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Debt
Management Plan FAQs
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about the CCCS Debt Management
Plan
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24/
7 365 days a year
Free Counseling Service |
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Will CCCS contact
my creditors about the Debt Management Plan?
How long
will my Debt Management Plan take to complete?
What can
I do to ensure success in my Debt Management Plan?
How much
will it cost?
Must all
of my creditors be included?
What if
a creditor does not accept the Debt Management plan?
Will
CCCS contact my creditors about the Debt Management
Plan?
Consumer Credit Counseling
Services sends a proposal letter to each of your creditors
when you enter the Debt Management Plan and after you
have submitted all of the documents requested by your
counselor. This letter advises each creditor that you
have sought debt repayment assistance through CCCS and
requests the creditors support. The proposal letter
will identify the following for each creditor:
Your account number
Your total indebtedness
Your net income
Your living expenses
The names of creditors in your plan
The amount owed to each creditor in your plan
Your proposed repayment amount
for each creditor
The date the creditor may expect a payment
The reason for your plan
How
long will my Debt Management Plan take to complete?
It takes approximately
36-60 months to repay debts through a DMP. Clients
enrolling in a Debt Management Plan receive an estimate
of the length of time it will take to complete their
DMP. This written estimate, or pay-out forecast, identifies
all debts that are included in your plan, the total
estimated debt owed to each of your creditors, the proposed
payment to each creditor, and the anticipated number
of months necessary to eliminate the debt, assuming
all payments are made on time and in full. As your
plan progresses you may request an updated version of
this forecast by contacting our Client Services Department.
What
can I do to ensure success in my Debt Management Plan?
1. Make your deposits
on time. Auto-deposit provides the most timely,
convenient and ependable method of payment by deducting
your monthly deposit directly from your checking or
savings account. You may send cashier’s checks
or money orders. No personal checks or cash are accepted.
2. Closely monitor your creditors’
statements. It is up to you to monitor your monthly
statements to ensure creditors have reduced interest
rates or stopped late fees, if applicable, and CCCS
payments are being properly credited. If your specific
creditors reduce interest and fees, it can take up to
three months before these reductions are noted on
your statements. CCCS does not see your monthly statements
from creditors. Keep all statements in a folder or binder
in case you need them for future reference. Also, keep
us informed if any accounts are turned over to collection
agencies or if any creditor notifies you of an account
number or address change.
3. Stay in touch. Contact Client
Services immediately if any problems arise. If you don’t
understand something about your creditors’ statements
or mailings, don’t panic! Call or email us. We’ve
been dealing successfully with concerned creditors and
clients since 1964.
4. Don’t make any payments
directly to your creditors unless you have discussed
this with our Client Services Department. Send all deposits,
including any late or extra payments you might be able
to make, directly to CCCS.
5. Don’t apply for additional
credit without first talking with your counselor. If
you do, you will place your DMP in jeopardy.
6. Update personal information.
Contact us immediately with any change in your name,
address, telephone number or email address.
7. Don’t miss deposits or
make late deposits to CCCS for any reason. If you do,
your creditors may resume their regular collection activities
or reinstate regular interest rates and fees.
How
much will it cost?
CCCS is a non-profit organization offering
its counseling services to you free of charge. If you
choose to enter a Debt Management Plan, there is a one-time,
$35 set-up fee. You also have the option of making a
volunatry contribution each month on the DMP, up
to a maximum of $25 a month. Though our average client
contributes $14 a month, it is completely voluntary.
CCCS is funded primarily from fair
share contributions from creditors. Debt repayment plans
serve the dual role of helping you repay your debts
and creditors to receive the money owed them.
Must
all of my creditors be included?
Creditors work with CCCS because they know
they will be treated fairly and equitably. In most cases,
all unsecured debts that you owe must be included in
the Debt Management Plan.
What
if a creditor does not accept the Debt Management plan?
In the event that one of your creditors
is unwilling to accept the proposed payment, our Creditor
Relations Department will contact you to see if you
can adjust your budget to meet their requirements.
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