We find debt counseling counselors to be a wonderful tool to help you understand your debt problems, solve them, and move on. Considering that financial hardship is so widespread today, taking the steps necessary to understand and resolve these issues in your own life is the only way to really be successful in debt management.
It is very important that you include every debt and expense in your money management budget. All the debts and expenses included in your budget are taken into consideration when CCCS negotiates on your behalf.
However, there may be some debts that they are unable to place into your debt repayment plan including:
- Secured debts, such as mortgages and car loans
- Current bills for utilities
Some debts will be considered and may be included on a case by case basis. Some of these may include:
- Past due portions of utilities
- Past due taxes
- Judgments
More Limitations
Debt Counseling Services cannot reduce the principal you owe on a debt. To reduce principal balance on debts, you may want to consider debt negotiation & debt settlement services.
CCCS Debt Counseling cannot freeze your credit rating, or protect your credit. They will not report your participation in their debt management program to credit bureaus. However, some creditors may report which could negatively impact your credit rating. If you maintain your obligations under the Debt Management Agreement, any negative impact is greatly reduced. Once you have made 3 or 4 months payments under your DMA, most creditors will recreate your account and place its status as current in your credit report.
Counseling Essential Preparation
You can now see why it is so important to have a draft of your budget ready when you consider debt counseling.
Learn What You Can To Prepare
Tools and resources are provided to help you with money management skills that will teach you to create a budget you can live with, educate you about your personal finances, and start you on the road to true debt relief that will last a lifetime.
