Client Success Stories: Adam: Paid Off $25,000 of Credit Card Debt in 3 Years!
May 10th, 2012

After experiencing a substantial reduction in his salary, Adam* struggled to adjust to his new income.  Over time, he was able to find a second job and reduce his expenses, but by that point he had accumulated $25,000 of debt on his credit cards.  Unwilling to file for bankruptcy, he wondered how he would ever manage to pay off his debt.

Though he hated the idea of filing for bankruptcy, Adam was unaware of alternative options – until he heard about Consumer Credit Counseling Service on 102.3 Talk! Radio.  As he listened to the radio program, Adam learned about the Debt Management Plan (DMP), a program used by non-profits across the country to quickly eliminate credit card and medical debt.  Recognizing the DMP as his salvation from bankruptcy, he immediately scheduled an appointment. 

Adam first met with Tony Frazier, Certified Credit Counselor.  After hearing the details of Adam’s individual circumstance, Tony was able to provide a projection for how much Adam could expect to pay once accepted to the DMP.  Together, they also examined Adam’s budget to determine whether the monthly payment would be affordable and to consider whether any other expenses could be reduced.   

After only 3 years and 1 month, Adam paid off his cumulative balance of $25,024.54!  “Not only did CCCS help me pay off my debts quickly and avoid bankruptcy, they provided valuable emotional support.  They understood what I was going through, and they helped me through it.”

Congratulations, Adam!  We’re so glad to have been a part of your journey to become debt-free!

*Names have been altered to preserve anonymity.

If you are struggling with an overwhelming burden of debt, please don’t hesitate to contact CCCS. Call (423)490-5620, email CCCSreception@PartnershipFCA.com, or live chat with a certified counselor right now!

To learn more about Consumer Credit Counseling Service, click here.
To learn more about the Debt Management Plan (DMP), click here.

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Credit and Debt: Are You Part of the Majority That's Worried About Credit?
April 17th, 2012

NFCC POLL INDICATES AMERICANS EAGER TO IMPROVE CREDIT SCORE

Washington, DC – According to the March Financial Literacy Opinion Index hosted on the homepage of the National Foundation for Credit Counseling (NFCC) website, www.NFCC.org, a strong majority of consumers, 56 percent, selected “improving my credit score” as the personal finance area in which they needed the most help. 

“What consumers continually fail to understand is that the credit score is based on information contained in the credit report,” said Gail Cunningham, spokesperson for the NFCC.  “The process of improving the credit score starts with obtaining the credit report, fully understanding the contents, and acting upon that information.  Nonetheless, only five percent of respondents indicated they needed help understanding their credit report.”

Supporting the findings of the monthly survey is the data from the NFCC’s recent annual Financial Literacy Survey which found that the majority of adults have neither ordered their credit report or score in the past 12 months.  “In spite of it being free and critical to a person’s financial well-being, Americans remain resistant to ordering their report,” continued Cunningham.

Looking at other areas of the poll, twenty-three percent admitted they need help “controlling their spending,” but only 11 percent of those weighing in selected “knowing how to save money” as their main concern.  Uncontrolled spending coupled with inadequate savings is a recipe for financial disaster, while striking a balance between the two leads to a healthy financial future.

Only five percent indicated they needed assistance planning for retirement.  This result could suggest that consumers feel adequately prepared to make sound decisions related to retirement. However, retirement planning often takes a back seat to other seemingly more pressing financial concerns, putting many into a position of having to play catch-up as they approach retirement age.

Below are tips for consumers related to each personal finance need listed in the poll:

• Improving a credit score - Understand that there is not just one score. In addition to the widely-known scores, lenders may have scoring models specific to their needs. Fair Isaac, inventor of the popular credit scoring model known as FICO, offers a score on their website, www.MyFICO.com.  Scores can also be obtained from each of the three major credit reporting bureaus, www.Experian.com, www.Equifax.com, and www.TransUnion.com.  Each score will likely come with features such as an explanation of the score, how your score compares to others, and concrete tips on how to improve the score.
  
  
• Taking control of spending – Symptoms of a serious spending problem are hiding purchases, going on a spending spree only to return what was bought, or buying items that are kept, but never worn or used.  Once people become aware of their over-spending and its detrimental impact on their life, the next step is to determine the root cause of the habit. Consider enlisting a trusted friend or family member to act as an accountability partner.  Changing behavior is never easy, but having someone keeping you on track could provide the discipline necessary to embrace the new lifestyle. 
  
  
• Knowing how to save money – A person cannot know where he or she is going until they know where they are.  Plug the leaks by having everyone in the family who spends money track their spending for 30 days.  At the end of that time, hold a family council and review the findings.  The goal is to identify areas that can be reasonably trimmed back.  Try to carve $10 out of each spending category.  With a little effort, this could net an extra $100 per month, enough to begin a rainy day savings account.  Try to maintain one month’s salary in the emergency fund, as this amount should sustain you through most unplanned events.
   
