Frequently Asked Questions

 

  1. Will seeing you hurt my credit report?
     

    2. No. Consumer Debt Counselors does not report anything to any credit reporting agency. The counseling provided by Consumer Debt Counselors is CONFIDENTIAL so that you have the opportunity to learn about the options that are available to you and make an informed choice regarding how to best address the issues that you are facing.

  2. Will my employer know that I have consulted you?
    No. Consumer Debt Counselors does not speak with your employer unless you specifically instruct us to do so. All counseling is CONFIDENTIAL so that you can learn about the options available to you empowering you to make a knowledgeable decision about how to proceed with your financial life.
  3. What will it cost for me talk with a Counselor?
    4. The financial counseling provided by Consumer Debt Counselors is FREE and CONFIDENTIAL and can be provided “in person” or by telephone. Consumer Debt Counselors provides financial counseling as a public service so that you, our client, can learn about options that may be available to help you face the financial issues in your life. Counseling can be obtained as frequently as is necessary. Generally speaking, the initial counseling session will require between 60 and 90 minutes and will examine any outstanding debts that you are dealing with, your monthly income and expenses, and your assets and liabilities.
  4. Does Consumer Debt Counselors make loans?
    Absolutely not. Consumer Debt Counselors does not loan money nor do we arrange loans for our clients. If you are dealing with debt issues, we will work with you to develop a budget that will enable you to pay off your debts without creating new debt. A wise man once said that no one can borrow their way to prosperity. We agree!
  5. How long is a counseling session?
    6. Generally speaking, the initial counseling session will require between 60 and 90 minutes and will examine any outstanding debts that you are dealing with, your monthly income and expenses, and your assets and liabilities. Consumer Debt Counselors does not believe in “one size fits all” solutions and is committed to taking the time necessary to truly help you find solutions to your problems. Counseling sessions may be repeated as often as is necessary.
  6. How long do I have to work with Consumer Debt Counselors?
    Our programs are voluntary. You may work with us for as long as you desire. When you feel that have regained control of your finances and no longer need assistance, you are free to leave.
  7. Is Consumer Debt Counselors a government Agency?
    8. Bite your tongue and don’t insult us! Government does not provide the solutions, it creates the problems!!! Consumer Debt Counselors is a non-profit corporation organized under Section 501(c)(3) of the Internal Revenue Code and is dedicated to providing consumer education and financial counseling. Consumer Debt Counselors is not affiliated with any governmental organization nor does it receive any support from the government.
  8. How is Consumer Debt Counselors funded?
    Consumer Debt Counselors receives the bulk of its funding in the form of grants, and contributions from creditors. Clients are asked to make voluntary contributions to help defray administrative expenses if they enroll in a Debt Management Program. For a full disclosure of fees and contributions, Click Here.
  9. How can I develop a budget?
    Developing a realistic and livable budget should not be difficult. But, it does require work. Begin by determining all sources of income; use only “take-home” income, what you can actually spend.

    Next, list your fixed expenses, the ones that cannot change such as housing, utilities, auto loans, and food.

     

    Now, list out discretionary spending, the things that can be changed if necessary. Don’t forget to include savings for the proverbial “rainy day”.

     

    Finally, compare income to expenses. If expenses exceed income, changes must be made. We cannot spend more than we make for long. If income exceeds expenses, congratulations! You have funds that can be used to attain your long-term financial goals.

     

    Above all else, be honest with yourself. A budget that looks good on paper but has no relationship to the reality of your current spending will lead only to frustration. A good method of insuring that the budget accommodates reality is to keep an expense diary in which all expenditures are written down for ninety (90) days. At the end of the ninety days, break all of the expenses out into budget categories and compare them to the anticipated budget. Some will undoubtedly be higher than first thought; others will be less; but now, you have “real numbers” and can make changes that are based on realities rather that suspicions. For more information on creating a budget,

    Click Here.

