I need some avises on Debt management
By kingparker
@kingparker (9673)
United States
January 31, 2010 8:18pm CST
Recently, I signed up with CCCS.org, and sign up with its Debt management plan (DMP); because I was sued by the collector for one bad debt I couldn't be able to pay. I was intend to make the payment, and I had called the collector to arrange the payment plan several times. It seems that the collector was not willing to accept my offer. So, after I go with the DMP, and I follow the court order procedure to Answer the complaint; finally, I received a consent judgment from the state court. It requires me to pay $200 monthly to the collector's law firm until the balance paid in full. There is also one dilemma, the CCCS (credit counseling agent) also push me to make the second payment, the same amount $200, but with 10% charge for the administrative fees, which added up to $220 per month. I understand that CCCS is a nonprofit organization, and it needs clients to help with their overhead costs. But with 10% extra on my shoulder, it will be too much for me. Should I just get rid of CCCS, or should I pay the collector's law firm directly without the help of CCCS, so I can avoid the 10% charge?
Please give me some advise on this one.
2 responses
@firemom31 (598)
• United States
1 Feb 10
I assume that this one debt is not the only one CCCS is handling for you? CCCS has a lot more to offer than just debt management, they can teach you how not to get in the same spot again. You should talk to them about your concerns and see what they can do to assist you. If the only debt they are taking care of is the one you were sued for, then there may truly not be a reason to stay with CCCS, but you should talk to them about it. They are a trustworthy organization and I don't think they will give you bad info.
@kingparker (9673)
• United States
2 Feb 10
I understand, but I just couldn't handle such 10% administrative fee from them. And in fact, that is the only one debt they are helping me right now. It will be a dilemma for me. I would rather get rid of CCCS, and pay directly to the law firm my own.
@thea09 (18305)
• Greece
3 Feb 10
Hi Clorissa, you should never pay a credit counseling service to handle debt problems for you. All you will do is increase your own debt. You are intelligent enough to find the information you need to deal with handling the problem on the internet. Their main concern will be dragging the debt out to get more in fees from you, rather than sorting this out in the speediest manner.
Ditch the cccs and start doing your own research online on the best way to sort your debts out. This is valid advice by the way, we can catch up on one of your other discussions.


