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Link to a forum : "Consumer Credit Counseling Service??"

2010-05-23T05:59:00.000-07:00

Opening date of this forum : 05-19-2010

2 replies so far

Opening post of this forum : "After my BK discharged, I got behind in my mortgage payments.

I just caught it up this month and pulled the house out of foreclosure, payments are now current.

Today I get a call from Consumer Credit Counseling Service, asking to do a interview. They say they work for Freddie Mac and work as a mediation between homeowner and bank to modify mortgages, and such.

Has anyone heard of them, or had success with them?

I can't do the HAMP because my housing expenses are just under the 31% guidelines, so I am hoping these people can help with a modification. They say that they make recommendations to the bank on ways to keep the homeowner in the house, and paying.

Thoughts?"

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Article : Why credit counseling often fails?

2010-05-16T13:18:00.000-07:00

source : articles.moneycentral.msn.com
By Liz Pulliam Weston

MSN Money

When people are overwhelmed by debt but don't want to file for bankruptcy, I typically recommend they make two appointments:

One with a legitimate credit counselor, preferably affiliated with the National Foundation for Credit Counseling.

Another with a bankruptcy attorney.

I make the second suggestion for a number of reasons.

One is that credit counselors and their debt-management plans, which are designed to pay off credit card debt over five years or so, are geared to steer people away from bankruptcy. Consulting with a bankruptcy attorney can help ensure that those struggling with debt know all their options.

The other, even more important reason: I know that even if you desperately want credit counseling to work, it often won't.

Here are the statistics, straight from the NFCC. Of the 3.2 million people who contacted NFCC agencies for help last year:

About one-third were able to handle their finances on their own after a counseling session.
Another third were either too far gone for debt management plans to help, with too little income or too much debt, or had problems credit counseling couldn't help and were referred to social services agencies because of issues such as a gambling problem, alcoholism or other addiction.
The final third enrolled in debt-management programs (DMPs), but the dropout rate averages at least 45%. ...

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News : Consumer credit counseling may help uneducated parents regarding credit scores

2010-05-09T11:38:00.000-07:00

source : debtconsolidationconnection.com
By Peggy Stillwell on May 7th, 2010

Many consumers may not know what affects their credit score, which may make it difficult for them to teach their children about proper financial management tactics.

According to a survey from ING Direct USA, 46 percent of respondents could identify no more than five of the 10 things that can lower a person's credit score. In fact, only five people of the more than 1,000 surveyed knew all 10 of the negative financial practices.

ING Direct USA chief executive officer Arkadi Kuhlmann said that parents who cannot identify the actions that can reduce a credit score may not be presenting a proper example to their kids.

"Also, parents could be overlooking some significant cost savings like lower interest rates that result by keeping their credit scores in check," Kuhlmann said. ...

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more debt consolidation news :
-Consumer credit counseling may help moms organize finances
-As students score low in financial literacy, consumer credit counseling may be option for education

Article : Consumer credit counselors – How do they help you?

2010-05-05T01:38:00.000-07:00

By Sandy Thomson, your credit counseling news source

Many people don’t know that consumer credit counseling can work as a substitute to filing bankruptcy. Expert credit counselors can educate you on various financial topics and offer debt counseling services after thoroughly assessing your financial condition.

Once you sign up for the services of a consumer credit counseling agency, your debt level would be evaluated by a professional credit counselor. Subsequently, a repayment plan is worked out on the basis of your income and debt level. They would negotiate with your creditors to reduce your interest rates and establish a debt management plan that would help you get out of debt.

How does consumer credit counseling work?

While setting up a debt management plan, your financial situation is comprehensively assessed by the credit counselors. Given below are the factors that are primarily taken into consideration:

Number of credit accounts you have
The outstanding balances of those accounts
The interest rates
Minimum monthly payments
Delinquent accounts (if any)

The credit counselor also takes into account how much you earn each month and how much you spend. Taking all these factors into consideration, a debt management plan (DMP) is created to pay off your bills. Every one of your creditors receives this suggested plan for acceptance purposes.

As soon as they agree to the suggested debt management plan, you need to start making payments to the consumer credit counseling agency. As per the DMP, this payment is allocated to your creditors. When you enter a DMP, your credit accounts are usually frozen so that you don’t run up new balances.

