No. of Recommendations: 1
From what I have learned, our credit reports currently say that we are working with CCCS (notations on each of the 2 accounts) but hold an R1 (highest) rating. My understanding is that once the accounts are paid in full, all mention of the debt management program will be taken off, and the "paid as agreed" statement will replace it. With an R1 rating, I see no reason why they would take that away.

But it's not all bad. The point of a debt management program is to get the debt under control and not incur any new debt. We did have to trade in our car and get a used minivan (third baby coming next week, not enough room for all the car seats in the old car), so the auto loan we got was 2.75% higher interest rate. But our debt strategy will have that loan paid off in 3 years, instead of the 5 we financed for, and will be the last debt paid off, so the 20% break in credit card interest rate is worth that small amount.

To sum it up, the notation will temporarily hurt your credit until all of the debts are paid. (My understanding of how it all works is that this is correct information, don't sue me if I'm wrong). After that, it should look pretty good if you get in the market for a loan.
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