Archive for May, 2010
Is Consumer Credit Counseling Or CCC "Good" Or "Bad"?
Louie Frias asked:
Depends…
On, how much debt you have.
What your intentions with counseling are.
On whether you understand how CCC on your credit report appears to a lender or underwriter.
On what an attorney advises you of.
On why you are even considering them in the first place.
Let’s begin with what “exactly” CCC is.
CCC’s are treated as non-profit entities whose goal in life is to assist a prospective home mortgage borrower or overwhelmed consumer manage their “out of control” debt. All CCC’s are governedy the FTC and anyone can own one. They are NOT a Federal Agency.
Credit card, auto loans, personal loans, school debt. By themselves these debts can be managed. However, when combined with increasing interest rate adjustments and dwindling personal income, they can quickly and easily become an alligator from which there is little hope of escape.
Many consumers are conditioned to react with knee-jerk responses to bankruptcy due to being innundated with attorneys advertising how easy it is to file bankruptcy.What they fail to disclose to the consumer is the changes in bankruptcy laws.Those laws were changed to prevent consumers from simply abusing credit. Charging astronomical amounts of goods and services with the intention of never paying them back – via bankruptcy.
Uninformed consumers who arrive at an attorneys office expecting this loophole to still be available are surely in for a disappointing shock. At that point morality steps in. Pay it back or not? Bankruptcy or CCC? Legalman pursuades a high percentage to go the route of bankruptcy.
Since I’m NOT an attorney, I cannot provide legal advice, however, I can provide information on why you might consider CCC.
In 2005 Congress enacted a new bankruptcy law that require consumers to attend pre-filing briefings and financial management skills classes by an approved credit counseling agency. A cursory investigation of numerous CCC websites reveal that while their “intent” is admirable, they do not fully disclose the effects of having CCC appear on a consumers credit report.
They’ll gladly tell you what’s on it and how to “manage” it through a debt management plan, but they won’t tell you how a mortgage underwriter will view their appearance. At best, they might attempt to explain “how” a FICO score works. (Lack of) Full disclosure is partly the reason Congress has investigated many over the years.
First understand that CCCS agencies represent the Credit Card industry – not the consumer. Think about it. When a consumer calls the card issuer, (which is VERY rare) the treatment received is overall demeaning; hence the avoidance of the call. Therefore, the card companies place a “middle-man” between themselves and the consumer. The card companies dictate the acceptable scope of terms and those terms are issued to the consumer.
So, if the consumer does not pay a fee for counseling, how does CCCS make money?
Credit card company subsidies AND the consumer may be presented with a bill for CCC services as well.
The consumer take a HUGE leap of faith in using CCC’s and here’s why. Remember, these are someone’s “business”. Businesses go “out of business” all the time. CCC’s exist to structure a repayment plan between the consumer and the creditor.
The “plan” is this. Negotiated, reduced monthly payments to your creditors.You send in adequate funds each month to CCC to cover the new monthly total.CCC then forwards the designated payment to the creditor. HERE’S the danger:
What if CCC fails to forward the payment? On time? Or in full? Any glich between CCC and the creditor and YOU get the harassing phone calls! Not CCC!
Some abuses have been so rampant, congress has even stepped in. Read about those here:
http://www.cccsnct.org/index2.php?option=com_content&do_pdf=1&id=53″
http://www.ftc.gov/os/2003/11/031120testimony.shtm
If you do decide to use a CCCS, investigate them. Ask for references.Ask if they supply you with monthly statements you can compare to your credit card and other debt statements. You need to account for every penny you send them and you need to be aware if those pennies are being received as scheduled.
Once you have accurate information, only then can you make an informed decision.
Glenda
Depends…
On, how much debt you have.
What your intentions with counseling are.
On whether you understand how CCC on your credit report appears to a lender or underwriter.
On what an attorney advises you of.
On why you are even considering them in the first place.
Let’s begin with what “exactly” CCC is.
CCC’s are treated as non-profit entities whose goal in life is to assist a prospective home mortgage borrower or overwhelmed consumer manage their “out of control” debt. All CCC’s are governedy the FTC and anyone can own one. They are NOT a Federal Agency.
Credit card, auto loans, personal loans, school debt. By themselves these debts can be managed. However, when combined with increasing interest rate adjustments and dwindling personal income, they can quickly and easily become an alligator from which there is little hope of escape.
Many consumers are conditioned to react with knee-jerk responses to bankruptcy due to being innundated with attorneys advertising how easy it is to file bankruptcy.What they fail to disclose to the consumer is the changes in bankruptcy laws.Those laws were changed to prevent consumers from simply abusing credit. Charging astronomical amounts of goods and services with the intention of never paying them back – via bankruptcy.
