However, “nothing to do†suggests to me that the advice is that even bankruptcy beyond credit counseling would be desirable. I totally disagree.
I don’t know your specific situation, but you mention bankruptcy as if that was your only other choice. You did just the right thing. And I’m proud of you for choosing credit counseling.
There is no guarantee that your debt management choices will not affect your creditworthiness in the future.
Says Experian, one of the largest credit bureaus, “Accounts that you pay through a credit advisor, including CCCS, are typically reported by lenders as being paid through a debt management program. Most credit risk scoring systems no longer take this status into account. This means that your participation in an advisory program will not be rated negatively by most lenders. “
Atlanta-based CCCS says, “Even if you participate in a CCCS debt management program, CCCS does not report your participation in our debt management program to credit reporting agencies. Some creditors may report that your account has been accepted into a debt management program. Creditors can report their account up to date when they receive our offer, while some wait to receive three consecutive payments through CCCS. They know that instead of running away from them in bankruptcy, you are settling your debts, and after seeing a consistent payment history through CCCS, you may see you as a better credit risk than the typical consumer.
