The person who came to me for help: $ 40K income, healthy, in debt US$ 140K (yes, one hundred forty thousand dollars) ($ 60K student loans in forbearance, $ 7K auto loan, the rest unsecured debt: $ 50K is maxed out credit card debt, mostly at default 30+% rates and the rest is loans from friends. About $ 1K in tax liability.). Some debts are freshly (30 – 60 days) delinquent, but none has gone to collections yet. No previous BK, charge-offs, collections or judgments. All 3 Credit reports have no serious errors, FICO scores unknown. Person is motivated, has already shown me recent credit reports and bills, cut up credit cards, developed detailed list of assets (car + $ 3K in illiquid assets + $ 1K cash) and liabilities, and is writing a monthly budget.
What do you advise?
Is the Consumer Credit Counseling Service Debt Management Program the best solution? What are your successes or failures with the CCCS DMP? Costs and benefits? Please answer the questions I’ve asked. Thanks.
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