Fees of consumer credit counseling services

A host of credit counseling agencies maintain that they’re nonprofit in nature. Even though an agency declares themselves to be nonprofit, you shouldn’t by any means assume that their services are free of cost. More often than not, their services are available to you against a fee. The initial payment made by you might be used to compensate for the fees. On the other hand, some debt management companies might ask for a flat fee which is deducted from your monthly payment. ...

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Article : An Overview Of Consumer Credit Counseling

2010-04-28T06:29:00.000-07:00

By LaToya Irby, About.com Guide

Consumer credit counseling is an alternative to filing bankruptcy. It is professional counseling that provides you with financial education and debt counseling according to your situation.

Once you consult with a credit counselor, the counselor will assess your debt level and work out a payment plan based on your income. Some credit counselors can negotiate lower interest rates and set up a debt management plan with your creditors.

How Credit Counseling Works

The credit counselor analyzes your credit situation including number of accounts, balance, minimum payment, balance due, and any past due account. The counselor then considers your monthly income and bills. Using this information, the counselor puts together a debt management plan (DMP) for paying off your debts. The proposed plan is sent to each of your creditors for approval.

Once your creditors agree to the DMP proposed by your counselor, you begin making payments to the credit counseling agency. The credit counselor disburses payment to each of your creditors in accordance with the DMP. In most cases, your credit accounts are closed to future charges as long as you are on the DMP.

Costs

A lot of credit counseling agencies claim to be non-profit. Even if the credit counseling agency says it’s non-profit, that doesn’t mean the services provided to you are free. In many cases there’s some kind of fee involved. Some agencies use your first payment to cover their fees, while others deduct a flat amount from your monthly payment. ...

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News : Congressman looks to change student loan bankruptcy, although debt consolidation may help as well

2010-04-28T06:03:00.000-07:00

source : debtconsolidationconnection.com
By Angela Hawke on Apr 27th, 2010

Trying to fund higher education is a challenge many people face, as are the effects of not being able to pay off student loans in the long run.
One aspect of student loans that make them even more difficult is the fact that they are difficult to get rid of through bankruptcy. New laws passed in 2005 made all types of student loans harder to erase through filing, although a congressman is looking to change that.
Tennessee Democrat Steve Cohen, along with fellow party member and Illinois Representative Danny Davis, have authored a bill that would bring bankruptcy rules for student loans back to the way they were. In doing so, privately originated student loans would be treated the same as other forms of debt.
Cohen said that people should not be discouraged from getting further education because of the fact that it could lead to financial difficulties, and that his bill helps with that. ...

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more debt consolidation news :
-Free credit score law could help consumers, while debt consolidation can lower credit card bill
-Debt consolidation may be an alternative to questionable interest-rate reduction companies

News : Consumer credit counseling may recommend extra job, and summer proves to hold some hope

2010-04-28T05:43:00.000-07:00

source : debtconsolidationconnection.com
By Angela Hawke on Apr 24th, 2010

One piece of advice a consumer credit counseling agency may give consumers is to find additional work to make ends meet.
A way many people may be able to find an additional job is through seasonal opportunities made during the summer. A recent survey from www.SnagAJob.com shows that the prospects of people getting hired for summer work is about the same this year as last.
About 29 percent of hiring managers interviewed in the survey conducted by Ipsos Public Affairs said they would hire the same number of people for the summer of 2010 as they did in 2009. Furthermore, the number of hiring managers who said they would hire fewer workers dropped to 18 percent, compared to the 23 percent who said so last year.
"Competition will still be fierce, especially because unemployment remains high," Shawn Boyer, CEO for SnagAJob, said. ...

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Article : Eliminate Your Debt and Effectively Manage Your Credit Score

2010-04-22T12:58:00.000-07:00

source : ezinearticles.com
By Divya Mishra

The toughest aspect about any and every debt reduction plan is not the negotiations or the regular repayment of the debts. Instead, it is the negative impact on the credit score that is most difficult to manage.

Just as you cannot live without unsecured debt, you cannot live without your credit score. In such a scenario, it is obvious that you will have to manage both these aspects simultaneously. Managing debt relief as well as your credit report is like trying to juggle three balls at once when you have just one hand.

