National Debt Relief Shares How Credit Counseling Works

National Debt Relief recently shared in an article published July 19, 2016 some very useful insight on credit counseling. The article titled What You Need to Know About Credit Counseling and Debt Consolidation aims to help consumers who are trying to manage their debt payments understand how credit counseling and even debt consolidation works.

Dallas, TX (PRWEB) August 15, 2016

National Debt Relief recently shared in an article published July 19, 2016 some very useful insight on credit counseling. The article titled What You Need to Know About Credit Counseling and Debt Consolidation aims to help consumers who are trying to manage their debt payments understand how credit counseling and even debt consolidation works.

Debt is deeply embedded in the lives of consumers and it has already been a part of life. From a mortgage loan to get a house to a car loan to buy a car and even student loans to go to college – these debts has formed a way of life. But these should not define or even prohibit a way of life. This is why there are credit counseling options for consumers but it is important to have an understanding of how they work.

The article starts off by pointing out to consumers that not all credit counseling companies are the same. When choosing one, it is recommended that consumers look for either Financial Counseling Association of America (FCAA) or the National Foundation for Credit Counseling (NFCC) accredited companies. This is because this and other association require their member to adhere to strict standards aimed to protect the public.

The article also explains how credit counseling companies consolidate their debts which is essentially a debt management plan or DMP. The way they work is that once a consumer agrees with the service, the credit counseling company will reach out and talk to the consumers lenders about rates and waiving fees. They then process the payments where the consumer just makes one payment to them a month.

But the article also shares that consumers might not automatically need a debt management plan. It is the job of the credit counselor to look at the specific situation of the consumer and be able to propose options so they can manage their debts. To read the full article, click

For the original version on PRWeb visit:

Utah’s commerce boss loses round to ex-aide, but fight isn’t over as her old feud with A.G.’s office resurfaces

(Francisco Kjolseth | The Salt Lake Tribune)
Francine Giani, Director of the Division of Consumer Protection in Salt Lake addresses the media, March 30, 2004, regarding the embattled Consumer Credit Counseling Service of Utah which has been issued a temporary restraining order. The Utah consumer debt fund came under investigation when it failed to send out client payments, used by about 1400 troubled Utahn consumers.

Positive credit report highlights conservative budgeting

HALFMOON gt;gt; Three years of cost-cutting measures, a determined effort to eliminate a highway budget deficit and an upturn the economy, has brought the town good news from a highly regarded credit rating firm.

Moodys Investment Services recently removed the towns negative financial outlook and upgraded it to stable. As part of its report, Moodys also affirmed the towns Aa3 credit rating high quality and very low credit risk.

The positive report was good news for Supervisor Kevin Tollisen, his administration, and the town board. It confirmed all his efforts to cut spending wherever possible and to stop using fund balances to balance the towns annual budgets were worthwhile.

Were very pleased with Moodys change from a negative to a stable outlook, Tollisen said. Were taking an aggressive approach to making sure our budget is being closely reviewed. We want to make sure our expenditures are not exceeding our budget revenues.

Moodys noted the towns manageable debt, its stable tax base, improved operating performance and the general stability of its other credit factors in its report.

The fiscal 2013 and 2014 audited financials reflect a two-year trend of positive operating performance that has returned the available operating reserves to a positive position which provides greater operating flexibility, the report stated. The Aa3 rating reflects the towns sound financial position that has improved in recent years and is subject to economically sensitive revenues given the lack of a general town tax.

Because of that aggressive approach of reviewing each expenditure the town has been able to improve its fund balance from $28,000 to $1.2 million. Critical to that improvement was Tollisens determination to eliminate a highway budget deficit of more than $400,000 in two years rather than the three that was planned prior to his taking office in 2014.

Weve done it by conservative budgeting, Tollisen said. I meet with the department heads once a month and the first thing on the agenda is the budget. By staying with our budgeted items and having everyone spending only whats necessary, were on the path for financial improvement and Im very pleased that that will continue.

He noted that the town also is slowly moving toward reducing its dependence on sensitive revenues by considering a town-wide highway tax. Currently, the town gets the bulk of its operating revenue from its share of the countys mortgage and property taxes. Tollisen has held seven workshops in the past two months to discuss how a highway tax will help maintain the towns highway infrastructure.

He has a 20-year highway plan for road maintenance and road improvements but that plan needs a stable source of revenue. A highway tax would do that, but presenting that possibility to a citizenry that has been steadfast and proud for many years that its town had no taxes for the operation of town government is not easy. Continued…

  • 1
  • 2
  • See Full Story

Do debt management plans work?

If borrowers make all the payments and repay the principal completely, debt management plans have much less impact on their credit scores than other types of debt relief.

Francine Bostick of Manhattan, Kan., paid off more than $120,000 in credit card debt in 2012. She says she emerged with credit scores good enough to buy her first-ever new car.

“It was exciting and made me a little nervous when they did the credit check,” says Bostick, 66. “We got 0 percent interest for the life of the loan.”

Yet Bostick is also an example of what may be wrong with credit counseling. Some consumer advocates were appalled when the National Foundation for Credit Counseling named Bostick and her husband, Jim, as the agency’s 2012 “Clients of the Year” because of the couple’s age and the fact that he had Alzheimer’s disease. Bostick worked 12-hour days to earn the money to make debt payments while caring for her increasingly incapacitated husband, who died in May. Critics say the Bosticks should have been encouraged to file for bankruptcy so Francine could have spent more time with her dying husband and used any extra money to shore up her own retirement savings.

Bostick said her credit counselor had told her she could file for bankruptcy, but Bostick didn’t consult a lawyer about that option.

“I still feel we made the right decision for us,” Bostick said. “I believe if we had filed (for) bankruptcy I would probably be in the same boat as a few people I know who filed (for) bankruptcy and are buried in debt again.”

The lack of disclosure about bankruptcy’s potential benefits isn’t the only problem with debt management plans. Other issues include:

o They aren’t designed to tackle many other types of debt, such as mortgages, car loans, student loans and most medical bills.

o Borrowers should expect to live without much access to credit during the repayment period. Their credit card accounts are typically closed and they agree to not apply for new credit, whether it’s for another card, a new car or a mortgage refinance. A new account appearing on their credit reports may lead creditors to cancel the debt management agreement.

o There’s little leeway for missed payments, which can lead to the plan’s cancellation.

Some people find that they simply can’t afford the payments on debt management plans, while others drop out because of setbacks such as job loss or unexpected expenses.