Consumer Credit Counseling Services (CCCS)

You've seen the ads. Those sweet, kind people with sympathetic faces assuring you that they can help you get out of debt quickly and painlessly. You know they're honest and sincere because they tell you they're a non-profit company. The solution to your debt problem is just a phone call away - right?

There are scam artists out there who have no shame. They will take advantage of anyone in need. Whenever some group of people in our society have a need, you can depend on the scam artists moving in. The debt explosion is no exception.

Many of the consumer credit counseling services you see advertised on television are scams. They will promise you the moon, charge you enormous fees and in the end do little or nothing. Or worse yet, what they do may leave you worse off than when you started.

Some of the more heartless and aggressive outfits have arranged links with religious organizations in an effort to appear more respectable.

There have even been reports of credit counseling services that took huge sums from their clients by promising to make their debt payments for them. The payments never happened and the clients credit ratings suffered terribly.

Never ever deal with one of these firms without doing your homework first. Call the Better Business Bureau in your area. You may be shocked at what you hear. You might want to ask your local chapter for a recommendation on a local credit counseling service. Never deal with a credit counseling service without first checking them out.

Never consider using a credit counseling service if your income isn't stable. You must be able to make payments over at least three years. If you can't, your credit counseling service will have little with which to negotiate.

If you do use one of these services, always get a complete list of their fees before you give them a dime. Ask questions until you get a crystal clear picture of what they will charge you. These outfits are famous for initially offering low "come on" fees that explode later when hidden fees are piled on.

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