Holding on to a single ball is only going to hurt you more. In such a scenario, you should know how to juggle the balls effectively.

Elimination of debt by requesting your creditor for a 90% discount is, at least in theory, possible. However, what about the practical aspect? Do you think any credit card issuer will be interested in helping you out after you seek a 90% discount? Obviously not.

If you can not repay anything more than 1/10 of your debt, it is obvious that you are terrible at financial management. This information will be clearly stated in your credit report and you will find your credit score coming down drastically.

That is the reason why you should manage your debt relief program in such a manner that your debts come down even as your credit score is protected. You should go in for a reduction program that leaves you with sufficient debt that can be repaid in full.

That is to say, if you go in for 50% discount, you will have to repay the balance 50%. This means that you will have to strict towards disciplined repayment plan and fulfill your obligations very quickly.

Needless to say, this will have a huge impact on your credit score. The fact that you sought a waiver of 50% of your debt will work against you. However, the fact that you repaid 50% will definitely work in your favor.

In such a scenario, choosing the right remedy which will help you balance both these aspects is a very important task. Rather than trying to do everything on your own, it makes sense to get in touch with professionals who will advise you on the right way to negotiate and proceed.

There may be instances where card issuers may be prepared to offer a 70% discount. Going in for a 50% discount will definitely impress them that you are trying to do your best. They may even not specify that you have discharged your loan. This might even help you overcome your negative hit on the credit score.

If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals.

Consumer Credit Protection Act

2010-04-22T12:54:00.000-07:00

The United States federal wage garnishment law, widely known as the Consumer Credit Protection Act guards employees from discharge by their employers because their wages have been garnished in any one week. It was approved by the government in 1968. The Wage and Hour Division of the United States Department of Labor includes the Employment Standards Administration, who administers the act. The informed use of credit is administered by the United States Congress and stabilizes economic acts to be enhanced with competition informed unto various financial institutions that are engaged in extension of consumer credit that would be strengthened otherwise by informed credit use.

source : http://en.wikipedia.org/wiki/Consumer_Credit_Protection_Act

Consumer Credit Act 2006

2010-04-22T12:46:00.000-07:00

The Consumer Credit Act 2006 (c.14) is an Act of the Parliament of the United Kingdom intended to increase consumer protection when borrowing money.

Provisions

The main provisions of the Act are to extend the scope of the Consumer Credit Act 1974, to create an Ombudsman scheme, and to increase the powers of the Office of Fair Trading in relation to consumer credit. In addition, it permits borrowers to challenge in court "unfair relationships between creditors and debtors".

Consumer Credit Act 1974

The 2006 Act brings two further types of agreement under the scope of the 1974 Act:

* Consumer agreements above £25,000, to reflect growing levels of consumer borrowing and debt;
* In section 1, to include small, one-man businesses and partnerships of up to three people.

Ombudsman scheme

The 2006 Act gives consumers the option of using the Financial Ombudsman Service if they are unhappy with their lender's dispute resolution service, whether the lender consents or not. Complaints may also be raised against other types of credit related companies, such as debt-collection agencies.

Office of Fair Trading

The 2006 Act empowers the Office of Fair Trading (OFT) to investigate applicants for consumer credit licences, to impose conditions on licences, and to impose civil penalties of up to £50,000 on companies which fail to comply with its conditions, appeals from which lie to the Consumer Credit Appeals Tribunal and thence, with leave, to the Court of Appeal.
source : http://en.wikipedia.org/wiki/Consumer_Credit_Act_2006

Consumer Credit Act 1974

2010-04-22T12:44:00.000-07:00

The Consumer Credit Act 1974 (1974 c. 39) was an Act of the Parliament of the United Kingdom that significantly reformed the law relating to consumer credit within the United Kingdom.

Prior to the Consumer Credit Act, legislation covering consumer credit was slapdash and focused on particular areas rather than consumer credit as a whole, such as moneylenders and hire-purchase agreements. Following the report of the Crowther Committee in 1971 it was decided that wide-ranging reform of consumer credit law was needed, and a bill to do this was introduced to Parliament. Despite its progress through Parliament being disrupted by a general election, the bill passed quickly through the legislative process thanks to support from both the government and the opposition, coming into law on 31 July 1974.

