Frequently Asked Questions

Here are some Frequently Asked Questions about our Debt Management Program and how we can help you...

How long does it take to pay off my debts?

Most of our clients are able to reduce their payments as well as reduce interest charges. Many creditor waive late and over-limit fees. If you continue to pay only the minimum amount due yourself, it would take 10 to 20 years to pay off most balances. But with our program, most clients are able to pay their debt in only 3 to 5 years.

How does your program effect my credit report?

Many creditors will re-age the account. The account is then considered current, a great advantage for people who are behind. Creditors may make a notation on your credit report such as "Credit Counseling Client"; most acknowledge this is a responsible way of dealing with overextended credit issues.

Is there a fee?

The State of Virginia recently allowed nonprofit Consumer Credit Counseling agencies to charge a maximum of $5 per month. This money is a monthly maintenance fee covering postage, checks, and other miscellaneous expenses. No one will be denied service based on the ability or willingness to pay the monthly fee.

What other benefits are available from the Debt Management Program?

Only one payment is made each month. These payments can either be made by cashier's check, money order, government allotment, or automatic debit from your checking account. CFC of Tidewater will distribute your payment as per the budget decided by you and your counselor. Additionally, enrollment in the Debt Management Program will put a stop to harassing phone calls and collection notices.

Does CFC of Tidewater actually loan me money?

No, we do not loan you any money, this is not a consolidation loan. CFC of Tidewater negotiates with your creditors to lower payments and interest rates and accepts one payment from you and then disburses money to all of your creditors. The result is much like a consolidation loan with a lower interest rate. Creditors are paid individually, but the cumulative interest rate is lower.

What is the difference of your program compared to Bankruptcy?

Often times, people file bankruptcy to escape bill collectors, not because they have too much debt. CCC of Tidewater is an alternative to filing bankruptcy. Most people do not want to file bankruptcy, but think it is the only answer. Please check out our bankruptcy facts page before any decisions are made concerning bankruptcy. Many people are able to avoid the bankruptcy mistake by enrolling in our program. I am not behind on my bills, but I am barely making it and my balances never seem to go down. Can I enter your program if I am not currently behind on my bills? Yes. If you are living paycheck to paycheck, the Debt Management Program may benefit you. If you have other questions or concerns about Consumer Financial Counseling of Tidewater or the Debt Management Program, either e-mail consumercredit@ccctidewater.com or call (757)625-2227 x112 or x115