  
• Planning for retirement – The Human Resource department at work is a good place to learn more about your company’s retirement plan and how to maximize it to your advantage.  Money’s best friend is time, so the sooner contributions begin, the longer you’ll have to grow your money.  The Social Security Administration offers a helpful Retirement Estimator at www.ssa.gov that projects the benefits a person can expect upon retirement.
  
  
• Understanding a credit report – Consumers can obtain their credit report free of charge once every 12 months from www.annualcreditreport.com, or from one of the three credit reporting agencies, although there may be a small fee associated with purchasing from a bureau.  Consumers should review their credit report at least once each year, checking it for accuracy and for signs of identity theft.  Since the credit report is the basis for many lending decisions, it is critical that consumers not only obtain their report, but understand the contents.  NFCC Member Agency counselors are trained to help consumers understand their credit report.

If you need help polishing your personal finance skills, reach out to Consumer Credit Counseling Service, an NFCC Member Agency.  To schedule an appointment with a Certified Credit Counselor, simply dial (423) 490-5620, or email CCCSreception@partnershipfca.com.  

The actual survey question and responses were as follows:

Regarding personal finance, I could use the most help in the area of

A.     Knowing how to save money = 11%
B.     Improving my credit score = 56%
C.     Taking control of my spending = 23%
D.     Planning for retirement = 5%
E.      Understanding my credit report = 5%

Note: The NFCC’s March Financial Literacy Opinion Index was conducted via the homepage of the NFCC Web site (www.DebtAdvice.org) from March 1 - 31, 2012 and was answered by 1,164 individuals. 

The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services. NFCC Members annually help more than three million consumers through close to 750 community-based offices nationwide.

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Client Success Stories: Ashley -- Reduced Her Mortgage Payment by $170 Each Month!
April 3rd, 2012

Ashley* was working as a nurse when she lost her job.  Without a steady paycheck, she struggled to make ends meet and began to fall behind on her mortgage payments.  Fearing foreclosure, Ashley reached out to a “foreclosure assistance” company that promised to reduce the interest rate on her mortgage as well as her monthly payments.  After paying the initial fees, she found that they could not fulfill their promises and could do nothing to assist her.  

Unsure of how to proceed, Ashley sought help through
her mortgage lender, who directed her to call the HOPE hotline, a free service linking struggling homeowners to free housing counseling services.  Through the hotline, Ashley found Consumer Credit Counseling Service and scheduled an appointment to meet with Tina Williams, HUD-certified housing counselor.  

After discussing her personal situation, Ashley and Tina decided to pursue a loan modification, which, if approved, would allow her to make smaller monthly mortgage payments. With intimate knowledge of the foreclosure and loan modification processes, Tina acted as Ashley’s advocate, fighting for her to remain in her home.  Though forced to wait months to receive approval for a loan modification, Tina supported Ashley every step of the way, assisting with all lender communications as well as extensive paperwork.

Ashley shared that her experience working with Tina was “truly, truly wonderful.  I felt confident that she knew what she was talking about and I felt confident that she cared about what was going on.  She felt like I wasn’t being treated fairly and she did something about it.”

During the months that she worked with Tina, Ashley struggled to pay as much of her mortgage as possible by using the small unemployment checks she received as well as making withdrawals from her 401(k).  She found work through a temporary employment agency and was finally offered a permanent position. Though her income was once again consistent and reliable, Ashley was still two months behind on her mortgage.  She knew she would lose her home to foreclosure if she couldn’t get approved for the loan modification.

After a long struggle with her lender, Ashley received approval for her loan modification, permanently reducing her monthly payment and bringing her account current.  Her former mortgage payment of $946.69 shrunk to $776.54, a savings of $170 every month.  With her new job, smaller payment, and second chance, Ashley knew that she’d be able to keep her home forever.

Speaking of the case, Tina recalled "Ashley was victorious because she didn't give up.  She worked temp jobs, reduced all expenses to the minimum, and stayed focused.  She also took great strength from the Lord when she became discouraged."

If you are struggling with an overwhelming burden of debt, please don’t hesitate to contact CCCS. Call (423)490-5620, email CCCSreception@PartnershipFCA.com, or live chat with a certified counselor right now!

To learn more about Consumer Credit Counseling Service, click here.
To learn more about the Foreclosure Prevention Counseling, click here.

*Names have been altered to preserve anonymity.

