Consumer Credit Counseling ("CCC") is an industry that sprung up in the early 1980's when banking laws changed and it became far easier for the average consumer to accumulate credit card debt. Larger and larger balances were amassed, and soon many individuals found themselves unable to meet minimum monthly payments.

At that time, with no other option, many consumers were forced to file for personal bankruptcy. Seeing their loans defaulted, the banks began funding organizations to help these consumers avoid filing for bankruptcy. The organizations, called consumer credit counseling ("CCC") companies, served essentially as outside collection agencies for the banks.

Once a consumer is enrolled in the program, the CCC contacts all of the individuals' debtors and notifies them of the individual's participation in the program. The consumer then begins paying one lump sum to the credit counseling company, rather than many individual payments to the credit card companies. The CCC is compensated with a percentage (%) of the amount paid per month, typically 15%.

The main issue with CCC's is that they are owned and operated in affiliation with the credit card companies, not the individual consumer. As such, their ultimate goal is to maximize the financial return to the credit card companies. In most cases, the new monthly payment under the plan is higher than the original minimum monthly payment. If the consumer was having trouble meeting minimum monthly payments before, how is that person to handle higher ones?