I used CCCS twice, the first time I had about $6000 total in debt and was able to pay off my debt in a matter of months. My interest rates were all lowered, and within a couple of months of paying off all of my cards I was able to get a couple more credit cards to help rebuild my credit. Move foward a few years, post college I had close to $12000 in debt. I again called CCCS and they were able to negotiate my rates down with my creditors. My payment was reasonable, I believe it was less than what I was paying before plus I was saving money on interest rates. however, I wanted to start paying more towards my credit cards and CCCS charged me MORE fees. It turns out they charge consumers a percentage of the amount as their fee. So their "$20" feel can be as high as they want, I think it was 7 or 8% with the company I was with. So I figured it was just the same as paying off my cards myself. I ended up cancelling the CCCS service and just paid my cards off myself. My interest rates went back up, not quite as high but I figured if I had to pay a service to pay my bills I'd rather do it myself. It did show up on my credit report, but I was approved for a home loan and other credit cards after a year or too. So in my situation it wasn't as bad as other's seem to view CCCS. Just make sure to get all of the facts, fees, etc before agreeing to anything.

Chase got $75 billion dollars from the government and have only paid back $25 billion - they still owe $50 billion. Many other banks took money and haven't paid it all back either. So, the next time someone from one of these banks calls you, tell them you'll pay your debt when they pay theirs.

I always thought Clark endorsed CCCS, but my mother said on the show to check out NFCC. I found this section. Are they affiliated somehow? CCCS's monthly payments were too high for us to afford, so I wanted to check out NFCC but not if they are the same organization.

This DMP with CCCS WILL hurt your credit. As a matter of fact, it looks as bad on your credit report as a bankruptcy--hence the term "soft" bankruptcy. And, it will stay on your credit report for at least 10 years.

Does anyone know if this DMP with CCCS will hurt your credit? Will it look as bad on your as bankruptcy? Will i stay on there for 10 years?

6 years ago I was credit card debt free, due to some circumstances beyond my control (I had a stroke 2 1/2 years ago) and many many more that were under my control. I have accumulated in excess of $80000 in unsecured debt. I had always paid on time and more than the minimum. Then when I was sick, I paid a bill late by 2 days. Then I had another stroke & began to develop dementia resutling in various late payments ALL made in less than a week or 2,probably 4 late payments in 2 1/2 years. As a result of a the late payments, those cards increased the rate, understandable, but, others that were paid late, and nothing late on my credit reports, ONLY because of the amount of debt, low interest credit cards have gone to 24.99% and 29.99%, making the payments astronomical and the ability for me to pay them off impossible. Found out that my husband who is on 70% VA disability will be losing his part time job in January, decreasing income $1600 a month, the amount we have each month for gas, food, household items, repairs, on vehicles & home, homeowners insurance, life insurance, etc. He has worsened and we will apply for 100% VA and for SS for him. That could take 6mos for VA and years for SS. He should have not been working for a couple years now, but, he was able to work as he could if the work was completed. Checked numerous Debt Solution programs and they want you to pay them xxx amount of dollars a month, which they hold while they negotiate payments with your creditors to settle it, then they pay those off as the money accumulates. In my circumstance, these are my debts that I accumulated knowing full well I would have to repay at a reasonable interest rate, which I could still do but, not at the rates I am paying now. I have no excuses for it.....so does anyone have any ideas how to handle this?

Want to warn you all also. We had a lock rate of 4.9 %. Had a $24K balance on the card, they jacked the minimum payment from 2% to 5%.Also most tripling our payment, imagine our surprise. Every payment was on time,now we have a big problem.They said tough pay it,which is just crazy,cause they went from getting all of their money to crap I don't know.

Just a thought, but it seems to me that the banks are trying to force creditors into not paying their debt so as to 'write off' the balances owed. Banks win twice with the bailouts and the write-offs which they claim as a loss. Any thoughts, Clark?

just got back from the banruptcy attorney, guess what? even though i want to file serperatly because the 70,000 in dept is in my name, they still consider my spouses retirement. we have combined total income of 7300.00 that will be reduced next month by 24,000 a year. the attorney says we can file chapter 7(restructure)which he says we can pay it all bacl 1500.00 a month for 5 year! If I don't have it now where am i going to get it! Don't go to Barry and asscoiates!!!! they really don't care about you! Guess what not goig to pay my cards! Was doing fine till they jacked up the interest and payments! Sent them all certified letters offering a payment, no luck! I don't have anything so keep putting the liens!

Clark, we have 17.000 in credit cards The highest interest rate is 27%. We keep paying and paying the balance is just staying there.So, we decided to take our 401k and just pay them off.my question to you is we are paying ourselves back over the next 4 years,plus the interest % is 3.75.Can I negotiate to ask for a reduction on the principle amount as an incentive for paying the total balance off. Please advise signed K. Cunningham I love your show..!!!!I want to buy your books as well.. Thanks you so much!!

