How CCCS Works With Your Creditors
Consumer Credit Counseling Service is a non-profit community organization established to help people avoid bankruptcy. Because creditors have an interest in collecting outstanding accounts, they have agreed to give special consideration to CCCS clients who enroll in the Debt Management Plan. In many cases, interest rates, late fees and over-limit charges are lowered or suspended. The creditor allows this because CCCS individually manages each account. Therefore, while thousands of clients make just one monthly payment to CCCS, CCCS in turn, combines all those payments into one lump sum for the creditor, saving them time and collection fees. A small portion of that lump sum stays with CCCS to cover the cost of paperwork and overhead.
Most importantly, this arrangement does not decrease the amount applied to your account. Every penny you pay beyond the monthly service fee (never more than $35) goes directly toward your outstanding balance. This cooperative relationship has worked for over thirty years helping hundreds of thousands of consumers avoid the unpleasant consequences of bankruptcy. Other funding sources, including grants and community donations allow CCCS to provide financial education and counseling support to help people learn to stay out of debt once they complete the DMP.