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Client Success Stories: Richard and Judy -- Free From $50,000 of Credit Card Debt!
March 5th, 2012

After graduating from nursing school, Judy* began applying for credit cards.  Anticipating an increase in income, she felt confident that she could afford the purchases she was charging.  Before long, however, Judy became accustomed to being able to buy the things she wanted on credit, and she began to treat her credit card as a supplement to her nursing salary. 

The debt slowly grew out of control and Judy began to fall behind on her payments.  Debt collectors began to call her at home.  She tried borrowing from one credit card to pay another, but she couldn’t seem to get back on track.  Judy knew that her husband, Richard, heard the phone calls and observed the notices she was receiving in the mail, but they’d never discussed how much Judy had been lent or how much she owed.  She knew she had to confront the situation and own up to Richard about the debt she had incurred.

After discussing the situation openly and honestly, Judy and Richard searched for ways to pay off the rising burden of debt and, to their relief, discovered the Debt Management Plan (DMP) offered by Consumer Credit Counseling Service.   They immediately scheduled a free, no obligation appointment with Ryan Hicks, Certified Credit Counselor.   After sharing their own unique situation, Richard and Judy listened as Ryan explained how CCCS could reduce their interest rates and minimum monthly payments in order for their debts to be paid off quickly and efficiently. 

Recalling their first meeting, Ryan noted, “By only making her minimum payments, it would have taken Judy over 30 years to pay off her bills.  By enrolling in the DMP, we were able to work with her creditors to shrink her minimum payments and lower her interest rates so that she would complete all credit card payments within 5 years.  As long as Richard and Judy could handle their new budget, we would handle the debt side for them.”    

Though the repayment process initially felt slow and burdensome, after the first year Judy could see the progress she was making and the light at the end of the tunnel.  On the DMP, she was able to lower her monthly payments from $1,790 to $1,180, saving $610 every month.  Judy made her last payment this past February, paying off a total of $59,546 in only 4 years and 3 months! 

Judy admitted that, though she earned a healthy salary, she had allowed her lifestyle to exceed her income.  She explained that working with CCCS enabled her to adjust her spending habits, remarking “I’ve learned to live on what I can pay cash for.”  After making her final payment, she shared how grateful she was for the DMP and declared that she recommends the plan to anyone with debt.

Congratulations, Judy!  We’re so glad we were able to assist you in becoming debt free! 

*Names have been altered to preserve anonymity.

If you are struggling with an overwhelming burden of debt, please don’t hesitate to contact CCCS. Call (423)490-5620, email CCCSreception@PartnershipFCA.com, or live chat with a certified counselor right now!

To learn more about Consumer Credit Counseling Service, click here.
To learn more about the Debt Management Plan (DMP), click here.

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Identity Theft: Simple Steps to Financial Protection
March 4th, 2012

Consumer Protection Week (March 4 - 10, 2012):
An Ideal Time to Add a Layer of Security to Personal Finances

Washington, DC – Personal finances have become increasingly complex, yet hardly a day goes by that doesn’t involve a financial transaction.  Realizing that there are those eager to separate consumers from their money and destroy their financial reputation makes financial protection take on a new level of importance.   

In recognition of Consumer Protection Week, the National Foundation for Credit Counseling (NFCC) challenges consumers to add a layer of security to their financial future by putting the following do-it-yourself protection tips in place:

• Use caution when engaging with social media sites, as even the smallest bit of data or casual comment can provide thieves with enough information to wreak havoc, both personally and financially. 
• Beware of phishing.  Learn what to look for to verify that an email is authentic, as crooks can make such communications appear very realistic through logos and web addresses that mirror the actual.
• Suspect that an email is a scam if it asks for personal information or money, even though it appears to be from someone you know or do business with.
• When buying online, make the payment with a credit card instead of a debit card, as credit cards provide more security against fraud.
• Become familiar with consumer rights by reviewing the Fair Credit Protection Act, the Fair Credit Reporting Act and the Fair Credit Billing Act, each available at www.ftc.gov. 
• Guard against identity theft by obtaining your credit report from www.AnnualCreditReport.com. 
• Open and examine credit card statements for unauthorized transactions, or create access to financial accounts online in order to review statements more frequently.
• Request direct deposit for all checks.  If not available, consider obtaining a post office box or locked mailbox.

“The above steps will move consumers into a much safer place financially,” said Gail Cunningham, spokesperson for the NFCC.   “They are easy to implement, and will provide another level of much-needed financial protection.

For help making sure that all of your financial bases are covered, consider reaching out to Consumer Credit Counseling Service, an NFCC Member Agency.  To schedule an appointment with a Certified Credit Counselor, simply dial (423) 490-5620, or email CCCSreception@partnershipfca.com. 

The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services. NFCC Members annually help more than three million consumers through close to 800 community-based offices nationwide.

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