Uninformed consumers who arrive at an attorneys office expecting this loophole to still be available are surely in for a disappointing shock. At that point morality steps in. Pay it back or not? Bankruptcy or CCC? Legalman pursuades a high percentage to go the route of bankruptcy.
Since I’m NOT an attorney, I cannot provide legal advice, however, I can provide information on why you might consider CCC.
In 2005 Congress enacted a new bankruptcy law that require consumers to attend pre-filing briefings and financial management skills classes by an approved credit counseling agency. A cursory investigation of numerous CCC websites reveal that while their “intent” is admirable, they do not fully disclose the effects of having CCC appear on a consumers credit report.
They’ll gladly tell you what’s on it and how to “manage” it through a debt management plan, but they won’t tell you how a mortgage underwriter will view their appearance. At best, they might attempt to explain “how” a FICO score works. (Lack of) Full disclosure is partly the reason Congress has investigated many over the years.
First understand that CCCS agencies represent the Credit Card industry – not the consumer. Think about it. When a consumer calls the card issuer, (which is VERY rare) the treatment received is overall demeaning; hence the avoidance of the call. Therefore, the card companies place a “middle-man” between themselves and the consumer. The card companies dictate the acceptable scope of terms and those terms are issued to the consumer.
So, if the consumer does not pay a fee for counseling, how does CCCS make money?
Credit card company subsidies AND the consumer may be presented with a bill for CCC services as well.
The consumer take a HUGE leap of faith in using CCC’s and here’s why. Remember, these are someone’s “business”. Businesses go “out of business” all the time. CCC’s exist to structure a repayment plan between the consumer and the creditor.
The “plan” is this. Negotiated, reduced monthly payments to your creditors.You send in adequate funds each month to CCC to cover the new monthly total.CCC then forwards the designated payment to the creditor. HERE’S the danger:
What if CCC fails to forward the payment? On time? Or in full? Any glich between CCC and the creditor and YOU get the harassing phone calls! Not CCC!
Some abuses have been so rampant, congress has even stepped in. Read about those here:
http://www.cccsnct.org/index2.php?option=com_content&do_pdf=1&id=53″
http://www.ftc.gov/os/2003/11/031120testimony.shtm
If you do decide to use a CCCS, investigate them. Ask for references.Ask if they supply you with monthly statements you can compare to your credit card and other debt statements. You need to account for every penny you send them and you need to be aware if those pennies are being received as scheduled.
Once you have accurate information, only then can you make an informed decision.
Glenda
Repairing Your Bad Credit
Brenda Brown asked:
There’s a concept out there, that if you have bad credit, you did something ‘bad’ to deserve it. And even if you did do something silly along the way (And who hasn’t?) the stigma dictates that you deserve the problems you have to go through to repair your credit score. But before you get too cocky about how high and safely you are situated, and start looking off the end of your nose at the misfortune of someone else, the reality is that bad credit can happen to many of us at any time.
Let’s say you’ve got a reasonably good savings account, have made all your payments on time, have made more than the minimum payment on most of your monthly bills, and have lots of collateral. Then, all of a sudden, your wife is informed she needs immediate surgery. Or, you are in an accident, the vehicle is totaled, there’s hospital bills, and months of therapy. Or, you lose your job, or, your wife loses hers. Or, the Stock Market takes a plunge and the company you are working for has to let some workers go, which includes you, and then you can’t find a job. We can do a lot to help ourselves find a relatively good place of safety, but life happens, and we just aren’t in control of everything! The next thing we know, we’ve go ‘negative’ points on our credit reports, and our credit score has dropped.
Today, millions are living from paycheck to paycheck, and bad credit ratings loom just around unexpected corners. And what do you do when bad credit happens?
– Work harder and pay off the debt? If that’s possible, that’s good, but did you know that paying off a debt or making a late payment, current, will not improve your credit rating much, if at all? By paying an outstanding, delinquent debt, you will change the account status, but it will read, “paid collection, “paid was late,” or “paid was charged off” – which will still stand out as a very negative listing.
– Hire a credit repair service, or a lawyer? Did you know that credit repair companies often employ attorneys to legitimize their efforts and justify their high fees? These services usually just send out a series of letters on your behalf to the credit bureaus, and charge monthly fees (since the law forbids them to charge upfront fees), and thus, the more time they take, the more they make. Therefore, it’s not unusual for it to take several years before you see results from these companies.
