What Is The Nfcc
The NFCC is the largest and longest-serving nonprofit financial counseling organization in the United States. Founded in 1951, the NFCC is dedicated to helping Americans gain control of their finances and achieve financial fitness.
NFCC programs and services are available through a national network of nonprofit member agencies like American Consumer Credit Counseling . NFCC membership is considered the Gold Standard in the financial counseling sector its the brand that consumer advocates point to when recommending financial counseling.
Military And Veteran Debt Relief
InCharge offers nonprofit counseling to military service members, veterans, and their families free of charge. We recognize that service members from all branches of the military face unique financial challenges related to frequent relocations, deployment, disability, and PTSD. Were here to help.
More on military debt relief:
Talk To A Qualified Credit Counselor
Before taking out a home equity loan, be careful and consider the pros and cons. You should explore alternatives with a credit counselor that do not put your home at risk of a forced sale. If you are unable to make payments on time, you could end up losing your home.
Contact a qualified credit counselor through the National Foundation for Credit Counseling .
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Who Should Consider Talking To A Credit Counselor
Credit counseling is appropriate for individuals who are trying to pay off their debt but who dont feel they are making any headway on their own. They may also be people who have high-interest rates on their credit cards, who may have taken out a payday loan, and/or who may be late on any such debts. Credit counselors may not be able to help you with the renegotiation of a mortgage, car loan, or other secured debt. For help with your mortgage, see a HUD-certified counselor.
Ontario Credit Counselling Services
When you are looking for debt solutions in Ontario, credit counselling presents one of the options available to you.
A credit counsellor will help you to look at your finances and explore debt solutions and alternatives to bankruptcy.
If you are searching for credit counselling in Ontario, you can discover non-profit organisations that offer you debt relief services.
Need Help Reviewing Your Financial Situation?Contact a Licensed Trustee for a Free Debt Relief Evaluation
Speaking with a credit counsellor can immediately make your financial situation better.
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Types Of Home Equity Loans
There are two types of home equity loans:
- Lump sum – This is a one-time, closed-end loan that usually has a fixed interest rate.
- Revolving line of credit – You can withdraw the funds at any time for more flexibility. These usually have adjustable interest rates.
For more information, refer to What You Should Know About Home Equity Lines of Credit, a guide by the Federal Reserve Board.
Housing And Education Counseling
Credit counselors can provide housing counseling such as pre-purchase counseling, foreclosure prevention counseling, and homebuyer education. Many lenders and government assistance programs require a certificate of completion from a homebuyer education course as a condition of the mortgage. These courses teach consumers budgeting, finding a mortgage, paying taxes, home inspections, and other necessary lessons in the home-buying experience. The classes are offered by nonprofit organizations approved by the U.S. Department of Housing and Urban Development .
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What Do These Organizations Mean For Consumers
The good news about working with a credit counseling agency that has membership in either association is that they both have strict standards and best practices that members have to adhere to, said Pollack.
At a time when many lower-income consumers may be facing financial hardshipsparticularly as COVID-era forbearance programs begin to sunsetits important to seek help in the right places, said Ed Mierzwinski, senior director of federal consumer programs for U.S. PIRG, a public advocacy group. People are going to owe a lot of money. So is it worthwhile to check to see if a company youre thinking of having help you is a member of one of these associations? I think it is, he said in a phone interview with The Balance.
Mierzwinski said his hope is that both the NFCC and FCAA maintain strict membership standards to give consumers some peace of mind. So as long as a agency is a member of either the NFCC or the FCAA, consumers should be able to feel confident that they are working with a service that is accredited, certified, and kept accountable to maintain its memberships.
What Is The National Foundation For Credit Counseling
The National Foundation for Credit Counseling is a national network of non-profit credit counseling organizations. One of the primary services provided by NFCC member agencies is counseling people who have taken on too much debt, with the goal of keeping them from declaring bankruptcy.
To achieve this objective, NFCC members often recommend that their clients participate in a debt management plan , in which the client makes a single monthly payment to the NFCC member, who in turn uses those funds to repay the clients debts.
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When Is Credit Counseling A Good Idea
Some typical examples of situations when credit counseling would help include:
- A job loss or reduction in work hours causes financial problems.
- Your work is steady, but youre still living paycheck-to-paycheck because you cant create a budget or dont have the discipline to live with one.
- You use credit cards to pay everyday expenses like rent, utilities, food, and gas because you dont have enough cash in your wallet or money in your bank account to pay those expenses immediately.
