A New Year has started and many consumers have vowed to get their debt under control. One such group is gathered in a meeting room taking a class from the Community Credit Counseling Service, a Non-profit based in Denver, CO. Executive director Chad Gentry says “there has been a definite burst from the New Year’s resolution crowd”, going on to say some are doing it cause they can, but most do it because they must.
A struggling economy and general lack of financial education keeps debt educators such as Mr. Gentry busy year round. Last year the CCCS alone served 5,200 people and is one of several hundred such groups. Gentry says that the big change over previous years has been an increase in the upper middle class who were previously financially stable. By the time the economy has recovered, these upper middle class consumers will have gone through their savings, home equity, 401(k)s, and credit cards and will be left with only a massive amount of debt.
These classes are for serious financial problems which some organizers have defined as “pre-bankruptcy”. Bankruptcy filings up 33% over 2008 and the group of consumers who are at the brink are even greater.
Katy Rogers, a CCCS program director says “our mission is to help people reach financial stability. Sometimes bankruptcy is a part of the journey.” She points out that not only has there been a rise in consumer credit debt but also a significant plunge in the rates of savings.” She says bankruptcy is a chance to wipe the slate clean, but comes with lower credit scores and higher interest on loans in the future.
Classes like those at the CCCS are an important tool for not only those consumers who are currently in financial trouble, but also those who are headed on that path. All of the counselors we talked to reiterated the importance of being prepared. Classes are usually available though local non-profits and some community colleges as well as online. We have included a couple of links to programs offering help, and you should also check out the available local resources in your area.
Online Debt Programs
James Watson is a regular contributor to PaydayChoices and Sr. Reporter covering Debt & Debt Repair. Please contact James or leave a comment below with thoughts or questions.
