Consumer Credit Counseling Service of Greater Atlanta to Offer Free Reverse Mortgage Counseling

/PRNewswire/ -- Beginning immediately, Consumer Credit Counseling Service (CCCS) of Greater Atlanta will offer free reverse mortgage counseling sessions nationwide.

The decision comes as a result of a $1.8 million grant from the U.S. Department of Housing and Urban Development (HUD), which was awarded to the national nonprofit counseling agency late in 2009. While most of the agency's other services are offered free to consumers, reverse mortgage counseling has historically required a consumer payment. This new grant funding will allow CCCS of Greater Atlanta to provide more than 12,500 reverse mortgage counseling sessions at no cost through September 2010.

A reverse mortgage (also called a home equity conversion mortgage, or HECM) is a loan that allows a homeowner to convert the equity in their home into tax-free income without having to sell the home, give up the title, or take on a new or additional monthly payment. Instead of making mortgage payments each month, the homeowner can receive income in the form of a lump sum, or as monthly payments. As long as the homeowner lives in the home, pays the property taxes and insurance, and keeps the home in good condition, they will not lose the home.

To be eligible for a reverse mortgage, homeowners must be 62 years of age or older, have paid off their mortgage or have only a small balance remaining, and their home must be their principle residence. In addition, HUD requires consumers to speak with an approved HECM counselor prior to obtaining the loan.

"A reverse mortgage can offer seniors greater financial security," said Suzanne Boas, president of CCCS of Greater Atlanta. "It can be used to supplement social security or meet unexpected medical expenses, allowing seniors to remain in their homes. However, it can be an expensive option, and is not the right solution for everyone."

"We hope seniors across the country will take advantage of this opportunity," Boas continued. "Obtaining this free counseling from a reputable and qualified nonprofit agency will help them understand all aspects of a reverse mortgage loan, and make an informed decision that is best for their unique situation."

HUD requires all reverse mortgage lenders to provide homeowners a list of nonprofit counseling agencies that provide reverse mortgage counseling. CCCS of Greater Atlanta is one of a small number of counseling agencies designated by HUD to provide counseling nationwide.

Seniors can schedule a reverse mortgage counseling session by calling CCCS of Greater Atlanta directly at 866-616-3716, seven days a week, in English and Spanish. Counseling can also be initiated online at www.cccsinc.org/reverse.

All of the agency's reverse mortgage counselors are college graduates, have completed the Home Equity Conversion Mortgage (HECM) qualification exam approved by HUD and participate in reverse mortgage education classes.

To learn more, visit www.cccsinc.org and click on "I'm looking for information on a reverse mortgage" in the "Get Help Now" menu. There you will find a step-by-step guide to evaluating a reverse mortgage as well as helpful resources from organizations such as AARP.

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Money Management Tips for the Newly Unemployed

PRNewswire/ -- With the nation's unemployment remaining high, Consumer Credit Counseling Service (CCCS) of Greater Atlanta today reminds people who have lost their jobs to continue paying their bills on time and managing their credit wisely during this difficult period.

Managing your credit during unemployment is critical since having good credit is a requirement for some jobs. "Some people have the professional and education background for a new position, but may have an inability to pay bills on time," says Mechel Glass, CCCS of Greater Atlanta's director of education. "Failing to manage your finances during unemployment could affect your credit report and hurt your chances of landing a new job."

As part of its education mission, the national nonprofit credit counseling agency teaches classes on money management. Below are some money management tips to help people through a period of unemployment, as well as long-term tactics to implement once they have a new job.

Short-Term Money Management Tips

People who have recently lost a job should determine if they are eligible for unemployment benefits from their state Department of Labor. While state laws vary, a person is often eligible for benefits as long as they have not received a severance package from their employer or receive retirement income.

Once you have lost a job, consider the following tactics:
-- Make looking for a new job your full-time job. It may take several
months for people in some professional and financial services to find a
new job. Each day you need to network with friends and former
colleagues, look for jobs online and apply for new positions.


Plenty of assistance is available. For example:
-- Contact Angel Food Ministries to obtain food at the lowest possible
cost. The organization can be reached at 1.877.366.3646 or
angelfood@angelfoodministries.com.
-- Call United Way at 211 to find out about other low-cost services, such
as day care.
-- If you are paying off a student loan, contact the financial company
servicing the loan to find out if you can defer or reduce your
payments.
-- Contact the financial company servicing your automobile loan to see if
you can make a similar arrangement.
-- Make at least the minimum monthly payments on your credit card
accounts. If that is impossible, contact your lender, explain your
loss of income and advise them when you will be able to resume making
payments.
-- If you cannot make your mortgage payment, contact a mortgage counselor
at 1-888-995-HOPE.
-- Consider downsizing your lifestyle by reducing expenses such as club
and gym memberships, cable television, bottled water and movies. Find
ways to reduce "everyday" expenses, such as telephone use and dining
out at restaurants. For example, families with cell phones for each
person may not need a land line and cooking all meals at home could
easily save a family hundreds of dollars each month.