Same comment as the last two posts, rates on credit cards have been increasing, and increasing, and now, we just received an "IMPORTANT NOTICE REGARDING CHANGES..." from Chase Bank, that they are changing the MINIMUM DUE FROM 2% OF YOUR PREVIOUS BALANCE TO 5% EFFECTIVE AUGUST STATEMENT.

Are they crazy, are they trying to drive everyone into bankruptcy, or better yet, which we are now contemplating, do we just walk away, do we offer them pennies on the dollar???

We can not afford this new increase!

We just met with our banker to get a loan to close out all credit card debt, which is in the process now, but we are seriously considering walking on our Chase accounts.

This is not in our nature, we are hard working small business owner, with very good credit, but.....
We are concerned of course what this would do to our credit rating, we think we know, but nowadays...

Any suggestions please???!!!

I have similar experience wih credit card companies as "laid off egieer" and just about ready to stop payment on one card that has most of my debt of 22K due to career issues. Chase has increased the interst on that debt for the third month in a row and refused to negotiate any reduction at all. The question is, if I do stop payment on this card, will this affect my open credit with other companies such as Discover which I use on a regulr basis for basic groceries and gas needs and pay off every month?

Both AMerican Express and Visa - Banbk of America refused to lower the interest rate and freeze my credit card accounts even though I have been unemployed for two years. I have done everything I can to work with them but they seem to think I have no other choice. They are wrong. I quit making any payments to them last month. WHen thye call threatening me, I told them to come to my house in person and we will talk. That was two weeks ago. They have uncollaterialized debt and will not collect anything from me.

I am the first to admit that I have too much in credit card debt. However, I currently have a 735 credit score (which is down from 6 months ago.) Reason it is down? One credit card company closed an open line of credit for $13,000. This negatively impacted my debt to available credit ratio. What do you think happened then? Every credit card APR went up! What do you think happens next when my minimum payment triples on all my accounts? Hmm...maybe I stop paying them all together. Tell me how that is a solution that helps anyone? BTW--I checked my credit score. Nothing negatively reported, not a single late payment. However, US Bank raised my rate from 5.99 to 15%! Now, I am seriously looking at other options.

My rates have also been increased; never been late and pay more than minimum. Now Capitol one sends me checks every day to use at a rate of 18% of course!! I am collecting them to shred and send to the CEO. The president needs to do more about this excessive interest rate increase now. What they are proposing is not going to help anyone during these trying times. I think the CREDIT BUREAU has way too much power as well!

As a protest to how credit card companies have treated customers many are just simply refusing to pay . . . there is just something wrong with paying the public 1-2% on savings and loaning it out at 10-30% . . . this used to be called usury.

With Congress bailing out banks, insurance companies and car companies, it is about time to help consumers get control of their credit cards. I dont want help paying off what I owe, just a fair interest rate from the same banks taking bailout money of which I have paid in taxes. Citibank has raised my rates twice in the last year which doubles my monthly payments and the majority of it going to interest.They are taking it out of both pockets!

I took advantage of a 0% balance transfer from Discover and used most of my available balance. I paid on it monthly and paid it IN FULL (over $10K) prior to the interest 'kicking in' in late March. I did my part, but they 'rewarded me' by sending me a letter telling me my credit line was now going to be reduced to only $500.00. What a great company, eh? Tear up your card; they aren't worth it...

I have no expectations that ANY of the main issuing creditors will do anything for the consumers. Recently I called Citi after seeing their T.V. ad with regard to reducing their interest rate. FAT CHANCE....no way..these people are only interested in taking advantage of the interest rates.....INCREASING THEM!

JJ's big picture is right. Washington, The Federal Reserve, Wall Street and the banking industry will never change. Do you know why? It's human nature to gamble with other people's money. Wouldn't you do the same?

If you gamble and bet right, you make tons of money. If you gamble and bet wrong, the government will bail you out. If you don't gamble, you get fired. Did you hear that? If you don't gamble, you get fired. Why? Because during the "good" years, everybody else is gambling too.

Every decade or so, banks make really, really bad loans from a long-term perspective that are "good" for the short term (good only for a few years). If you are not following the herd during those good years, your return will be less than everyone else and you will be fired.

As an individual investor, you can make tons of money with this pattern. Now is still a great time to buy financial stocks and ride up the next wave. Just don't get too greedy, because the next fall will happen.

I completed a CCCS program in the 90's and when I was done my credit had an "In Counselling" status that took 7 years to drop off after I had spent three years paying off the debt. I might as well have declared bankruptcy..

Brian, Your right. Another bail out for stupid and reckless people. By bailing them out they will NEVER learn.

I work at a CCCS agency and this is indeed a great initiative. The DMP is designed to get clients out of debt within 3-5 years, not necessarily lower their payments. This program is actually saving our clients hundreds of dollars a month.