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Credit Counseling - Questions & Answers
Introduction
Many times, before filing bankruptcy,
a consumer will visit a credit counseling agency,
either locally or on the internet. Here's some
information that might help you as you negotiate
the credit counseling process.
What are credit counseling
services?
Credit counseling services are
designed to help individuals and families learn
more about getting and using credit, budgeting
and paying creditors. Credit counseling services
come in three varieties: for profit, non-profits
accredited by the National Foundation for Consumer
Credit, and other non-profits, many of whom can
be found on the internet.
We strongly suggest that you
stay away from for-profit counselors and from
non-profit internet counselors. For-profit counselors
are expensive and provide fewer services than
non-profits do. Often internet groups are set
up as non-profit, but some are being investigated
because of the amount of money they pay for services
“provided” by companies owned by their
officers. In addition, many are amassing complaints
for mishandling client funds.
The only reliable counseling
services are those accredited by the National
Foundation for Consumer Credit. These organizations
offer debt counseling in person, by mail, by phone
or through the internet. They also offer classes
and debt workout programs. Consumer fees for the
monthly payment workout plan are generally low,
but consumers should understand that CCCS is supported
primarily by the credit-granting industry and
creditor participation in workout plans is strictly
voluntary. In addition, CCCS cannot prevent foreclosure,
repossession and other legal actions.
Here are the addresses of the
three local CCCS affiliates. Each of these affiliates
has branch offices in surrounding communities:
CCCS of Greater Dallas, Inc.
8737 King George Drive, Suite 200
Dallas, Texas 75235
(214) 638-2227
(800) 783-5018
www.cccs.net
CCCS of Greater Fort Worth, Inc.
1320 S. University Drive, Suite 200
Fort Worth, Texas 76107
(817) 732-2227
(800) 374-2227
www.cccsfw.com
CCCS of North Central Texas,
Inc.
901 N. McDonald, Suite 600
McKinney, TX 75069
(800) 856-0257
www.cccsnct.org
How does a CCCS workout program operate?
CCCS will ask you for information
on all the unsecured debt you owe, including credit
cards, loans, and medical bills. They will contact
your creditors and attempt to workout a repayment
schedule for those debts. The workout may include
reducing or eliminating interest and penalties,
extending and/or lowering payments. You make a
monthly payment to CCCS (which will include a
fee of about $24 for the service), and CCCS distributes
your payment to your creditors. The workout plan
will often require you to make payments for 4
to 5 years. In any event, the program requires
sacrifice and discipline.
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