creditinfocenter.comQ. 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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