CCCS - Bank Settlements/Agreements?

Question

Does anyone on here work for a debt consolidation or credit counseling service? If so, my question is directed to you.

What do the credit counseling service companies say or do with the banks that I can do on my own? What type of offers do they make the bank? Is there a certain % of total debt they start with? Do they make multiple counter offers back and forth or is it just a one-shot chance with the bank? I owe over $30k to American Express and had it down to only $3k about 2 years ago, but life happens and we had to live on the credit card for a short time, and the charges and interest just keep piling up.

Any and all comments on bank negotiations are welcome here.

Answer 1

I work for a credit counseling agency.  What you are talking about is a debt management plan.  Usually we have pre-existing arrangements and it really depends on the credit card company as to what they have agreed to reduce (payments, interest, or both).  I would suggest you talk to one of our counselors.  Its free for the counseling session and depending on your state, the fee to set up the DMP would be minimal or less than $50.  This is due to maitanence---we are non-profit and partnered with United Way.  Call us today. 1800-251-CCCS (2227) or visit us at www.cccsinc.org for more details.