Long-Term Money Management Tips

Many people now unemployed formerly worked in high-income professional jobs, such as those in the mortgage, real estate or securities industries, and may not find a new job paying as much money. They should consider a change in their lifestyles to meet their financial obligations in the future. Here are some tips to do that:

-- Develop a new, realistic budget that will enable you to pay for
essential expenses and bills before any extra or luxury items. Consider
developing a budget so you can live on 70 percent of your new income,
with the remaining 30 percent used for savings and investments.
-- Consider selling your car, especially if you have a high monthly
payment, and purchase a less expensive model with smaller monthly
payments.
-- If it's difficult to make your mortgage payment each month and you can
live in a smaller home, consider putting your home up for sale. While
home prices are depressed, it may be a better long-term solution to
live in a home you can afford.

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People Seeking Credit Counseling in August Earned $49,308 Annually, Nonprofit Agency Finds

PRNewswire/ -- People seeking budget and debt counseling in August had an average annual household income of $49,308, an amount far above historic levels for people seeking this service, reports Consumer Credit Counseling Service (CCCS) of Greater Atlanta.

The income data is based on counseling sessions with 5,549 individuals in August who reported an average monthly income of $4,109, which is nearly 18% higher than the monthly income of people who sought credit counseling in August 2007. One year ago, people receiving the same kind of counseling had monthly incomes of $3,492.

"Rising unemployment, the continuing mortgage and credit crisis and rising food and fuel costs are causing people with good incomes to seek help paying their debt," said Suzanne Boas, president of Consumer Credit Counseling Service (CCCS) of Greater Atlanta. "People with middle-class incomes are finding it more and more difficult to meet their financial obligations."

CCCS of Greater Atlanta is a national nonprofit credit counseling agency that helps people in all 50 states in financial distress. People seeking budget and debt counseling are first-time callers who receive a free, confidential one-hour counseling session to help them find solutions for excessive debt.

Through the first eight months of 2008, the agency has conducted more than 37,000 budget and debt counseling sessions, a 39% increase compared to the same period in 2007.

People seeking credit counseling in August 2008 also reported this information:

-- The average person spent $638 for food and fuel in August, which is 20% higher than the amount people were spending in January, only eight months earlier. While people seeking help paid less for fuel in August than July, the amount spent on food continues to climb.

-- People seeking credit counseling who own their home reported monthly housing costs of $1,423, a 25% increase compared to people seeking credit counseling in August 2007.

CCCS professional counselors offer individual, confidential advice for developing budgets, managing money, using credit wisely and building a savings plan. Counselors will review a person's financial situation and help determine the best possible financial strategies. The counselor will offer solutions to a person's current financial problems, as well as personalized plans for preventing financial pitfalls in the years to come.

This service is available in English or Spanish. People can call for a free budget counseling session today at 1-800-251-CCCS (2227), or can begin an online counseling session at www.cccsinc.org .

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New Picture of Personal Finances Shows, in Case of Emergency, Two in Three ''Household CFOs'' Are at Risk

BUSINESS WIRE --A recent national survey of “Household CFOs” - people who are primarily responsible for the financial management of their household - reveals that a majority are not adequately prepared for short-term financial setbacks or long-term financial needs like retirement. In fact, 68 percent of households do not have emergency savings accounts, putting them at financial risk in the event of a crisis.

The survey was conducted by Consumer Credit Counseling Service (CCCS) of Greater Atlanta, a national credit counseling agency that has been educating consumers on money and debt management, housing, and bankruptcy and foreclosure prevention since 1964.

In response to survey findings(a) and current economic conditions, CCCS is launching a national awareness campaign, “Household CFO,” and enhancing its CredAbilityU online education program to offer free, easy-to-use interactive webinars and financial management tools.

“The time and energy it takes to manage the day-to-day leaves little time for thinking about what lies ahead. People often become overwhelmed and forget to include savings and long-term planning in their budget. But, it’s essential,” said Mechel Glass, director of education for CCCS. “We launched the Household CFO campaign to share what we’ve learned in our 44-year history, encourage proactive financial education and help individuals better prepare for financial stability.”

