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Debt Reduction Options


There are many methods to paying off debt. Trying to navigate the different options can be anything but smooth sailing. CCCS is dedicated to helping consumers relieve themselves of the burden of debt payments through goal setting, smart planning, and dedicated follow through.

Here are some of the options that you may consider when choosing a debt reduction option.

Debt Settlement

Debt settlement is a form of debt reduction where you and your creditor agree on a reduced balance owed that will be considered as payment in full. Debt settlement can hurt your credit score almost as much as declaring bankruptcy. Some debt settlement companies may advise you to skip payments while they negotiate repayment and this will definitely impact your credit score.

Debt Consolidation Loans

If you are struggling to manage your debt from credit cards, medical bills, student loans or other debt, a debt consolidation loan may be a viable option. A debt consolidation loan is a loan from a financial institution, usually at a lower interest rate that will pay your creditors and you will be left with a monthly installment payment to the loaning financial institution. There are situations where a debt consolidation loan can harm your credit score, so be certain to consult with one of our nationally certified credit counselors to make certain debt consolidation is the right choice for you.

Debt Management Program/Plan (DMP)

A Debt Management Program is an agency-administered debt repayment plan. These agencies work with you do develop a budget, a manageable plan to repay your debt and will work with your creditors to reduce monthly payments and interest rates. The DMP is designed to run for three to five years, after which all your credit cards on the plan will be paid in full. CCCS is proud to be a licensed DMP agency, and our certified credit counselors will be able to assist you with exploring this as a route to becoming debt-free.

Budgeting and Repayment

Sometimes debt reduction is as simple as finding room within your current budget to make due payments or even larger payments. However, proper budgeting is a challenge for many individuals, even those who are knowledgeable about finances. Our nationally certified budget counselors can help you determine where your money goes each month and can lead discussions about priorities and self-restraint. There is no fee for our basic budget appointments.