  10. How can I develop a regular savings plan? I don’t think I have the self-discipline to do this.
    The key to developing a savings plan is to make it a habit. Pay yourself first. When you pay yourself first by including a savings line in your budget, you make sure that everybody gets paid. If you insist on standing last in line for your own money, everybody else will get paid but you. In Poor Richard’s Almanac, a book published in the 18th century, Benjamin Franklin wrote, “If a man were to become wealthy, he would” (after donating to both church and charity)” take the next 10% of his income and save it; and then, live on that which is left”. This is a strategy that is just as workable today as it was then.
  11. How much debt is too much?
    12. The answer to this question will depend on a number of factors … your income, your basic living expenses, and other obligations that you have undertaken. To determine if you have too much debt, try answering these questions.
    • Do you make only the minimum monthly payments on your credit cards?
    • Are you unaware of your exact credit card debt?
    • Does your total debt increase every month?
    • If you were laid off, would you be unable to meet your monthly expenses?
    • Are you avoiding calls from creditors?
    • Do you and your spouse argue about money?
    • Are your credit cards “maxed out?”
    • Do you borrow from one credit card to pay off another credit card?

    If you answered “YES” to more than three of these questions, you may have too much debt and may need to seek debt counseling.

  12. What is debt counseling?
    13. Debt counseling is designed to help you find ideas for paying down debts. In some cases, you will be able to develop and administer your own debt repayment plan. In other cases, a Debt Management Program may be provide the optimum solution to your debt problems. Regardless, debt counseling provides a framework within which to seek solutions to the debt issues you wish to resolve.
  13. What is a Debt Management Program?
    14. A Debt Management Program is a systematic repayment program administered by Consumer Debt Counselors. When you enroll in a Debt Management Program, creditors recognize that you are serious about paying off debts and will often make concessions designed to help you become debt-free sooner. Concessions may include re-aging of past due accounts, suspension of late and/or over-limit fees, acceptance of monthly payments that are less than might otherwise be accepted, reduced interest rates, or some combination of the above. Your Counselor can advise you of both the advantages and disadvantages of a Debt Management Program so that you can determine if such a program will be beneficial to you.
  14. Will a Debt Management Program consolidate my debts into one monthly payment?
    15. Yes. But, it is important to remember that this is not a bill consolidation loan. Rather, you will make monthly payments into a Trust Account maintained by Consumer Debt Counselors and funds will be disbursed each month to all of your creditors.
  15. I’ve heard that the new bankruptcy law requires that I obtain counseling before I can file for protection under the bankruptcy laws. Is this true?
    Yes. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that any person who intends to file for bankruptcy protection must obtain credit counseling from an agency that has received approval from the Executive Office of U.S. Trustees in the Department of Justice. You can obtain a complete list of all approved counseling providers at the website (http://www.usdoj.gov/ust/) maintained by the Executive Office of U.S. Trustees in the Department of Justice. Consumer Debt Counselors is an approved agency.
  16. Can you get my creditors and collectors to stop calling me?
    17. If you and your Counselor determine that a Debt Management Program is suitable to your situation; and, if you choose to enroll in a Debt Management Program, creditors will generally stop calling after they have accepted a proposal (and in some cases the first payment) for repayment under a Debt Management Program.
  17. What makes Consumer Debt Counselors different from other counseling agencies?
    18. Consumer Debt Counselors is not the largest counseling agency by design. We prefer to provide our clients with a more personalized level of service. Consumer Debt Counselors was founded by financial planners who recognized that in order to help people plan for the future, it is essential that they be provided access to information and education that helps them manage all aspects of their financial lives.

    When considering a counseling agency, you should ask how long the agency has existed; what kind of certification do the Counselors undergo; is the agency accredited by an independent third party; will the agency review your entire financial picture rather than pick and choose what it wants to deal with? Consumer Debt Counselors is committed to helping you deal with your entire financial situation.

  18. Do I have to live in Florida to work with Consumer Debt Counselors?
    19. No. However, please recognize that different states have different licensing and bonding requirements. If we cannot legally accept clients from your state of residence, we will do everything in our power to direct you to a counseling agency that can work with you.
  19. How do I get started?
    There is an old proverb that states, “Even the longest journey must begin with the first step.” For you, the first step is to request an appointment to talk with one of our professional Counselors.

Click Here to schedule a FREE and CONFIDENTIAL appointment with one of our professional Counselors.


Home | Debt Counseling | Budget Counseling | Bankruptcy Counseling | Bankruptcy Education | Debt Management | Private Credit Report | Florida Payday Advance Counseling
Community Education | Statement of Counseling Services

FAQs | Locations | Educational Resources | Testimonials | Contact Us | Links | Privacy Policies | Site Map

© Copyright 2000 - 2008 All rights reserved Consumer Debt Counselors, Inc.