The Act introduces new protection for consumers and new regulation for bodies trading in consumer credit and related industries. Such traders must have full licenses from the Office of Fair Trading, which may be suspended or revoked in the event of irregularities. The Act also regulates what may be taken as security, limits the ways in which credit organisations can advertise and gives the county courts the ability to intercede in the case of unfair or unjust credit agreements. It also gives additional rights to the debtor, including certain limited rights to cancel concluded agreements. The Act was superseded by the Consumer Credit Act 2006, which significantly reformed the 1974 Act and made it largely irrelevant.

source : http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974

News : Some willing to seek advice, such as services offered by consumer credit counseling

2010-04-22T12:33:00.000-07:00

source : debtconsolidationconnection.com
By Peggy Stillwell on Apr 20th, 2010

A recent survey shows that some consumers may not feel too educated when it comes to dealing with their finances, although they are willing to look for help.

According to the poll from the National Foundation for Credit Counseling, 34 percent of respondents would give themselves a grade of C, D or F regarding their understanding of personal finances. The percentage represents more than 77 million people who may be in line for some additional assistance.

"Although the survey did show some improvements in consumer behavior as it relates to personal finance, there are still serious deficiencies which impact consumers' ability to properly manage their money, particularly during an economic crisis," said NFCC spokeswoman Gail Cunningham. ...

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News : Military personnel may consider consumer credit counseling for debt help

2010-04-22T12:28:00.000-07:00

source : debtconsolidationconnection.com
By Oscar Monfort on Apr 11th, 2010

The fear of growing debt may cause some consumers to shy away from dealing with the problem, an ill-advised strategy that will only make matters worse.

In a recent story from the American Forces Press Service published on the Department of Defense's website, the Pentagon's personal finance director noted that members of the military need to act as soon as possible in order to deal with bill problems.

"Financial problems aren't like a fine wine; they don't get better with age," Julian said. ...

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News : Debt consolidation, consumer credit counseling options for improving finances

2010-04-22T12:24:00.000-07:00

source:debtconsolidationconnection.com
By Marvin Milner on Apr 21st, 2010

When facing a troubling debt situation and dwindling finances, people may consider options like debt consolidation or consumer credit counseling.

In a recent piece for her website, personal finance expert Liz Pulliam Weston showcased a letter from a reader whose credit dropped after a foreclosure. Furthermore, the reader faced a reduction in salary after finding a new job and was curious as to how consumers in such a situation can start rebuilding their credit.

Pulliam Weston noted one option for consumers is debt consolidation. Through debt consolidation, people may be able to lower the amount of interest they pay on credit cards, which can help them get out of debt faster. ...

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News : Government programs, debt consolidation may help pay down student loans

2010-04-22T12:18:00.001-07:00

source : debtconsolidationconnection.com
By Peggy Stillwell on Apr 11th, 2010

Government programs do exist to help those in financial trouble put food on the table or pay for medical expenses.

However, as the effects of the last recession are still felt, more people may find they have to rely on the assistance provided by Medicaid and Supplemental Nutrition Assistance Program, the latter more commonly known as food stamps.

According to a report from the Atlanta Journal-Constitution, SNAP saw a 32 percent increase in Georgia from December 2008 to the same month in 2009. During that time, Medicaid recipients also went up by 9 percent. But the paper noted the state is planning on reducing the number of workers who administer the program by 137 people.

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News : Consult with consumer credit counseling service before seeking debt settlement

2010-04-22T11:52:00.000-07:00

source : debtconsolidationconnection.com
By Oscar Monfort on Mar 26th, 2010

A recent column suggested that people consult with a consumer credit counseling agency before they consider debt settlement.

In writing for the Detroit Free Press, Susan Tompor noted that a debt settlement could end up costing them while also hurting their credit score. Through debt settlement, lenders agree to take less money than is owed in order to square up an account.

"Regulators and others warn that if borrowers get involved with the wrong outfit, they could end up losing thousands of dollars, ruin their credit, and find themselves hounded and even sued by creditors and possibly forced into bankruptcy," Tompor said. ...

