Personal Finance presentation financial counseling services prepare to get financially fit by practicing personal finance, Consumer Credit Counseling Services, CCC s, Consumer Credit Counseling Service agencies, our internal revenue service 501 c 93 nonprofit organizations that will help you find a workable solution to financial problems. So this is one place where they can be going to for help for problems with things such as possibly credit types of problems. Each CCC s agency offers a common set of services including financial education, budgeting, assistance and debt management plans, the history of the Consumer Credit Counseling Service.
So brief history here the FCC was founded in 1951 to promote awareness of credit and financial literacy. This was in response to the widespread introduction of credit cards and the emergence of the credit card industry. So obviously that was a big change that took place and in order to safeguard make things going smooth Li to make sure that people have the awareness necessary. We have this set up the nfcc began offering nonprofit credit counseling as a new service for those obtaining their first credit card. So obviously that access to credit, easy access to credit, if you’ve never had it before, can be a little bit difficult to deal with.
You want to make sure or this was set up in order to give some support to individuals so individual CCC s offices sued opened around the country. Although the individual CCC s offices were independently operated. They were all under the umbrella organization and guidance of the nfcc. So what is the FCA in 1993, the financial counseling Association of America the FCA was founded as an alternative to the FCC. So we have the slight change here. The FCA focuses on some of the newer technologies and allows counseling by phone and online.
So they updated their services in essence and basically have the ability to possibly give more services related to the newer technologies that are going to be out there and being able to communicate with people. Consequently, credit counseling agencies can reach a wider geographical area. So hopefully, you can get access to them if necessary. The s the CCC s agencies may be a member of the nfcc or the FCA but aren’t required to operate under either organization. So what kind of credit repair services does credit.org provide? If you need help to get out of debt fast or to improve your credit, you can get started for free with a credit coach.
So in other words, if you take a look at this and you do some research in on it, you might be able to get a credit coach, which could give you some support to put together possibly a fairly personalized, hopefully a more personalized plan for you to take the steps necessary to deal with the credit problems, what our debt management plans, our credit.org partners with nonprofit credit counseling agencies to offer debt management plans, d m peas, these plans consolidate a consumers unsecured credit and debt payments into one convenient monthly payment.
So one of the ways to deal typically when you have debt problems would be to say, Okay, I’ve got these five credit cards out there, I’ve got this other loan that’s going to be out there I’ve got of possibly a mortgage or something like that, and say, How can we deal with this in that the consolidation process, which could allow us to make one payment, which could be easier or and more convenient? And how can we arrange these payments that are being made in such a way that we’re paying the least amount of penalties and interest in possibly the consolidation could be useful for that,
as well as to consider if there’s any other kind of benefits like tax breaks and whatnot, with within the consolidation process, some of the advantages of having a debt management plan include concessions from your creditors, including a reduction in interest rates, or elimination of late fees. So it’s possible that through the consolidation process, if you talk to your creditors and say, hey, you’re going through the consolidation process, is it possible to reduce due to this, any of the interest in late fees possibly, the creditors could have an incentive in order to cooperate with that, if they believe that them doing so will create a good relationship and likely make it easier for them to actually get paid the rest of the money basically going forward.
So a single monthly payment to all of your creditors. So it might be nice if you could basically say, hey, I’d like to consolidate all this stuff. So I pay one amount that might be easier to budget and plan for reduced total monthly payments. They might be able to consolidate in such a way that you can get a better rate for one loan than multiple loans. That could be the case in the fact that if people have a lot of credit cards, you might then have a lot of different rates that are going on the credit cards.
And as they extend out, those rates could be higher. So just consolidating that into a standard type of loan might make it so that you can make a lower type of payment. Again, you might have other alternatives that could be there, possibly with tax incentives, and so forth for certain types of debt, that might be helpful to lower the actual payments that would be involved as well lower interest rates. So clearly, one of your objectives is to consolidate the debt.
Again, most likely taking those credit card payments and putting them into a loan payment, so that you can possibly get lower rates than a credit card might give, especially at the later point times if you haven’t been paying for some time or you’ve been paying the minimum balances and the balances have been growing, personalized budget, budgeting advice. So obviously everybody’s financial situation is different. So it would be nice to work with someone that knows your particular situation that has you know, experience in this consolidation process, so they can maximize you know, the benefits to you in your particular type of situation.