How Debt Management Works
Get started online or call us to speak with a financial advocate. Appointments are available by phone or in person at one of our eight locations.
Come prepared with information about your income, any loans or debts, and your monthly expenses. We’ll sort through it with you and create a realistic spending plan to get you back on track.
Start paying down debt. Establish a solid repayment history, develop good financial habits and improve your credit. Once you are debt free, put that money into savings.
Credit Counseling Resources
Budgeting is a critical life skill. Our e-Learning courses explore personal finance topics and suggest tactics to help you develop good money habits. You will also find links to government resources, information and videos.
Credit Counseling FAQs
Do I have too much debt?
If you never have enough money left at the end of the month or you buy things on credit without paying off your full balance each month, these are signs you may be in financial trouble. Most of us can tell when we’re struggling financially; the harder part is knowing how to deal with that situation. If you suspect you’ve taken on too much debt, take action now. The longer you wait, the harder it will be to get back on track. You may also end up owing a lot more to creditors.
Here are some things you can do yourself: If you don’t already live on a budget, set one up. Also look for ways to spend less. For example, downsize your phone package or begin taking your lunch instead of eating out at work. If you’ve already begun to miss or make late payments, call your creditors and explain your situation. They may be willing to work with you.
If you need outside help, CCCSMD provides free, confidential budget and financial advice. Click here or call 1-800-571-2227 to learn how or request a financial counseling appointment. The sooner you seek help, the better chance you’ll have to take control of your finances.
How does debt affect my credit score?
These debt-related practices are likely to damage your credit score:
- Missing or making late payments on bills because you’re financially overextended. Why does this hurt your credit score? Because 35% of your score is based on your bill payment history.
- Charging your credit cards at or near their credit limit. Why does this hurt your credit score? Because 30% of your score is determined by your current credit status.
- Not paying your credit card balances in full each month. Why does this hurt your credit score? Because 15% of your score is determined by your credit history.
Are you considering enrolling in CCCMD’s Debt Management Program (DMP)? How this affects your credit score will depend on the credit reporting policies of the individual creditors in your program. The financial skills you learn during the program will help you develop habits to improve your credit score.
How can a credit counselor help me?
Your counselor will help you assess where you stand financially and work with you to develop a realistic monthly spending plan based on your monthly net income, living expenses, and debts. You’ll also learn about options to help you resolve your financial situation and receive resources to help you deal with related issues. Financial counseling is available by phone or face-to-face at CCCSMD’s offices in Maryland and Delaware. The personal information you provide is kept confidential.
What credentials do credit counselors have?
CCCSMD is an accredited, non-profit financial advocate that has been a trusted member of the community since 1966. CCCSMD does not lend money and is not a collection agency. Annually, we help more than 30,000 people gain the knowledge and skills they need to improve their finances. Our counselors are all professionally trained and certified. When clients come to us, they do not judge. Instead, they listen and provide personalized advice to meet each client’s needs.
What do I need to do to repay my debt and be financially stable?
Throughout your DMP, CCCSMD maintains regular contact to ensure you are able to reach your goals. If you have questions, our Client Services department offers ongoing advice and support. We also provide a host of free educational resources, including a quarterly client newsletter, monthly financial e-bulletins, and online personal finance and housing courses and podcasts.