We are on the verge of signing a contract with CCCS (Money Management Itl) but the complaints against them are not good!
We currently do not own a home, but are making fairly large payments on 2 cars and have almost $40,000 in cc debt…not to mention 2 student loans totally about $25,000 that are in forebearance.
My husband makes about $75,000/year and I bring in about $400/month by doing childcare at home. Needless to say our credit card debt is out of control and we are starting to get behind.
It seems the problems with CCCS and late payments are b/c they require 10 additional days after your payment date to them to process your payment and distribute to your creditors. If you have payments due within that time frame they may show up late. Does that seem right? So, my understanding is, if I change all of my cc due date to at least 10 days after my payment date with CCCS then I should have no problems with late payments to the creditors.
We have 2 cards that are going to be going up to 29.99% APR in a few months and when that happens we will not be able to afford the minimum payment. I guess my ulitmate question is, is it a risk to enter into one of these programs through CCCS and could my credit be even worse then before? Why not just file bankruptcy and use the extra money to put into savings (as you mentioned in an earlier email). Thanks!
I’m not sure what complaints about Money Management International you might have seen. As an NFCC Consumer Credit Counseling Service office goes they are at the forefront of technology and processing.
There is naturally going to be delay in forwarding your payment. Some places might actually still hold it up to 30 days. If I was MMI I’d probably do the same thing and hold it for ten days. A bank debit or ACH out of your account can be reversed but MMI not notified for several days. If they hold the funds for a limited period of time they can filter out the reversals from payment they forward on through the MasterCard RPPS system.
The due dates can be adjusted but that would be best discussed with your MMI representative. But it can take a few months to get things in synch. I’m less concerned about the late posting than you are. If the creditor has been notified and acknowledged you are in a credit counseling program they will not charge you any late fees or report a minor delay to the credit bureaus.
But from what you told me I have a bigger concern. While the student loans fester in forbearance they are simply ticking away and growing balances with interest being charged against them. I really need you in a position where you are paying those loans down right now, first. Those loan payments are a priority debt and factoring those into your monthly spending plan you should then see how much money you have left over for debt repayment and saving.
There is no reason you should not investigate bankruptcy. In fact you should do it before signing with any credit counseling agency. Click here to find a local bankruptcy attorney you like. Make an appointment and go in and talk to the attorney face-to-face. After the appointment, go home and then mull it over. Armed with the facts you can make a good decision for you about which solution will allow you to make your student loan payments now, save money for an emergency fund, and deal with your debt.
Please let me know what you decide to do.