Certified Consumer Debt Specialist – Definition

Cite this article as:"Certified Consumer Debt Specialist – Definition," in The Business Professor, updated August 1, 2019, last accessed October 20, 2020, https://thebusinessprofessor.com/lesson/certified-consumer-debt-specialist-definition/.


Certified Consumer Debt Specialist Definition

The Certified Consumer Debt Specialist Institute offers professional training to successful applicants on effective debt settlement and negotiations. A Certified Consumer Debt Specialist (CCDS) is a professional title awarded to professionals in the debt settlement discipline. Individuals with this professional designation can apply for jobs using the certificate, it gives them a better advantage than people with nmo professional certification. The Center for Financial Certifications awards CCDS to qualified persons.

A Little More on What is a Certified Consumer Debt Specialists (CCDS)

Before the Center for Financial Certifications awards can award Certified Consumer Debt Specialist (CCDS) to professionals, they must have undergone training in finance management and general debt settlement. During the training, specialists also gain knowledge in financial budgeting, debt avoidance, evaluation of debt, elimination of debt, and other important topics. Also, it is important that professionals gain exquisite knowledge on how to negotiate debt on behalf of their clients.

Center for Financial Certifications

The Center for Financial Certifications is also called Fincert. It provides professional training on debt settlement and effective negotiations on behalf of clients or consumers. The Center for Financial Certifications was established in 2006 and since then, it has been pursuing its mission which is to provide quality education and training for successful applicants. Fincert aims to help professionals improve their personal finance management and also provide quality service for consumers with regard to debt settlement and consumer financial products.

Consumer Debt Specialists and Debt Settlement

One of the major responsibilities of Certified Consumer Debt Specialist designees is debt settlement. Debt settlement entails negotiations with a creditor for the debt balance to be reduced. Unsecured debts such as credit card debt and medical bills are the type of debts that can be settled through negotiations. The reduced balance will be regarded as a full payment by the creditor. Usually, the CCDS designee enters an agreement with a creditor on behalf of a client that a lump sum payment (a reduced amount) will be made in exchange for the overall debts. Debt settlement is only successful if the creditor agrees to let go of some part of the best owed.

In most cases, negotiations occur between debt settlement specialist and a collection agency, a collection agency is not the same as the creditor. Once the collection agency agrees to reduce the overall debt of a consumer in exchange for a lump sum payment, the debt settlement is successful. Unlike the original creditor, reaching a debt settlement with a collection agency is easier. Upon the success of the debt settlement, collection can be removed from a consumer’s credit report.

Reference for “Certified Consumer Debt Specialist – CCDS”

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