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Link to a forum : "Consumer Credit Counseling Service and DMP"

2010-04-19T06:50:00.000-07:00

Opening date of this forum : Nov 13 2008
( 4 posts )

Opening post of this forum :

"How is somebody with debt and expenses over their monthly income suppose to save any money. Or even budgeting for that matter. If you only paying your necessary expenses and your Credit Cards and Car loans, and have nothing or less then nothing left over, what do you do? We have 2 cars because there is no reliable or safe public transportation that can take us to work and to and from the babysitter everyday. We have internet because of work ans school. Not for entertainment.
"Karla with a K" has written some really good things on this thread. And would love her advice.
I am paying ruffly 700 dollars a month to my unsecured debt. And 500 dollars a month to secured debt. I have an appointment with CCCS on Tuesday to hopefully enter their DMP program. DO you Karla or any other person familiar with CCCS, know if they recomend me to bring all my "debt" or just the unsecured one? I am not late on my secured debt ( carloans )and the interest is low ( around 5 % ) but the payments are very steep. I could really benefit from a reduction of 300 - 400 dollars a month in debt payments. Is that even possible with CCCS?
Thanks in advance.

And to all of you who is struggling everyday to get by to suport yourself and your family. There are many of us out there and you can always come here for support. I even would suggest citydata to give financial hardship its own forum."

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Link to a forum : "Consumer Credit Counseling etc."

2010-04-15T12:32:00.000-07:00

Last post: Feb 23 2010
(more than 26 replies)

Opening post of this forum :
"Hi ,

I'm not saying I'm going to do this, but it never hurts to consider options. Does anyone know anything about debt consolidation, consumer credit counseling, bankruptcy, and similar such programs?

DR says they are a bad idea b/c they will destroy your credit. But, I'm starting to wonder if it might be the only realistic option for us. Ironically, one reason we were able to take on so much debt is because of our good credit. Somehow we always manage to make the minimum payments and make them on time. However, if we were to move I doubt if we could get another mortgage or even qualify for a rental property because our debt to income ratio is terrible with a capital T. And I know of others who have declared bankruptcy or done some type of debt consolidation and they survived and were better off in the long run.

If the farm sells the situation will change considerably but who knows when that will happen.

Given the poor economy I don't see our income going up significantly any time in the near future. At the rate we're going we will literally have this consumer debt for the rest of our lives.

Does anyone have any ideas? "

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Article : Missed rate increase opt-out? You have 3 choices

2010-04-11T08:53:00.000-07:00

Todd Ossenfort | Posted: Friday, April 2, 2010

Q: I missed the opt-out letter from my bank credit card. I have a $10,000 balance, and my former APR was 9.24 percent, but it was increased to 29.99 percent. I’ve been a customer since 2000. I’ve called several times to ask that my APR be reduced and/or a payment plan, and they said no because my account is current. I pay online and simply missed the opt-out offer.

This is my next to last debt to pay off so, of course, that’s good. I have been using the debt snowball method, which has really accelerated my payoffs. Any suggestions on what to do from here?

The interest per month is around $240, and it’s killing me. Because of the debt snowball method, I can make the minimum payment but just hate to lose so much money each month. I have $2,000 from my tax refund to apply to the card, but just hate losing so much money in the interim.

I have a part-time business that also is helping me pay more than the minimum each month. They told me that, because my account is in excellent standing that they have no programs to offer me, but if I miss a payment or pay less than the minimum, then call back because they will be able to assist me. Of course this is ludicrous to me since all I need is for them to lower my APR back to 9.24 percent.

A: Great job on paying down your debt and reaching the point that you have only one account left to pay off. I understand your frustration and looking at it from just your side, it seems unfair. However, if you were the creditors, you would understand their point of view as well. They decided, for whatever reason, that you were an increased credit risk and needed to change your annual percentage rate (APR) to reflect that.

Your creditors wrote you a letter explaining this decision and gave you the option to close your account and opt out of the increase in your APR. When they did not receive word from you that you wished to opt out, they increased your APR and left your account open.

