Debt Settlement Questions & Answers

Debt Management Plans (DMPs) offered by  Consumer Credit Counseling Services (CCCS) can be an effective debt relief option for those that mostly need budgeting help and a reduced interest rate to pay off their debts in full. 

DMPs generally involve lower amounts of debt than debt settlement programs may accept. While enrolled in a DMP, consumers generally do not receive creditor calls; however typical program lengths are around 5 years in duration. A consumer’s involvement in a DMP may also be reflected on their credit report. Consumer’s that choose CCCS programs generally do not have problems making continued payments on their credit cards, and simply need structure and a modest interest rate reduction.

CCCS often receive funding directly from creditors by what's called a "fair share" payment.  This is often based on what the CCC can collect from you.

In comparison, debt settlement programs are generally for consumers that are experiencing a financial hardship and are designed to settle the entire outstanding balance for less than the consumer owes.  Also, debt settlement companies do NOT receive funding from creditors- our interests are aligned directly with our clients' interests.