– Speak to credit grantors, collection agencies, or credit bureaus? Typically, they tell you all credit items must appear on your report for seven years; when the truth is that negative listings cannot appear on your credit report for longer than seven years (10 for bankruptcies), but the credit grantor or the credit bureau, can choose to delete the negative credit listing whenever they see fit.
– Talk to Consumer Credit Counseling Services (CCCS), nonprofit debt counseling services that help consumers who are over their heads in debt? Did you know that CCCS, and companies like them, are funded and controlled by the credit grantors and bureaus? To whose side do you think their ears will be glued, yours or the credit grantors and bureaus?
Wouldn’t it be good….no let me change that! Wouldn’t it be GREAT if there was someone who created a system that….
– Had been voted the WORLDS’S BEST CREDIT REPAIR PROGRAM by two independent credit repair review sites?
– If this system was updated monthly for accuracy, and not every four or five years, like most programs?
– If this system was the easiest and fastest method for dramatically improving your credit score?
– If this trademarked method could increase your credit score in a matter of days, not months or years?
– If this system gave you $321 worth in bonus materials related to credit and finance?
– And if this system said you could take a full 30 days to review it and make sure that it was everything they said it would be…and more, or they guaranteed you your money back?
Well, someone has made such a system and is offering you his expertise. So if you are like so many others, looking to get their credit score back, there is a place to go to get real help. Or, if you would like to just improve on your credit score, but aren’t sure how to go about it, you too, can benefit from this.
Rose
There’s a concept out there, that if you have bad credit, you did something ‘bad’ to deserve it. And even if you did do something silly along the way (And who hasn’t?) the stigma dictates that you deserve the problems you have to go through to repair your credit score. But before you get too cocky about how high and safely you are situated, and start looking off the end of your nose at the misfortune of someone else, the reality is that bad credit can happen to many of us at any time.
Let’s say you’ve got a reasonably good savings account, have made all your payments on time, have made more than the minimum payment on most of your monthly bills, and have lots of collateral. Then, all of a sudden, your wife is informed she needs immediate surgery. Or, you are in an accident, the vehicle is totaled, there’s hospital bills, and months of therapy. Or, you lose your job, or, your wife loses hers. Or, the Stock Market takes a plunge and the company you are working for has to let some workers go, which includes you, and then you can’t find a job. We can do a lot to help ourselves find a relatively good place of safety, but life happens, and we just aren’t in control of everything! The next thing we know, we’ve go ‘negative’ points on our credit reports, and our credit score has dropped.
Today, millions are living from paycheck to paycheck, and bad credit ratings loom just around unexpected corners. And what do you do when bad credit happens?
– Work harder and pay off the debt? If that’s possible, that’s good, but did you know that paying off a debt or making a late payment, current, will not improve your credit rating much, if at all? By paying an outstanding, delinquent debt, you will change the account status, but it will read, “paid collection, “paid was late,” or “paid was charged off” – which will still stand out as a very negative listing.
– Hire a credit repair service, or a lawyer? Did you know that credit repair companies often employ attorneys to legitimize their efforts and justify their high fees? These services usually just send out a series of letters on your behalf to the credit bureaus, and charge monthly fees (since the law forbids them to charge upfront fees), and thus, the more time they take, the more they make. Therefore, it’s not unusual for it to take several years before you see results from these companies.
– Speak to credit grantors, collection agencies, or credit bureaus? Typically, they tell you all credit items must appear on your report for seven years; when the truth is that negative listings cannot appear on your credit report for longer than seven years (10 for bankruptcies), but the credit grantor or the credit bureau, can choose to delete the negative credit listing whenever they see fit.
– Talk to Consumer Credit Counseling Services (CCCS), nonprofit debt counseling services that help consumers who are over their heads in debt? Did you know that CCCS, and companies like them, are funded and controlled by the credit grantors and bureaus? To whose side do you think their ears will be glued, yours or the credit grantors and bureaus?
Wouldn’t it be good….no let me change that! Wouldn’t it be GREAT if there was someone who created a system that….
– Had been voted the WORLDS’S BEST CREDIT REPAIR PROGRAM by two independent credit repair review sites?
– If this system was updated monthly for accuracy, and not every four or five years, like most programs?
– If this system was the easiest and fastest method for dramatically improving your credit score?
– If this trademarked method could increase your credit score in a matter of days, not months or years?
– If this system gave you $321 worth in bonus materials related to credit and finance?
– And if this system said you could take a full 30 days to review it and make sure that it was everything they said it would be…and more, or they guaranteed you your money back?
Well, someone has made such a system and is offering you his expertise. So if you are like so many others, looking to get their credit score back, there is a place to go to get real help. Or, if you would like to just improve on your credit score, but aren’t sure how to go about it, you too, can benefit from this.
