Introduction To Debt Consolidation Programs
Glossary of Terms.
Our goal is to remove the mystery about these programs, answer your questions
and help you find the right debt relief for your personal financial situation.
To that end, here is a listing of commonly used terms to help you understand
more about consolidating debts.
AICCCA
The Association of Independent Consumer Credit Counseling Agencies is
a national membership organization, established to promote quality and
consistent delivery of credit counseling services, including:
- Fee standards requiring the lowest fees possible;
- Timely creditor payment requirements;
- Offer services regardless of race, religion, age, or financial status;
- Maintain non-profit, licensing, bonding, and other legal requirements;
- Counselors must be trained, qualified, and certified;
- Agency must be accredited and recertified annually;
- Financial records and client accounts are audited annually;
- Provide educational opportunities for clients including money management,
budgeting, credit counseling and debt management.
Debt Consolidation Programs Glossary
Consumer Credit Counseling Service, CCCS, credit counseling, debt management
program, debt consolidation companies, and debt counseling are all terms
synonymous with debt consolidation. Here are some definitions of the terms
you commonly see:
Consumer Credit Counseling Service, also known
as CCCS
A nonprofit nationwide organization. Specializing in debt management programs
and subsidized by major creditors. CCCS was the first organization offering
debt management services.
Credit Counseling and Debt Counseling
Refers to consultations regarding debt management, budgeting and personal
finances to learn money management skills.
Debt Management Program
The actual program of consolidating debts into one monthly payment, usually
with payment to the administrator of the program, and the administrator
paying the debt payments directly to the creditors.
Debt Consolidation Companies
Are independent companies, some nonprofit, that undertake the responsibility
of administering a debt management program similar to the Consumer Credit
Counseling Service.
Debt Consolidation Service
The blanket term used to describe the services offered by the Consumer
Credit Counseling Service as well as Debt Consolidation Companies.
Debt Management Agreement
The contract between you and the debt consolidation service you have chosen
to represent your interests in a debt management program.
Consumer Credit Counseling Terminology
Terms you will also see often on debt counseling web sites are "accreditation"
or "accredited." It means that agency adheres to strict guidelines
and must pass independent accreditation reviews on a regular basis. These
sites usually display a seal. "Certified counselors" will also
appear often. In this instance it means the credit counselors have passed
examinations to become certified in debt management and credit counseling.
Taking Action
If you have a hard time making the minimum payments, you need to take
action before your credit file is trashed, and you have creditors calling
daily.
We recommend debt consolidation through a reputable Consumer Credit Counseling
Service to get your finances under control. They can help you with managing
your money, as well as deal with your creditors for you.
This
highly recommended credit counseling service can save you thousands of dollars
and they deal with your creditors directly. They adhere to AICCCA standards and
offer online account management. Take the initiative, and make
the initial contact for online debt management.
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Introduction
To Debt Consolidation Programs
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Introduction to Consumer
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