is shown on *one* of the 3 agencies' reports as being managed by a debt management program. That score is slightly lower than the others, but only by about 30 points - certainly nothing like bankruptcy.

Remember, "for richer or poorer, for better or worse" - you're in it together.

Kelly

iVillage Member
Registered: 01-04-2005
Mon, 02-14-2005 - 3:13pm

thank you. I am seriously having an anxiety attack here. I just do not know what to do. I went through our cc's and 4 of them are over limit and have sky high interest rates. I know we need CCCS. I am just scared to death. I think what bothers me the most is that if we just paid off this debt we would be in very good shape financially - very good shape except for a horrible credit score from CCCS.

sorry I'm rambling, but I seriously do not know what to do. thanks for listening!

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Mon, 02-14-2005 - 3:34pm

I don't know anything about CCC. I just wanted to suggest, can you not include the credit card that has your husband's name on it?

MYM

iVillage Member
Registered: 02-06-2005
Mon, 02-14-2005 - 5:21pm

Here are my quick two cents' worth, though I've never done CCCS myself.


1.

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iVillage Member
Registered: 12-15-2004
Mon, 02-14-2005 - 7:52pm
My first post ever! To answer your question with my (limited) knowledge and experience.
I work for a mortgage company. We do not touch anyone in CCCS until after they are out for two years. The reason is much like the previous poster stated, with bankruptcy, you are "accepted" and then you can not enter into bankruptcy again for a certain amount of time (My explanation is sketchy-but we typically handle A credit and A minus credit so not too many bankrupts come along that fall into that category) It is my understanding that with CCCS, you can kind of "make" your own terms (i.e. leave this card out, keep using that card for emergencies). And yes, as the previous post stated, you are agreeing to repay, but you are not repaying on the prior agreed terms. I have no bad feelings about CCCS, but from a person who pulls credit reports daily- I have seen the effects on some peoples scores, but I am not sure if in the eyes of the credit score statisticians, it is any better or worse than the alternatives. My experience may be limited to my part of the country, and certainly other people may disagree! I am sure many people have different experiences. If you have a house and cars, and don't anticipate needing loans for either for many many years, then do what is best for you. My 2 cents for what it is worth. Again, my first post---
iVillage Member
Registered: 03-27-2003
Mon, 02-14-2005 - 11:15pm

Here is my own personal experience. We went through the original Consumer Credit Counseling Services about 11 years ago--I think they are called something else now. It was a great experience for us.

I think it was about 4 years after paying them off, when we applied for a home loan. It didn't have a negative effect on our credit report at all. Our loan officer(who use to work for CCCS)said that in some cases it is seen as a kind of positive; much better than a bankruptcy; it shows you are trying to get things under control.

Of course that was a few years ago, now we have 5 times more debt than when we went to CCCS originally(boy we thought at $5,000, are debt was out of control)

I don't know how the companies are now, there are so many different ones.

Dana

iVillage Member
Registered: 12-07-2003
Tue, 02-15-2005 - 12:48am

Here's an article I just read about credit counseling services and some of the potential pitfalls.

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Tue, 02-15-2005 - 8:53am

You know, it might have something to do with what kind of payment agreements you get with CCCS. Under my DMP, I have to pay the same monthly payment I did before on each credit card, but since I have a lower interest rate, the balance gets paid off faster. On all 3 of my credit reports, everything is shown as being "paid as agreed" except for one item on one report that says it's being managed by an agency. I have the money automatically debited from my checking account every month the day after I get my paycheck, and I check my statements every month. All my accounts are being paid as CCCS said they would be.

I went to CCCS because Bank One, which now owns 3 of the 6 credit cards on my DMP, refuses to negotiate with an individual. They told me they would *only* lower my interest rate if I went through NFCC or CCCS. I have two lines of credit that are being repaid through my DMP and there was no change in the interest rate for those, they just get paid every month by CCCS instead of by me.

I have heard from other folks on the board that you won't be able to get another credit card, but you might be able to get a collateralized loan, e.g. an auto loan or a mortgage. I don't know from personal experience, as I haven't applied for any new credit in years.

Now, this is not to say that CCCS is right for everyone. I had an awful experience on the phone with the first agency I called, and I could just imagine the nightmare they could have created. Also, being on a DMP *did not* lower my monthly payments, it just gave me interest rates that meant I will actually be able to pay off my debt. I was not looking to have any debts forgiven, just to get more reasonable interest rates. My credit score, while not an A+ rating, has not changed since I've been on CCCS, and is in the B+/A- range, what you would expect from someone with too high a debt/income ratio, but not something like bankruptcy.

Kelly

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Tue, 02-15-2005 - 11:09am

Here is a link you might find interesting: http://credit.about.com/od/counselingagencies/a/081104.htm

Kelly

iVillage Member
Registered: 01-04-2005
Tue, 02-15-2005 - 11:10am

Thank you all for your advice. After considering everything, I have decided to mail my forms in today. It is our only chance to pay this off in 5 years then concentrate on our retirement.

I pulled our credit reports yesterday and will continue to monitor them. I just keep feeling this will be either the best decision I have ever made, or the worst!

We own a home already, and I can't see us moving for a long time. So I'm not concerned about getting a mortgage in the near future.

Thanks again to all of you. I'll be on this board for a long time to come and will keep you posted!

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