- Overspending on things like dining out, entertainment, and clothing means there is never enough money left over to put in a savings account or emergency fund at the end of the month.
- Credit counseling is a reliable alternative if youve been rejected for a debt consolidation loan for unsecured debt.
Situations like this are common and correctable. Credit counselors have experience dealing with the issues that weigh consumers down and can offer a list of suggestions and solutions that will change the direction of your financial life for the better.
Benefits Of A Debt Management Plan
Its time to get your bills back on track
When you work with an NFCC agency on a debt management program, you may benefit from reduced or waived finance charges or fees, fewer collection calls, and your accounts will be credited with 100 percent of the amount you send in. When you have completed your payments, the fact that you did repay your debt in full and according to plan, may help you re-establish credit.
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History Of Consumer Credit Counseling Services
The National Foundation for Consumer Credit was founded in 1951 when credit cards were still a new financial product. The NFCC was founded to promote awareness and education of credit and financial literacy.
At the time, credit counseling agencies were largely independent, though most maintained membership to the NFCC. This gave them access to counselor certification, educational materials, and a point of unified negotiation with creditors.
How To Choose The Best Credit Counseling Agency
The Federal Trade Commission recommends contacting nonprofit credit counseling companies, like InCharge Debt Solutions, for online credit counseling, over-the-phone, or in-person counseling.
Most nonprofit agencies offer credit counseling for free however, the FTC website warns that nonprofit status does not guarantee the services are free and suggests careful research before choosing a to avoid .
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What Is A Debt Management Plan And How Does It Help
First things first, a debt management plan is NOT a loan. However, it is a tool offered by nonprofit credit counseling agencies to get you back on the road to a financially stable, debt-free future. A dedicated NFCC certified credit counselor can also help you determine if entering into a debt management plan is the best option for you, and if not, lay out all your available options
Choosing A Credit Counseling Organization
Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in consumer credit, money and debt management, and budgeting. They discuss your entire financial situation with you, and help you develop a personalized plan to deal with your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.A reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If a firm doesn’t do that, consider it a red flag and go elsewhere for help.Once you’ve got a list of counseling agencies you might do business with, check each one out with your state Attorney General and local consumer protection agency. They can tell you if consumers have filed complaints about any one of them. The United States Trustee Program also keeps a list of credit counseling agencies approved to provide pre-bankruptcy counseling. After you’ve done your background investigation, you will want to interview the final “candidates.”
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Approved Agencies By State:
For a list of approved credit counseling agencies by state and Judicial district, select a state, U.S. territory or commonwealth from the list on the left and then select a district.
Don’t know your judicial district? Click here.
Addresses listed for internet and telephone credit counseling agencies may be outside the requested state or judicial district. In such cases, the credit counseling agency is physically located in another state or judicial district, but is approved to provide credit counseling in the requested state or judicial district. In some states and judicial districts, credit counseling may be available only by internet and telephone, and not in person.
The Positive Impact Of Debt Management Plans
Independent research from The Ohio State University has demonstrated the positive financial impact of financial counseling that accompanies a debt management plan administered by NFCC Member agencies. Most of these plans allow participants to repay all their unsecured debt within a period of only three to five years, thanks to the cooperation of creditors who can reduce interest rates and eliminate fees on the enrolled accounts.
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The National Foundation For Credit Counseling
American satirist Ambrose Bierce once defined a creditor as follows:
, n. One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions.
Do those words hit too close to home for you? Are you struggling to pay the monthly minimums on your credit cards? Do you dread the constant collection calls and harassment because youre having trouble paying your debts?
Then youve got to learn about the National Foundation for Credit Counseling.
Founded in 1951, the NFCC is the largest non-profit financial counseling body in the United States. Its goal is twofold: To educate consumers about financially responsible behavior and to help them climb out of debt when all hope seems lost.
The NFCCs member agencies served 1 million clients in 2017, according to the organizations website. And with the low-cost credit counseling offered by its members, the non-profit has been a partner with clients every step of the way as they paid back $1.1 billion in debt to creditors that year alone.
You could be one of those debt-free individuals this year! But first, heres some preliminary info about the NFCC that you need to know.
Debt Management Plans Vs Debt Settlement
Its important to know that these relief options are not the same. As a simple overview, debt management is carried out by nonprofit counseling agencies that help you lower your interest rates and monthly payments without affecting your credit score. Debt settlement can be a risky option that involves paying a for-profit company to negotiate on your behalf, but can affect your credit score while waiting for the company to negotiate a lower payment.
