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Ok some people might disagree with me, but that’s why we all have freedom of speech. I have a lot of people call me and ask me, what I think about Consumer Credit counseling. First of all the Short name for Consumer Credit counseling is CCC, so that is how I will address it from now on.
CCC is way over hyped. I’m sure you have seen TV ads where people give their testimony about how CCC solved all of their credit problems and saved their lives. Guess what there actors LOL, no serious they are actors, there not real people who have really been helped.
If you thinking about going to CCC, investigate what they really do and operate. CCC services state that they are non-profit organizations. That is not a true statement; they use the status to shift assets to a profit corporation.
Did you know that most of the CCC services were stated from Banks? A lot of CCC offices were shut done by the FTC and IRS, go figure. Remember the Ameridebt commercial; well the FTC shut them down because they charged up front fees for the service when they said they don’t. If you don’t believe me look for yourself http://www.ftc.gov/opa/2005/03/ameridebt.shtm . Do you
really want them teaching you how to handle your finances? I don’t think so!! Check this out, CCC really does not help you, the counselor contacts all your creditors and they try to get the creditors to lower your interest rate and work out new payment plan with them. You’re thinking man this is the break I need, but understand CCC has up front monthly fees (or donation) that they charge.
Guess who is driving the car now, CCC because they pay all of your bills under a new payment agreement with the creditors. You now have to pay CCC your money and there fee monthly and they send your payments to your creditors under a new agreement. What a ride!!!
So when CCC shows up on your credit, lenders, banks and reporting agencies look at that just as they do a bankruptcy. Just to help you think of CCC as being worse then bankruptcy.
Kirt Eure