Rose
Consumer Credit Counseling
Posted by admin in Financial Help on May 12, 2010
adreka1 asked:
Reduce or even eliminate interest payments on credit cards! Call 888-224-1708 to find out how.
Roberto
Why Consumers Ought to Check Their Credit Reports
Jessica Graham asked:
When a person desperately needs a loan, the fine line that determines individuals’ approval and denial is his credit rating. A credit rating is a score given by credit bureaus in accordance to the financial performance. For the last few years, when they have been good debtors, a positive score is received. But whenever late re payments and skipping on fees happen, negative scores are the result. All financial activities are recorded in everyone’s credit history.
Upon application at banks and lenders, these institutions dissect all credit ratings. And according to their standards, a person’s score will determine his viability as a credit risk. If a person’s score is 700 to 850 then it is definitely a winner. Without any fuss, they get approval of whether a car loan, personal loan or credit cards. But most importantly, they get to have a lower interest rate and more lenient repayment terms.
A score of 620 to 699 will get a loan but for sub-prime insurance premiums and higher interest rates. But for a score of 500 to 619, qualifying for a loan is a blurry chance. If it ever gets approved, it is usually on loans for bad credit. This means security pledge before an approval. Usually it requires valuable properties such as vehicles, real estate and so forth. It is also on a much higher interest rate and stricter payment terms.
This is the reality of credit scoring. If people are not careful enough, they will lose their chance for financial assistance. The best thing to do is for them to be aware of their chances. They should never apply for a loan blindly. To keep them updated on their credit score, they must get a copy of it yearly.
Every year, credit authorities hand out a free copy of an individual’s credit report. It has an updated report of their FICO or credit score as well. There are websites that provide a free copy of a credit report. Sites such as Truecredit.com and Equifax.com are examples.
Credit reports are important tools that can help people manage their credit rating. In this copy, they can keep track of all the payments they have made. If there is an error, they can correct it accordingly. This error might have greatly contributed to their negative score. If this is corrected, their score will be up some notches. Then they could have a better chance for loans.
Carolyn
When a person desperately needs a loan, the fine line that determines individuals’ approval and denial is his credit rating. A credit rating is a score given by credit bureaus in accordance to the financial performance. For the last few years, when they have been good debtors, a positive score is received. But whenever late re payments and skipping on fees happen, negative scores are the result. All financial activities are recorded in everyone’s credit history.
Upon application at banks and lenders, these institutions dissect all credit ratings. And according to their standards, a person’s score will determine his viability as a credit risk. If a person’s score is 700 to 850 then it is definitely a winner. Without any fuss, they get approval of whether a car loan, personal loan or credit cards. But most importantly, they get to have a lower interest rate and more lenient repayment terms.
A score of 620 to 699 will get a loan but for sub-prime insurance premiums and higher interest rates. But for a score of 500 to 619, qualifying for a loan is a blurry chance. If it ever gets approved, it is usually on loans for bad credit. This means security pledge before an approval. Usually it requires valuable properties such as vehicles, real estate and so forth. It is also on a much higher interest rate and stricter payment terms.
This is the reality of credit scoring. If people are not careful enough, they will lose their chance for financial assistance. The best thing to do is for them to be aware of their chances. They should never apply for a loan blindly. To keep them updated on their credit score, they must get a copy of it yearly.
Every year, credit authorities hand out a free copy of an individual’s credit report. It has an updated report of their FICO or credit score as well. There are websites that provide a free copy of a credit report. Sites such as Truecredit.com and Equifax.com are examples.
Credit reports are important tools that can help people manage their credit rating. In this copy, they can keep track of all the payments they have made. If there is an error, they can correct it accordingly. This error might have greatly contributed to their negative score. If this is corrected, their score will be up some notches. Then they could have a better chance for loans.
Carolyn
Credit & Personal Finance : How Does Consumer Credit Counseling Work?
eHow asked:
Consumer credit counseling can be governmental in nature, but it can also be offered privately, albeit with certain risks. Find out how to avoid consumer credit counseling withhelp from a registered financial consultant in this free video on credit and personal finance. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC
Lester
Debt Management: Debt Settlement a SCAM?
MiCasaMiDinero asked:
Most debt consolidation companies do nothing better than simply ruin your fico score in order to settle your debt. If you really want to work with an agency that will help you reduce your debt, contact a company member of “CONSUMER CREDIT COUNSELING SERVICES” (CCCS) More info at: sccrealestateuncensored.com/2008/repair-credit-legally-remove-negative-accounts/ micasamidinero.com/2008/reparo-credito-eliminando-legalmente-cuentas-negativas/
Clyde