Survey results showed that Household CFOs recognize the importance of financial planning and are comfortable with daily financial management tasks. However, respondents were more likely to rate their knowledge of more complicated and long-term financial preparations as “Average” or “Below Average.” In fact, one in six respondents do not have any financial goals or long-term plans in place, such as a budget, retirement plan, investment portfolio or any kind of savings, and nearly one in three households has not prepared a will, purchased insurance of any kind or made other preparations for a significant life-changing event.

“A long-range financial plan is particularly critical during times of economic uncertainty like the present,” said Ilyce Glink, nationally-syndicated personal finance and real estate journalist and member of the National Advisory Council for CCCS. “A general guideline is to save 10 percent of net income and have 6 months income available in an emergency fund or savings account. But if saving 10 percent of your net income seems impossible in a time where gas prices are rising, try to set aside five percent and build in an extra one percent each month until you've reached that 10 percent threshold.”

Though many aren’t prepared, nearly half of survey respondents experienced extenuating circumstances within their household in the past 12 months that negatively affected their finances. Almost one in three experienced a medical emergency or a change in health status. One in six reported a job loss, and one in ten went through a divorce.

“With free resources available to Household CFOs, it’s easier than ever to become more knowledgeable about managing finances in their own time and at their own pace,” said Glass. “Through courses like 'How do I save my home?,' 'Why am I a 678 credit score?,' and 'Living on 70 cents a day,' Household CFOs can easily build their confidence while building financial stability for the future.”

Glass recommends the following Web sites as resources for effectively managing household finances:

www.HouseholdCFO.org - Free webinars and financial management tools via CredAbilityU, including mortgage calculators and budget trackers
www.ThinkGlink.com - Useful news, tips, advice and information from Ilyce Glink, financial expert, regarding personal finance, real estate and consumer issues
www.MyFico.com – Credit score reporting and education
www.AnnualCreditReport.com - Free annual credit reports
www.MFEA.com - (Mutual Fund Investor’s Center) Basics on investing in mutual funds

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2008 Housing Counseling Demand Soars 184 Percent at Consumer Credit Counseling Service of Greater Atlanta

PRNewswire/ -- More than 30,000 Americans turned to Consumer Credit Counseling Service (CCCS) of Greater Atlanta for housing counseling in the first half of 2008, nearly equaling the agency's total number of housing clients for all of 2007.

The increase in families seeking the nonprofit agency's help tracks the deepening of a national mortgage crisis that initially affected mostly low-income borrowers, but is now spreading to people with higher household incomes. For the first time in the 44-year history of CCCS of Greater Atlanta, the average household income of clients seeking housing counseling exceeded $40,000.

In addition to a 184 percent jump in new housing counseling sessions in the first six months of 2008 compared to last year, the agency helped many more people overall in each area of service:

-- Total counseling sessions conducted in person, by phone and over the Internet, increased from 120,000 in the first half of 2007 to 170,641 in the same period this year, an increase of more than 41 percent.

-- Bankruptcy counseling sessions increased from 79,417 in the first half of 2007 to 100,789 in the same period this year, an increase of 26.9 percent.

-- Budget and debt counseling sessions increased from 29,544 in the first half of 2007 to 38,837 in the same period this year, an increase of 31.5 percent.

"Demand for our counseling services is rising significantly as people try to avoid foreclosure and bankruptcy, as well as cope with rising gasoline and food costs," said Suzanne Boas, president of CCCS of Greater Atlanta. "Our agency will add at least 80 new housing counselors in the second half of this year to continue to help people avoid foreclosure and meet other financial needs."

The hiring of 80 new housing counselors and plans to open a new metro Atlanta counseling center are the result of a $2 million grant made in June by the Ford Foundation. The grant will support the agency's expansion of a pilot test of a new software platform that lets credit counselors eliminate lengthy delays faced by homeowners in urgent need of modified mortgages.

Approximately three-fourths of housing counseling sessions during the first half of 2008 involved individuals seeking help to avoid foreclosure of their home. The Atlanta-based agency is one of the nation's leading nonprofit counseling agencies helping people seek solutions to foreclosure. It provides counseling to homeowners in all 50 states 24 hours a day, seven days a week, through a 24-hour hotline, 1-888-995-HOPE.

The rise in people seeking CCCS of Greater Atlanta bankruptcy counseling follows an increase in the country's bankruptcy rate. Federal bankruptcy law requires individuals to complete credit counseling before they can file for bankruptcy. Approximately 20 percent of all of Americans who file for bankruptcy seek counseling help from CCCS of Greater Atlanta.

Budget and debt counseling primarily serves individuals struggling with credit card, medical and other unsecured debt. These people often seek help to pay their creditors. The agency tries to work out debt management plans for people who cannot make their minimum payments.