CCCS or Consumer Credit Counseling Service UK providers are Internal Revenue Service 501(c) 93 non-profit organizations. It can help you by offering an effective solution to your economic problems. All the CCCS companies provide a common set of services including Debt Management Plans, Budgeting Assistance, and Financial Education.
Why Should you Opt CCS Credit Counseling Service?
Mostly, the Credit Counseling Service is used when you get stuck in a huge amount of debt. However, this service is not applicable for the financially weaker section.
In fact, being active or availing a credit counselor to describe the information about credit cards or to help you plan a budget is an excellent way to get rid of the financial crisis.
If you note that there is a drop in the payment rates associated with your credit cards, then you can seek assistance from a credit adviser before the situation turns much worse. As soon as possible get help as it becomes easier for you to rectify the mistakes. With just a simple DIY technique you can resolve any such problems in the long term.
The DIY technique starts with budgeting, but it also includes credit card refinancing that involves
transferring the balance of your credit card to a no-fee balance account.
It shifts the balance with an initial 0% interest for a few months. But, it only works when the debt amount is low. So, if you need to pay off a huge amount of debt, then you need a more effective plan to get rid of it.
What are Debt Management Plans?
All the Consumer Credit Counseling Service agencies are in partnership with non profit consumer credit counseling service providers who offer DMPs (Debt Management Plans). These plans are specifically built to consolidate the customer’s debit and credit payments into one suitable monthly payment process.
Some of the benefits of these plans include concessions from the creditors including the elimination of late fees or reduction in the rate of interest.
- A single monthly payment to the creditors.
- A decrease in the number and amount of monthly payments.
- Personalized budgeting advice.
- Lower interest rates.
Usually, a credit card is designed to help you through a time phase of 20-30 years to pay off the debt at a minimum monthly installment. Debt Management Plans can be paid off in about 4-5 years. So, it can help you to eliminate your debt faster than traditional methods.
With the Debt Management Plan, credit counseling consumers get the benefit of a free confidential session that offers them expert advice and a workable budget. It helps them to manage their personal finance and to reduce their business debt over time.
Advantage Credit Counseling Service
Several individual business owners have been seeking assistance by hiring a consumer credit counseling service provider. It can help you to balance your finances and to reduce your business debt.
Perfect planning can help you by providing money management skills that can work for you throughout your lifetime.
CCCS can help you to understand your credit situation so that you can gain thorough knowledge about the costs associated with misusing a credit card. Consumer credit counseling is particularly beneficial for business owners who are suffering from huge debt burdens.
It helps them by providing a way out of their current financial crisis. If you have a low credit rating and a weak credit history, Consumer Credit Counseling Service can help you with the ways to repair your credit.
So, by hiring a Consumer Credit Counseling Service provider, you will get all of these benefits and many other distinct insights. Most of the debt management agencies employ customer credit counseling agents who offer help and advise individuals to find a way out of their debt.
Furthermore, CCCS providers can help you to consolidate and reduce your loan by fixing a mutual meeting with your lenders. The credit counselors of a CCCS agency are the ones who provide their customers with better ways of avoiding debt in the future. Moreover, they also guide you on how to save your money to eliminate your debt quickly.
Following are the specific assistance that a CCCS agent can help you with:
- They can make you aware of how to manage your business expenses with ease.
- They can help you to deal with harassing collectors.
- A CCCS agent can help you to understand all the issues concerning financial issues (associated with your credit).
- They can help you by providing advice on how to eliminate your debt.
- They can also assist you to avoid situations like bankruptcy.
The CCCS agent has the ability to work with you and create a proper financial plan like a budget or saving plan. Comprehensive plans can help you to manage your cash outflows and inflows with ease.
With CCCS, you get to solve your debt problems. Furthermore, it can help you to start your way towards a secure economic future.
How to Select a Consumer Credit Counseling Service Provider?
While choosing a debt management agency, you need to maintain certain criteria. The individuals must have proper qualifications, training, and experience regarding credit counseling employees.
The entire team must consist of experienced and proficient credit agents who have vast expertise in this field. Thus, it helps to provide a complete idea about their credit situation and how to improve their financial status.
First, they will understand your present situation and will find the ways through which you can save enough money and become debt-free within a short time.
However, to join hands with the pick the perfect CCCS provider in the UK, you can conduct online research to understand the background and practices employed by the agency.
As soon as you complete your research, there are queries that the credit counselors should answer. This will help you to pick the best one for you. Following are the aspects that you need to consider while choosing a CCCS provider:
- Make sure that the team of counselors is certified by the NFCC (National Foundation for Credit Counseling). You also need to know how does the company pays them. Be aware of paid on commission of the agents.
- Does the company have a license to operate in your state? Members of the NFCC always maintain standard and regular audits for data security, customer service, and counselor accreditation.
- Ask them to make a contract. Try to get everything in writing from them including services, fees, and the time when they complete the entire process.
- Does the company provide any materials or educational workshops?
- You can contact the Business Bureau or State Attorney General to understand the records of complaints or reports of the company and how they deal with that.
- What actions does the company take to prevent identity stealing crime?
For Profit vs Non Profit Credit Counseling
The National Foundation for Credit Counseling and Federal Trade Commission always recommended working with an authorized non-profit credit counseling service provider. They provide counseling at a minimum rate or sometimes it is free of cost.
The financial counselors of non-profit credit counseling operate under the guidelines of the organization and make sure that they act in the best interest of their customers. Usually, the non-profit credits are audited by the state.
Some non-profit credit advisers provide a regular or monthly newsletter that includes money-saving stories and tricks applied by people who have already eliminated their debt. Furthermore, they also organize workshops and offer economic calculators that can help you to track the entire process while reducing your debt.
Apart from this, the for-profit credit counselors always have an interest in selling the services and products of their company. They earn rewards from the agency depending on how many customers they have gathered for their free-originating program. Most of the time, it has seen that those free-originating programs don’t suit your requirements.
Key Benefits of Hiring Non Profit Consumer Credit Counseling Service:
By hiring a non-profit credit counseling service provider, you can avail a vast array of benefits:
- Helpful and genuine advice from certified and highly trained credit counselors.
- A non-profit credit counseling service agency always offers low-cost Debt Management Services.
- Superiors service that can help you to eliminate your debt with ease.
Hiring a Consumer Credit Counseling Service
Data from NFCC for Credit Counseling showed that member CCCS providers counseled more than 1.2 million customers in 2017. They also state that almost 70% of those enlisted in DMP are either paying or paid off their debt in a 4-5 year time.
The National Foundation for Credit Counseling also starts its own credit counseling program (Sharpen Your Financial Focus) that helps people to learn how to manage their debt more efficiently.
A credit counseling agency always tries to set its customers in control of their funds. It helps them to avoid bankruptcy. If the customers participate in debt consolidation, debt management, or debt settlement program, it allows a 3-5 year to complete the process and reduce their debt. But, if you want to extend the time than that to eliminate your debt, then it’s better to file bankruptcy.
Hiring a CCCS provider never has any effect on your credit score. But, if you participate in one of the counseling programs organized by the consumer credit counseling companies, then it can help you to pay off your debt within a short period of time.
Creditors can also make a note in your credit records that they are being funded by a Debt Management Plan. It won’t influence your credit score as long as the account is funded and you are able to pay off the debt.