Finance Question- Helping Relatives

Budget101 Discussion List Archives General Budget & Finance Finance Question- Helping Relatives

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    • #235128
      Liss

      Michelle,

      Consumer Credit Counseling Service (cccs) is a great organization. non
      profit. they work with the credit companies to lower and sometimes
      completely suspend interest rates.

      late fees stop….over the limit fees
      stop. monthly payments are lowered, which isn’t a big deal since all the
      fees and rates are lowered (or suspended) and your balance isn’t growing by
      leaps and bounds. cccs do not make any money directly off you…they do not
      charge you one penny.

      they are privately funded plus the credit card
      companies help subsidize them because cccs helps them gather money that
      might not have been paid back by overwhelmed consumers. it’s good business
      for the credit card companies to have cccs around.

      the way it works is simple. you will gather all your credit information and
      take it to cccs at your initial meeting. they’ll give you an estimate of
      your monthly payment (based on what various creditors usually agree to) and
      then verify it with all the creditors.

      then each month, you pay cccs one
      large payment (the combined amount that the credit card companies agree to)
      and cccs decides who gets how much money and then sends it to them. it’s
      that easy. if you’re paying 13 different bills each month (kinda
      confusing!), you’ll now have one large payment to make and that’s it!
      They’ll also go over your budget with your and help identify ways to cut
      back and/or save money.

      All you have to do in return as the consumer is hand over all your credit
      cards (they snip them up right in front of you) and agree not to acquire or
      use any further credit or debt. if you need something like a car loan
      while you’re on the cccs program, then you have to get a letter from cccs to
      your creditor saying they are aware of the loan and approve of it.

      as far as the “red flags” go, i’d say any companies who charge a fee,
      whether a monthly fee, flat rate, percentage on balances etc. would be a
      company to avoid. when you have a ton of debt, the last thing you need is
      another bill to pay.

      cccs provides budgeting advice and financial
      counseling. i just can’t say enough good things about them. it is a very
      professional organization.

      no, i don’t work for them. 🙂

      and as for co-signing for your sister, i’d definitely steer clear of that if
      possible. what she really needs is help finding the most logical solution
      to her immediate problem (mounting debt) and whatever situation got her into
      debt (layoff or lifestyle or whatever). i agree with the person who said
      if you co-sign, you should just assume you’ll be paying the debt off for
      her.

      if she is in debt, that means she didn’t have the money to pay it off
      herself, so why would she be able to now? i don’t mean to be rude, it’s
      just logic. that being said, i don’t think assuming her debt will be
      helpful to her at all in the long run.

      we all have to learn our lessons the
      hard way sometimes. and when you totally pay off your debt, cccs will help
      you get a good credit card and teach you how to use it responsibly to
      re-establish your credit.

      if you have any more questions about cccs, you can email me privately. good
      luck to you and your sister!

      karla

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Budget101 Discussion List Archives General Budget & Finance Finance Question- Helping Relatives