Frequently Asked Questions

1.Question: What is The Process? How does your program work?
Answer:  You will begin by consulting with one of our qualified, professional counselors.  They will review your financial situation with you at no charge.  In the initial counseling session consumers review current spending habits and the counselor makes recommendations for budgeting to help you meet your financial goals.

Christian Credit Counselors offers a comprehensive Debt Management Plan to assist you.  During the free initial counseling session the counselor advises you about your budget as well as payment options through the Debt Management Plan with your specific debts.  Following the consultation we will then contact your creditors to negotiate new payment arrangements.

2. Question: Will creditors know I have an appointment?
Answer:  We do not notify your creditors that you have an appointment.  If a creditor calls to verify you have an appointment, we will assume it is because you have told them, and we will verify the date and time of your appointment.

3. Question: Are most creditors willing to work with Christian Credit Counselors?
Answer:  Yes.  Since most of the creditors are usually not able to make individual arrangements with each consumer, they are supportive of our programs.  Our professional counselors can evaluate your situation and recommend a solution to your financial problems.  Creditors recognize the need for the financial education we offer.

4. Question: Why will creditors reduce payments through Christian Credit Counselors but not necessarily on an individual basis to me?
Answer:  We serve as a neutral third party and our plan is accepted and endorsed by most creditors.  We have 20 years of experience and a good working relationship with the creditor community.  Creditors will make concessions through Christian Credit Counselors because they know we treat all consumers and creditors fairly.  We have a solid reputation for offering counseling services and a Debt Management Plan that really assists consumers.

5. Question: What types of fees do you charge?
Answer:  After reviewing your debts, and your individual financial situation, the counselor will be better able to inform you of the fees that may be included in your Debt Management Plan.

6. Question: I thought you were a non-profit organization, why do you charge fees?
Answer:  Unfortunately we are not able to support our services by outside contributions alone, and must be assisted by the clients we serve. T he one time set-up charge will go toward our efforts in notifying your creditors of your enrollment, and the set-up of your account.  The monthly fee helps us support our non-profit program by covering the cost of staffing, day-to-day operations, postage, and financial eduation.

7. Question: Will my credit cards be closed or cancelled?
Answer:  As part of your enrollment in our program, your creditors will close your cards and you will be unable to use them.  This practice prevents clients from accumulating additional debt, while they are working to pay off their balances.

8. Question: Will I be able to re-open my credit card account(s) once I have paid off my balance?
Answer:  Based upon your payment and credit history, your creditors have the option of deciding to leave your cards closed, or re-open your accounts.

9. Question: Do I have to have a minimum amount of debt to be enrolled?
Answer:  We do not require a minimum amount for a client to be enrolled.  We are here to assist regardless of the amount.

10. Question: Where are you located? How long have you been in business?
Answer:  We are a national, non-profit organization, based in Carlsbad, California.  CCC was founded in 1990 in Southfield, Michigan, where we still maintain a licensed and bonded office.

11. Question: If I enroll, how long will it take for me to see reduced interest rates and eliminate late fees and over-the-limit charges?
Answer:  During the first month that you are enrolled in the program, we will contact each of your creditors and/or collectors.  The letters we send are called "proposal letters" and request reduced interest rates or lower payment arrangements.  Creditors usually return the proposal letters within 30 days, authorizing your new payment arrangements.   After the receipt of those proposals, it generally takes 1-3 months of consistent creditor payments for delinquent accounts to be brought current and, for you to see a reduction in interest rates and late/over-the-limit fees.  The counselor will be happy to review this with you during your free consultation.

12. Question: I have a _______Master Card or Visa (etc.) what type of interest reduction can you offer me on that card?…or do you stop the interest?
Answer:   It depends upon the creditors you owe.  Different creditors have different interest rate reductions that we have been able to negotiate over the years.  The interest payment we are able to offer our clients is based upon the agreements we have with each creditor.  During your consultation the counselors can review each of your debts with you, and provide you with the precise percentage based upon our agreements with creditors

13. Question: How long will it take to complete the program?
Answer:  That will depend upon the number of debts you have, the amount of each debt and the payment you are able to make each month.  During your free consultation, the Counselor will be able to give you a specific number of months that it will take to complete the program.

14. Question: How will this affect my credit rating?
Answer:  The number one factor that affects a credit score is MAKING PAYMENTS ON TIME.
Most potential lenders require a minimum of two years of consecutive, on time payments, in order to consider you a positive credit risk.  Christian Credit Counselors' Debt Management Plan will help you make arrangements to bring delinquent debt payments current, make on time payments, and then keep you current until you are debt free.  Our counselors will review your credit report when you enter the Debt Management Plan and explain specific factors that may be affecting your credit rating.  While Christian Credit Counselors does not report your payment history to the credit bureau, your creditors will continue to report your payment history while you are enrolled in a Debt Management Program.

15. Question: If I'm not delinquent, is a plan still possible?
Answer:  Yes.  A DMP may offer you the convenience of consolidating your debts in to one payment. Remember however, your cards will be closed, and the creditor does have the option of reporting your enrollment to the various credit bureaus. We do know however that some clients are "artificially current", switching the balance from one card to another, but never really being able to pay back their debt.  During your consultation, your counselor will review your individual situation and assist you with making a decision about enrollment.

16. Question: I believe I have errors, or incorrect information on my credit report, can you help?
Answer:  We may be able to assist.  One of our counselors would be happy to assist you in completing a free Credit Report Review, and provide you with suggestions on how you may begin disputing and correcting inaccurate information on your credit reports.

17. Question: The debts I have are old. I don't have my statements. Does that matter?
Answer:  As part of the free consultation, a counselor can request your credit report in order to identify and review your accounts.

18. Question: I am interested in enrolling in your program, but I am current and not behind on my debt payments. I do not want to fall behind.  If I enroll, will I fall behind while you are contacting my creditors and setting me up in the program?
Answer:  During your counseling session, make sure your counselor is aware of your current status.  They will be able to work with you to determine the best solution for your situation.

19. Question: Do you work out settlements with creditors?
Answer:  Settlement offers are one-time payments to your creditors in lieu of full payment. We do not work out settlements with creditors, and most creditors will not accept payment plans on settlements.

20. Question: How does this program (A Debt Management Plan) differ from Chapter 13 Bankruptcy?
Answer:  A Debt Management Plan is a 100% payback to all creditors.  Unlike in bankruptcy, all parties (creditors, the consumer and Christian Credit Counselors) are participating voluntarily.  Most creditors look at a Debt Management Plan as a more positive alternative for consumers to solve their financial problems.

21. Question: Does Christian Credit Counselors report to the credit bureau on a monthly basis? How long will this stay on my credit report?
Answer:  We do not report any information about your Debt Management Plan (DMP) to credit bureaus, however the majority of the creditors will still report your individual account payment history to the bureaus.  If you enroll in a DMP, some creditors will note that fact on your credit report.