CCCS vs Debt settlement

Strictly my opinion, CCCS was very successful for me, I wouldn't have even considered DM, but it's really up to the individual and the amount of debt involved. Every situation is different.

I almost chose a cccs service, but the monthly payment was high as well as a long term. DM came in with a lower monthly payment and a shorter term. So, I will most likely chose them. But, the counselor at cccs told me NOT to deal with a DM company. Scare tactics to eliminate competition? Or, are DM companies bad news?

I went with a non-profit CCCS.

CCCS is non profit....there really is no competition.

It has nothing to do with the individual and amount of debt. It has entirely to do with your ability to pay back the debt and your situation with your bills. If you're shelling out more than you're making, then the hole is just getting bigger - CCCS will not always solve that - but debt settlement will; so will Bankruptcy. Debt Settlement and Bankruptcy aren't programs designed to leave you destitute, they're designed for specific people in specific situations to give people a fresh start.

I agree with Nico - "they're designed for specific people in specific situations to give people a fresh start" is completely accurate.

I have another thread addressing one of the drawbacks of CCCS that I still haven't heard an answer back from, but it involves the fact that CCCS is reported on your credit report, and many lenders view this negatively. debt settlement on the other hand is more of a private matter - there is never a record that you employed a third-party to help you deal with your situation. Your credit report just says 'settled' or an equivalent, but nothing about third-party intervention.

Disclaimer: The following comment is not intended to trash-talk the CCCS industry, I'm just making a point.

Non-profit doesn't really mean anything. It is an accounting term that simply requires the company to not make more than a certain amount each year. What happens if they make too much money? Christmas bonuses.

Also try googling "Fair Share CCCS" and see what pops up.

Post-disclaimer: I have no problem with CCCS, I have a problem with companies that hide behind their 'non-profit' status, masquerade around like they are the white knights of the debt industry, and 'warn' consumers of otherwise legitimate debt solutions. Disagree? Look at the IRS, they've shared my opinion since May 2006 when they strippped a bunch of CCCS companies of their non-profit status.

Edit: In summary, the CCCS vs Debt Settlement debate is an ongoing discussion, even within the industry. As Nico pointed out, settlement has it's own niche market, and a good settlement company will explain this. In some cases, there is not a definitive answer as to which path you should take, and you simply need to decide what is more important to you: your credit score or saving a ton of money and being out of debt sooner. I'm pro-settlement, but have personally referred people to CCCS when their situation warranted it. Please for the love of God whatever you do, do your homework before trusting a company. You don't necessarily need to 'shop', just get an education, a good company will take the time to help you do this before you commit to giving them a dime.