Anyone have any experience with NFCC credit counseling?

This organization was formerly known as Consumer Credit Counseling Service (CCCS). They are legit, non-profit companies and are highly recommended by a number of organizations and consumer interest groups.

This is a non profit organization that was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debt...and who may by considering filing for bankruptcy. They can offer reduced payments and interest (but NOT settlements for less).

As a general rule, they can reduce your total monthly payment down to 2% of your total debt...so with 10K in credit card debt...your total payment would roughly be $200. They can also reduce the interest to around 10%

- Enrolling in this program involves closing all your credit cards so that you can't use credit again. Your credit report will get updated to "enrolled in debt management." This does not specifically damage your credit...but it will make it hard to get any sort of new credit...like being approved for a car loan.

- Some people on this board mistakenly state that this is a government agency...it is not.

- NFCC is a good program if you are just at the point of getting over your head with debt. If your cards are near/at or past the point of default, then you are far better off trying to negotiate settlements directly with your creditors...assuming you have the money up front to settle in the 25 - 50% range.

- As bad as bankruptcy is...there are times when filing for Chapter 7 is in a person's best interest, esp. if they still are struggling even when enrolled in NFCC. For any advice that you may receive from NFCC about whether you should file for bankruptcy, keep in mind that this organization is sponsored by the credit card industry.