Debt Consolidation FAQ

Frequently Asked Questions

Q: How can Consumer Credit and Financial Counseling of America assist me?

A: CCFC of America can provide you with the following free counseling services:

Debt Consolidation

• All bills are paid off faster

• One simple and often smaller monthly payment

• Improved credit

Debt Settlement

• All bills are immediately paid off or will be paid off in under one year

• Ex: If $3,000 is owed, $750 can be paid for the debt to be considered paid

• Improved credit

Debt Knock Down Program (only for individuals with a good bill payment history)

• All bills are paid off faster

• One simple monthly payment

• Improved credit

Q: Is debt consolidation a loan?

A: Our debt consolidation program is a process of restructuring your existing debt with your creditors. We will

negotiate with your creditors to obtain the lowest monthly payment needed to satisfy your current accounts.

Q: What will any of the above free counseling services do to my credit?

A: Creditors view repayment of any debt as a positive step towards resolving your obligation.

Q: Do I need to be a certain amount in debt before I can utilize your services?

A: No. Unlike some consumer credit counseling organizations, CCFC of America does not require you to have a

minimum amount of debt before we can assist you.

Q: If I don't want to consolidate my debt or utilize a debt settlement option, do I have any other choices?

A: Yes. You can enroll in our Debt Knock Down Program, which was created for individuals with a good bill

payment history. Click here for information.

Q: If I am late with a bill payment to one of my creditors is that bad?

A: Once a bill payment is between 30-60 days late, it is normally reported by your creditors as delinquent to the

credit reporting bureaus. In terms of your credit, it can be considered bad.

Q: What bills can I include in debt consolidation, debt settlement and/or the debt knock down program?

A: Click here for a list.

Q: I was told that after a certain period of time, my creditors could not bother me any more?

A: That is true under Statute of Limitations cases. In most states, the statutes of limitations law states that if a

creditor doesn't bring an action to collect their debt within six years of your last payment made, they may never

bring an action against the debtor in court. This doesn't mean that the debt is wiped off your credit report, it just

means that the creditor can never try and collect it from you.

Q: I don't have enough money to pay my bills at this time. What should I do?

A: Contact our agency. The longer you wait, the worse your credit can become. The longer your creditors wait, the

worse the consequences can be to you. Your creditors can take your house, car, cash and if that does not

satisfy the debt, they can make you liable for the difference.

Q: I've heard that my credit report can be repaired. Is this true?

A: Yes and no. You can have creditor and credit bureau errors corrected and deleted from your credit report files.

But, accurate account information can not be removed, permanently deleted or altered without it reappearing

with possible legal consequences. This rule does not apply if your creditor agrees to the changes and/or if the

credit bureau(s) do not follow proper protocol.

Q: How can I receive additional information regarding credit, debt, mortgages, loans, bankruptcy, etc.?

A: You can receive free publications from the United States Government and from CCFC of America. Click here

for details and for a list of available publications.

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