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Frequently Asked Questions
What is your Better Business Bureau Rating?
CCDCS is a Better Business Bureau Accredited Business. We are proud of the fact that we have had an
A+ rating since 2000.
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What are your fees?
Our low start-up fee is calculated taking into account the amount of a client's
debt, the number of credit accounts included in the program, and a client’s
ability to pay. With that, your file is opened and set up in our processing
system. Proposals are sent out to each of the creditors letting them know of
your intention to enter in a debt management program. Our monthly processing
fee is a minimum of $50, depending on a client's ability to pay. This includes
the use of up to two (2) ACH transactions, as well as all account management,
creditor calls and interaction, payment and updated proposal processing, and
file maintenance. For clients with one account only, or who are showing a severe
hardship, exceptions can be made at a counselor's discretion as to what the
monthly fee will be.
It is
important to note that we certainly don't "hold" the first month's payment that
we receive from our clients the way other deceptive agencies do. This delays
payments to creditors and inevitably the clients never receive the money back,
for one reason or another, although they are promised this money if they
complete the program.
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How does Debt Consolidation work without a loan?
You don't borrow money, you make monthly payments. We work on your behalf to arrange an acceptable repayment schedule with your creditors. You send one monthly payment to us, and we disperse it among your creditors. Debt consolidation is a way out of debt and a step towards regaining financial control. This satisfies the creditors as they know they will be receiving a consistent payment from you each month.
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How long will it take to pay off my debts?
Debt repayment varies from client to client. However, because we are often able to reduce high interest rates, clients are often able to pay back their debt in three to five years. Clients are, of course, welcome to and in fact encouraged to make higher than their regular monthly payment if at all possible. This makes the debt repayment even quicker!
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What about the late fees I'm being charged by my creditors?
Most creditors will stop charging late and/or over-limit fees once you enroll in our program. Some creditors require three consecutive payments before they will stop these fees.
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What about the high interest on my cards?
This is one of the biggest benefits to a debt management program. Many of your creditors will reduce or occasionally even eliminate their interest rate. These creditors know that you are sincerely trying to repay your debt without going bankrupt, and they give concessions when they can see you are having financial stress.
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Why will my creditors lower my interest rates for you, but not for me?
It is possible to contact your creditors yourself to request a reduction in interest rates. By the time most people contact us, they realize they need outside assistance to help them fulfill their credit obligations and are committed to doing so. Creditors know this and would much rather work with us than turn the account over to the Collections Department. Some people call us after they have "tried" to work directly with the creditor, but have not gotten anywhere.
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How does your program differ from filing bankruptcy?
For most people, filing bankruptcy is their last option to escape the collection services that are harassing them. CCDCS provides an alternative to filing bankruptcy that will enable you to re-age your accounts to bring them current, stop the harassing telephone calls and still pay off your debt.
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Should I get a loan instead?
By the time most people come to us, they have exhausted the loan option. Usually loans (or some form or credit) are what got you into trouble in the first place. Most unsecured loans have high interest rates, and if you get a home equity loan, you are now securing your credit cards with your home. However, some people with only a small amount of debt can get a small loan from a local bank, and this may be to their advantage.
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How do I make payments to CCDCS?
The preferred payment method is for CCDCS to draft your checking account (ACH) once a month. That way, your creditors will receive a payment from you once a month, at the same time each month. We also accept money orders. You can even split your payment in half and pay twice monthly.
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What if I am past due on my accounts?
That is no problem at all. Creditors just want to be paid. Most creditors will bring your accounts current (re-age), stop late and over limit fees, stop collection calls and reduce or occasionally eliminate interest.
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What if I am current with my bills, but because of a high interest rate, I'm not seeing a reduction in my debt each month, and I'm really having trouble making my payments?
If you are current with bills but not seeing a reduction in your debt and having trouble making payments, this could be a sign that you could benefit from a debt management program--especially if you are beginning to take out cash advances on your credit cards to make credit card payments and pay other monthly expenses. In a lot of cases, high interest rates are the real killer. By getting your creditors to reduce their high interest rates and fees, more of your monthly payment goes to reducing your debt, and you can become debt free years quicker than you would on your own.
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Can I still use my credit cards?
NO. All accounts on the program will be closed. To still be able to use your credit cards would defeat the purpose of enrolling in a debt management program! Most people keep out "one" credit card from the program to use in case of an emergency.
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How soon do you contact my creditors?
We send a proposal to your creditors on your behalf after we receive your complete enrollment information and start-up fee.
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Should I tell creditors about my plans to enroll in your program?
Yes, any creditor who contacts you should be advised of your plans. Major creditors are usually supportive. Feel free to give your creditors our contact information--then we can confirm that you are enrolled in a debt management program and verify when your payment has been sent.
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Will I continue to get calls and collection letters from my creditors?
Most creditors will stop collection activity once they receive the first payment from CCDCS. However, some may still call, and you shouldn't feel pressured to send them a payment directly. Contact us, and we will take care of the situation on your behalf. Remember, ALL your creditors would like you to make a "check by phone" right now, but you can't--that is why you enrolled in a debt repayment program.
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Will the Debt Management Plan affect my credit report?
Participation in a debt management plan may affect your credit rating either favorably or unfavorably, depending upon your credit history. It is your creditors, not CCDCS, that report your credit history according to their policies with respect to the plan and your payment history prior to and during your participation in the plan. However, paying your debt via a debt management program looks better than defaulting on your debts.
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Will you send me a detailed monthly statement?
No. We send a detailed statement the first time you send a payment and then once a year. We have found that sending a monthly statement discourages you from looking at each of your creditor statements. If any of these are not correct, please contact CCDCS so that we may investigate the error.
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Is this confidential?
Absolutely. We never have and never will sell your name or address to any party for any reason. We don't notify your employer or friends of your enrollment in CCDCS's program. We don't give out any information (other than identifying information) to your creditors.
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What if I want to quit the program?
That is no problem. You are only enrolled in our program for as long as you want. You may terminate the plan at any time for any reason. There are no cancellation fees or any other hassles. Simply notify us of your intent, and we will discontinue your program.
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How do you determine the payment that will be sent to my creditors?
Your minimum payment is calculated based on your account balances. We follow the guidelines set by the creditor to determine your payment. This is generally 2-3% of your total debt.
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Are the creditors really willing to work with consumer credit counseling agencies?
Absolutely. Most creditors are very supportive of consumer credit counseling agencies, as we are able to talk with the consumer to set up their payment arrangements. The creditors realize that to most people, consumer credit counseling is the last alternative before bankruptcy, so they are happy to be receiving payments. Creditors also realize that people can get stressed and disorganized having to pay 10 different creditors different amounts at different times of the month. Paying a third party just "one" monthly payment facilitates your repayments to all of your creditors.
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How does your consumer credit counseling agency receive its funding?
We receive some "fair share" funds from creditors and fees from clients.
"Fairshare" is a percentage of recovered payments to creditors. We also receive
grants from creditors in support of our community educational outreach efforts.
