Posts Tagged ‘Counseling’
July 29, 2014 | 
Author Nonprofit Debt Management Credit Counseling Providing Low Cost Student Loan Help
Lighthouse Point, FL (PRWEB) July 24, 2014
Debt Management Credit Counseling Corp. http://www.dmcconline.org, a nonprofit credit counseling organization (DMCC), announced today that it is providing free and low cost services to help federal student loan borrowers identify and implement affordable repayment options. The U.S. Department of Education offers various repayment options to borrowers who are struggling to repay their student loans. The options available, and the corresponding repayment terms, depend on many economic factors. DMCC provides borrowers free counseling and education to help identify the options that may be available to them. Low cost services may be requested to help borrowers implement their best option.
DMCC’s online calculator, which estimates the monthly payments under various federal repayment options, is the first step for borrowers seeking assistance. Using the calculator, borrowers can easily identify the option that may be best fit their budget. Taking a few minutes to fix what can become a 25 year problem is especially important to those borrowers whose student loans are in default. DMCC also provides links to information about each option’s requirements, costs and consequences. “One of the biggest obstacles that borrowers face is knowing where to start”, said Phil Heinemann, DMCC Executive Director. “Loan servicers do not always volunteer information about all the options available and more importantly, which one is best for you. The federal student loan websites and the options presented can be overwhelming. Our goal is to educate borrowers on their repayment options and help them implement the one that is in their best interest.”
DMCC cautions borrowers who are looking for help with their student loans to avoid debt relief companies charging high fees for such services. The repayment plans available for federal student loans are available at no charge through the U.S. Department of Education. However, the complexity surrounding the process, and consumer reluctance to speak with lenders, causes many borrowers to seek help from aggressively marketed debt relief companies that often charge excessive fees for their services.
DMCC provides its student loan services along with free personal budget counseling and general financial literacy education. Debt management plans to assist consumers with the repayment of credit card accounts are also available. Lower credit card payments obtainable through debt management plans, combined with budgeting, is an option that may provide sufficient relief for student loan borrowers to enable them to balance all of their monthly payments.
Borrowers looking for information about their student loan repayment options should go to the DMCC Student Loan Center or call 866-204-0520, Monday through Thursday 9:00am to 6:00pm ET or Friday 9:00am to 3:00pm ET.
About Debt Management Credit Counseling Corp.
DMCC is a 501c3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Personal counseling is provided to consumers to identify the best options for the repayment of their debt at no charge. DMCC is a U.S. Department of Housing and Urban Development Approved Housing Counseling Agency, is approved by the U.S. Department of Justice to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.
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NFCC Provides Snapshot of Typical Consumer Seeking Financial Counseling
Washington, DC (PRWEB) May 22, 2014
Mid- year is often a time when many evaluate where they stand financially. To help consumers measure their financial health, the National Foundation for Credit Counseling® (NFCC) has provided a picture of the typical consumer who came to an NFCC member agency for financial counseling in 2013, and encourages consumers to use this information as a financial check-up tool, benchmarking their situation against those who self-identified as being in need of financial guidance.
“More than 1.5 million consumers reached out to an NFCC member agency last year for answers and solutions to their financial concerns around debt, housing, budgeting and bankruptcy. Examining their financial profile can provide guidance for others, helping them determine their own level financial wellness,” said Gail Cunningham, spokesperson for the NFCC.
Consider some of the red flag characteristics of consumers who sought financial counseling from an NFCC member agency in 2013:
The number one reason to seek counseling was “poor money management,” eclipsing “reduced income” which had held the top spot since 2009. Why a red flag: An improving economy may put more money in people’s pockets, but if not managed properly, it can still result in financial distress.
The age of the majority of consumers was fairly evenly divided between 25-54, with young adults in the 25-34 age group leading the way (24%), followed by the 35-44 range (23%), and the 45-54 group (21%). Why a red flag: Financial problems can occur at any stage in a person’s adult life which, if left unaddressed, can begin a negative spiral from which it can be difficult to recover.
The average household take-home income was $ 35,081, with an unsecured debt of $ 17,548, resulting in an unsecured debt to income ratio .50. Why a red flag: Owing too much relative to your income resulting in a high debt-to-income ratio not only makes it harder to meet all debt obligations, but can hinder future borrowing.
Consumers seeking help carried an average of 5.7 credit cards. Why a red flag: The number of credit cards a person has is not as important as how they manage them. Whatever the number of cards, maxing out the lines of credit will likely harm a person’s credit score.
“Consumers are smart to contact a trusted organization for financial help,” continued Cunningham. “However, the one mistake many of them have in common is that they wait too long to reach out for assistance. Delaying taking action allows the problem to escalate, often causing financial damage that could have been prevented.”
Consumers who recognize similarities between their situation and those who sought assistance from an NFCC member agency should follow their lead and take action now. To be automatically connected to the office closest to you, dial (800) 388-2227, or for assistance in Spanish call (800) 682-9832. Inquire about the NFCC’s Sharpen Your Financial Focus™ program which has helped tens of thousands of people find solutions to their financial problems. To learn more about what the program has to offer, visit http://www.SharpenToday.org or http://www.agudicehoy.org.
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The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit financial 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 millions of consumers through more than 600 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit http://www.nfcc.org. Visit us on Facebook: http://www.facebook.com/NFCCDebtAdvice, on Twitter: twitter.com/NFCCDebtAdvice, on YouTube: http://www.YouTube.com/NFCC09 and our blog: http://financialeducation.nfcc.org/.
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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Posted in Debt | Tags: Consumer, Counseling, Financial, NFCC, Provides, Seeking, Snapshot, Typical | 4 Comments »