Should I Do CCCS vs Debt Settlement? – Dave

“Dear Steve,

I am behind on my credit card debt to the tune of $35,000. I’ve looked into different options but I’m not sure if I should go cccs vs debt settlement?

What do you think?


Dear Dave,

For people that don’t know what CCCS means, it stands for Consumer Credit Counseling Service. These are nonprofit agencies that put together debt management plans based on what the creditors want. They collect money from consumers, send it back to creditors and keep a percentage of collected debt to help pay for their services. It is plain vanilla credit counseling.

Debt settlement is different. There are two types of debt settlement options. The first is a lump-sum approach where you have 60% of the value of the debt is cash you can use to settle the debt by paying back less than you owe. The second type are those groups that collect monthly payments from you until you have enough to settle with. This second approach often leads to a very damaged credit report and continued collection activity.

If you have enough cash on hand to do a lump-sum debt settlement, I’d suggest that first. But use a professional debt settlement agency to do it for you. They know the terms the creditors offer and will negotiation for you without emotion and fear.

If you have fallen behind on your debts and the amount due keeps rising, then consider a debt management program, like CCCS. Click here for debt management information.

Lastly I would consider the installment debt settlement approach. It can be effective but only for the people that are prepared to take the continued collection pressure and threats.

I hope that helps you to decide which path you want to follow. Let me know if you need more help.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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