Consumer Credit Counseling Service (CCCS) and most other credit counseling agencies are accredited by the National Foundation for Credit Counseling. Each is a non-profit organization funded by the clients they serve, and by fair-share arrangements made with creditors for their help in the collection efforts.
CCCS and other agencies work with the client (debtor) in the following areas:
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Counseling – Plans for becoming debt free, by doing more with what you have.
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Debt Management Plans – Helping those severely in debt to work with creditors to reduce the monthly payments of debt service and stop collection efforts.
- Money Management Education – Teaching the wise use of credit, budgeting and setting financial goals.
CCCS will not do credit repair, or anything that might give the credit bureaus headaches.
By turning to a debt counseling program you will be raising a red flag to prospective credit grantors. If you leave CCCS before you have completed their program, they may list your failure to complete the program as a negative listing on your credit report.
Paying your debts, through whatever method, is a step in the right direction, but it will not restore your credit.
You may also find these pages of interest:
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Is Credit Repair Moral? – Is it morally ok to try to repair your credit?
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Legal Credit Repair – Is it legal to try to get your credit repaired?
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Dealing with a Credit Bureau – What you need to know if you are going to contact a credit bureau about your low credit score.
