Oct 8, 2008 4:23 pm US/Pacific
Counselors Can Lead Way To Credit Health
SAN FRANCISCO (CBS 5) ―
Calls are pouring into
Consumer Credit Counseling Service of San Francisco: They are up 26%. People using credit cards to make ends meet are getting in trouble.
"Their monthly payments are going higher and higher, and they can't afford the minimum payments any longer," said Dan Parrish, Supervisor at Consumer Credit Counseling Service (CCCS) of San Francisco.
A credit counselor can help you get back on track. They can negotiate with credit card companies to lower interest rates and minimum payments, and set up a repayment plan. The counselor's fee is a small percentage of your monthly payment.
"It's very reasonable compared to the interest that they're saving and finance charges that they're saving," said Parrish.
If you think you may need a credit counselor, look for a non-profit organization certified by the
National Foundation for Credit Counseling. Basic services, like budget advice, should be free. Avoid a counselor that wants a large up-front fee.
And beware if someone tells you they can "clean up" your credit report.
"Any company that claims do to that, to wipe off negative information without any problem, that's not true. If it's accurate and correct information, it's going to remain on the credit report," said Parrish.
Once you get on a repayment plan, you should start getting relief soon from your creditors.
"The calls and letters to the consumer directly should stop within a few weeks," said Parrish.
For more information on credit counseling, you can call Consumer Credit Counseling of San Francisco at (415) 788-0288 or toll free at 1 (800) 777-7526.
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