Does anyone know the difference between Debt Settlement Companies and CCCs Companies? Which is better?

I have some credit card debt and I don't know what credit card company to consider, either a "CCCS" or Debt Settlement company. Is there a better alternitive to either?

Does anyone know the difference between Debt Settlement Companies and CCCs Companies? Which is better?
i personaly work for the credit card collections department of a large UK based bank, and am faced with people in financial trouble everyday. rather than constantly harrass our customers we are trained to recomend debt management companies to card holders who are in financial trouble. consolidation loans like you would see on the televisoin, basically loan you the ammount you would need to pay off all your card debts, and then you pay them back over a period of time, many people find this easier because its only one bill to pay every month, rather than 1-10 credit card bills each going out on different days, however the interest on these cards is usualy higher than the cards interest, and as such costs more in the long run, they attract people by offering low monthly re-payments, however this just allows them to drag out the loan even longer, earning them even more money. as a collections specialist i never recomend consolidation loans





now for debt management compaines, these companies are a little different, they will usualy produce a financial assesment for yourself (the card holder) also known as an income and expenditure report. they will then decide how much you can pay to each creditor each month, they send the details to all your creditors and then if your offer is accepted you usualy get the interest and charges frozen on your credit card, and are allowed to pay back a lower ammount than usual for a fixed period of time.


one thing i will say is read your contract through very closely, as some debt management companies (such as gregory pennington ) actually wait 3 months before paying any of your creditors, even though you will be paying them money every month to sent to the creditors (and to pay for thier service) this pushes you further into arrears, and has caused some people to be issued default notices, the company do this to both earn interest on the money in thier holding accounts, but also to pro;long the ammount of time you will need thier services. in my job i only ever recomend FREE debt management compaines such as payplan, the CCCS (consumer credit counceling service) and your local CAB (citizens advice bureau) all of these comapines provide equal or better service than those you would pay for. hope this helps you out.
Reply:debt settlement, call your debt and "Settle". This means that if you owe 10,000 to one company, they offer the company 5,000 now. If they refuse, they threaten the company with bankrupcy. They still charge you 10,000 of course and simply reduce the interest rate on the money that you now owe them.





The best option is to get a new credit card with 0% on transferred balances. Transfer the highest ones to it and the cancel them. Keep doing that, until you are out of debt.
Reply:There's a lot of information about debt consolidation on this website. There are a number of ways to do this and it depends on your level of debt and your circumstances as to which would be best for you.





Do your own research, get some quotes and choose what seems 'right' for you.





Good luck!
Reply:CCCs is preferred.

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