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Providing Free Consumer Credit & Debt Counselling Services For 26 Years
With 98% of clients surveyed reporting they would recommend our services to others, offices located in communities across Canada, the Better Business Bureaus highest rating, and over 80 awards, the Credit Counselling Society is one of Canadas leading providers. If you need help with your debts or just want to learn how to manage your money better, call us now at .
Theres a Way Out of Debt with Help
I had just come to the point where I had given up hope that theres no way I could ever repay my debt. A friend of mine suggested I reach out, and I thought Id get some condescending person on the phone lecture me about money, but my counsellor was the most compassionate, caring person who became sort of my own personal cheerleader.
Charis
Why People Choose Us
certified counselors
We have Certified Consumer Credit Counselors who work with you in developing a personalized Financial Action Plan that results in positive and lasting solutions and helps you reach your goals. We have a variety of programs to offer ranging from debt management, financial counseling, housing counseling and bankruptcy.
qualified educators
We have financial education classes, pre-purchase home buying classes and more taught by our well-trained educators. Our educators are certified through the National Foundation for Credit Counseling.
proven track record
We have been serving individuals and families for over 47 years.
We have provided counseling for over 45,930 families and provided education classes for over 87,933 individuals.
We have returned $60,918,318 back to the community on behalf of our Debt Management Clients.
Of all of our referrals 30% come from current and past clients.
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What Is The Financial Counseling Association Of America
The Financial Counseling Association of America is the second major nonprofit membership organization in the industry. Established in 1993, the FCAA doesnt have the history the NFCC does, but it provides an important service for member agencies and, in an indirect way, for consumers.
For a credit counseling agency to become an FCAA member they need to adhere to our standards and best practices need to show proof of accreditation by an independent third party and counselor certification and need to provide documentation that they are licensed/registered in the states they offer services, said Lori Pollack, the executive director of FCAA in a phone interview with The Balance. What this means for consumers is that they are working with legitimate, licensed companies.
The FCAA says it checks members licensing status in each state on an annual basis. Not every state requires licensing, but we know which states do, and want to make sure we have members that are compliant, said Pollack.
While the FCAA does not interact directly with consumers, it does field occasional consumer calls about credit questions. It refers such callers to member agencies that are licensed in the consumers states.
Questions To Ask A Credit Counselor
- What Services do you provide? The ideal agency will offer various services, including budget counseling, financial planning, and debt management. Beware of agencies that try to lock you into a plan without reviewing your finances and accounting for your long-term goals.
- What educational materials do you provide? Most agencies will offer an abundance of free information and educational materials on managing credit and paying off debt. If your agency does not, its a red flag, and you should keep searching.
- Are your counselors accredited or certified by a third-party organization? Ask about the qualification process for becoming a credit counselor. Aim for an agency that uses a third party to train its counselors.
- What are your fees? Find out if there are initial, set-up, or monthly fees for participating in their programs.
- What if I cant afford your program? Ask about reduced or waived fees. Many nonprofit agencies will work with consumers for free or at a discount.
- How do you keep my information confidential? This can ease anxiety if youre worried about keeping your personal information secure.
- How are your employees paid? If employees are paid every time you pay for additional services, consider looking elsewhere.
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How Credit Counseling Can Help You Reach Your Financial Goals
Credit counseling isnt only about offering debt-relief solutions. Certified counselors are trained to ask consumers to look past the short-term financial problems and set long-term goals that will help them avoid future problems.
Here are goals you can work toward once you have your debt under control
- Establishing an emergency fund
- Planning a vacation
These are achievable goals if you have the right plan. Good credit counseling will help you shape that plan.
Find The Best Financial Counselor For You
Fill out the form below to schedule a financial review with a certified financial counselor from our trusted network of agencies. We will connect you with the best suited representative according to your needs and location.
If you prefer to connect with a counselor directly from your phone, please call and we will be able to assist you.
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More Info About The Credit Counselling Society & Our Approach
Weve given non-profit consumer credit counselling since 1996. 95% of people who contact us are typically helped for free. The only time someone pays for our services is if they decide to go onto our Debt Management Program. This consolidates all of someones credit card and other unsecured debt payments into one affordable monthly payment that has significantly reduced or 0 interest. This program protects peoples privacy, allows them to restore their credit, eliminates their debt, and gets their finances back on track as quickly as possible. Its just one of many tools we have to help people.
If youd like one of our professionally trained counsellors to take a look at your situation and help you figure out what all your options are to get back on track, give us a call today at . All youve got to lose is your debt.
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