Consumer Credit Counseling sounds like such a logical and sensible idea. You go to a "non-profit" organization with an impartial counselor who helps you "reorganize" your debt. CCCS may be helpful, but there are some things you should know and keep in mind:

Generally, your counselor is not impartial because CCCS organizations represent creditors and are paid by the creditors a percentage of everything they collect from you. The creditors are willing to pay so that they can avoid the expense of turning your account over to collection or possibly having to write off the amount you owe.

CCCS can get some interest rates reduced and late charges removed, but you still pay 100% of the amount you owe.

The CCCS will collect one check from you and distribute funds to your individual creditors. But be careful, because many times the monthly payment will be more than what you are paying in minimum payments each month.

You will need to be sure that you can afford a higher monthly payout. Also, some creditors may not accept the CCCS plan, and will still have to pay those bills separately.

Even though CCCS are paid a commission by your creditors (just like a collection agency), many also collect a monthly fee from you as a charitable donation, and are often listed as nonprofit  organizations. Being nonprofit does not mean that their staff is working on a volunteer basis. It simply means that the company shows no profit at the end of the year. There is no limitation, however, on what they pay for expenses or salaries.

Again, with CCCS your balance owed will not be reduced. At Melucci, Thomas & Brown, we negotiate a REDUCTION of your debt, which is usually between 50% to 90% of what you owe. Call us now for more information.