Ask the Dollar Diva By Dorothy Rosen • Bankrate.com

What are Consumer Credit Counseling Service agencies?

Dear Dollar Diva,
What is a Consumer Credit Counseling Service?

Consumer Credit Counseling Services are nonprofit organizations that help consumers deal with credit issues. Their mission is education, counseling and helping with debt management. There are almost 1,500 offices throughout the country, and their services are free or nearly free. The agencies' chief sources of funding are credit card companies and other large lenders -- the same demons who hound you nonstop when you can't pay your bills!

It actually makes sense when you think about it. Going to a CCCS for a debt management plan is often the last step before bankruptcy. The demons want to collect their money, and it's not going to happen if you file for Chapter 7 or 11 bankruptcy. So they win if CCCS helps you get yourself out of debt. And you win, too.

Here's what a CCCS can do for you in a debt management plan:

• Get the demons off your back
• Work with them to negotiate repayment schedules you can afford
• Try to get finance charges reduced or waived
• Develop and execute a payment plan you can afford
• Help you re-establish credit when your current debts are paid p>

If you participate in a CCCS Debt Management Plan, it will show up on your credit report. However, chances are, if you need this service, it's not the worst thing that's going to appear there.

DOROTHY ROSEN has a master's degree in finance, with a specialization in accounting, from the Kellogg Graduate School at Northwestern University in Evanston, Ill. Rosen has more than 15 years of experience in the financial arena, serving in Illinois and Florida as a certified public accountant, financial consultant, expert witness and educator. She is owner of Dorothy Rosen, CPA, a public accounting firm that serves individuals and small businesses.

-- Posted: Nov. 17, 1999