On the surface, it may seem odd that your credit card issuer will not lower your APR and allow you to pay out your balance at the old rate. The sticking point for your creditors is that they appear to perceive you to be an increased risk and your account remains open — meaning you can increase your balance with additional charges. Because of these things, the issuer believes it must charge you an increased APR to minimize risk.

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Link to a forum : "Advice on Debt Negotiation Service"

2010-04-06T00:30:00.000-07:00

Last post: 10-30-2008

Opening post from this forum :
"I have recently signed up with a company called Debt Negotiation Services. I am set to make monthly payments for 48 months. Recently I've had a creditor call me and say that one of the accounts have "charged-off". I'm starting to have second thoughts about the service . I have read on CreditInfocenter.com that (most) of these companies are not worth using/trusting. Has anyone used this company or a similar one with any success?

Thanks for any help. "

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Article : Can you really get a free credit report?

2010-04-06T00:20:00.000-07:00

Consumer Credit Counseling Service
Apr,02. 2010

KNOXVILLE — A credit score is a vital component of overall credit health, and consumers should be proactive in learning what is in their credit report and how it may affect their score and their ability to secure credit. Consumers should beware, however, of misleading advertisements claiming offers of free credit reports that are a really a sales tactic to get consumers to purchase credit monitoring or repair services, sometimes for a hefty fee.

“Free credit reports, without strings attached, are available,” said Daru Burdge, president of Consumer Credit Counseling Service (CCCS) of East Tennessee. “Consumers need to know where to turn and not be enticed by online offers that promise free reports and then require them to sign up for programs and services that have a fee.”

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Article : 3 On Your Side: Financial Bootcamp

2010-04-06T00:15:00.000-07:00

Apr 5, 2010 7:09 pm
PHILADELPHIA (CBS 3)

How well do you manage your money? If you spend too much and save too little in this economy that could spell disaster. But there are people that can help you get on the right track and it won't cost you a cent.

This Saturday Consumer Credit Counseling Service of Delaware Valley is holding "Philadelphia Saves: A Financial Boot Camp for Life. Kim Cooper of CCCS says, "People need a boot camp because it allows them to get a lot of information at one time."

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Article : Consumer Credit Counseling Service,Is This A Good Idea?

2010-04-02T10:04:00.000-07:00

creditinfocenter.com

Q. Could you tell me about Consumer Credit Counseling Service, i.e., CCCS. How does it work? I am trying to manage my finances and restore credit. This service seems very workable. However, when the time comes (in the next year or so) that I want to borrow for a home, car, education or healthcare for my son, will my credit be worse from consolidating through such a company?

A. It would really depend on how bad your debt is. It may be the right thing for you but I don't usually recommend Consumer Credit Counseling Service unless someone is deeply in debt. It usually ruins your credit. Let me elaborate.

How CCCS works:

Consumer Credit Counseling Service talks to you to determine how much you can afford to pay each month. Then they negotiate with your creditors, getting them to accept lower monthly payments until all your debts are paid. CCCS will make you sign an agreement to not obtain any more debt until the current debt is paid off. You then make a single monthly payment. I believe the payment is made to CCCS and they pay your creditors.

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Article : Consumer Credit Counseling Services

2010-04-02T10:00:00.000-07:00

From Deborah Fowles, former About.com Guide

Should You Use Them?
More and more people are turning to credit counselors to help them get out from under a mountain of debt. Some consumers are finding out the hard way, however, that not all credit counselors are created equal.

One so called "non-profit" counseling agency pockets your first month's check, which you assume is being applied to your debts, and calls it a "charitable contribution." Agencies like these may make you wary of seeking help from a consumer credit counseling agency, but if you know how to choose a reputable agency and you exercise a bit of caution, you can benefit from their services.

What Can I Expect From a Credit Counseling Agency?

Just what can you expect from a credit counseling agency? Besides providing general budgeting and money management advice to help you prevent future debt problems, they can negotiate with your creditors to get them to eliminate late fees, extend the term of your loan, or lower your interest rate. If your debt is burdensome enough, the credit counselor will encourage you to enter into a debt repayment plan requiring you to pay a set amount to the agency each month, which they then pay to your creditors.

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Questions about Consumer Credit Counseling Services

2010-03-26T11:59:00.001-07:00

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