2017 Archives - Consumer Credit

ACCC Asks Millennials: “Do You Know How To Use Credit Responsibly?”

Brian Frye — Sun, 10 May 2020 16:56:55 +0000

Although the thought of acquiring credit card debt can be intimidating, credit cards can be useful financial tools if utilized properly. Credit cards are an effective way to start the process of building credit – particularly for millennials who eventually want to purchase larger items such as homes or cars. National nonprofit American Consumer Credit Counseling offers helpful guidelines for Millennials on how to use credit responsibly.

“The way Millennials use their card and how much they understand about credit will determine whether they have good or bad credit,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, based in Newton, MA. “Before applying for a credit card, it is important that young people learn responsible financial behaviors to ensure they don’t fall deep into debt.”

According to a survey by Bank rate, only 33 percent of millennials have a credit card compared to more than half of people aged 30 to 49 and almost 70 percent of those who are 65 and older. According to Forbes, just six percent of millennials think missing a credit card payment will improve their credit score and 17 percent said it would have no effect. The survey also found that 48 percent of Millennials carry a balance with high interest each month.

Before millennials get themselves in over their heads, here are some ways they can protect themselves by using credit wisely:

Don’t use credit cards to finance an unaffordable lifestyle
Avoid using credit cards if you’re already in financial trouble
Don’t get hooked on minimum payments
Don’t run up the balance in reliance on a temporary “teaser” rate
Make your credit card payments on time
Avoid the special services, programs and goods that credit card lenders offer to bill to their cards
Beware of unsolicited increases to your credit limit
Don’t max out your cards

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

For credit counseling & Student Loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit https://www.consumercredit.com/debt-resources-tools/

New Survey Finds Many Consumers Will Spend $500 Or Less On All Holiday Gifts

Brian Frye — Wed, 27 Dec 2017 14:34:16 +0000

Budget-conscious consumers are keeping a check on holiday shopping this year – with many spending no more than $500 in total on gifts and other seasonal items, according to a new survey by American Consumer Credit Counseling (ACCC).

The survey found 81 percent of respondents will spend $500 or less on holiday shopping in 2017, compared to 76 percent from a similar poll conducted by ACCC in 2014. Just six percent of those surveyed this year are relying on credit cards for holiday gifts and expenses.

The online poll surveyed 194 consumers on the organization’s website, www.consumercredit.com

“It is easy to feel a financial strain during the holidays, especially if you haven’t set a budget,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling – a national non-profit based in Newton, MA. “The best way to avoid trouble is to go into the holidays with a plan for spending. And we’re finding the majority of budget-conscious consumers that we encounter are doing just that in 2017.”

By comparison, according to a Holiday Retail Survey by www.consumercredit.com, the average American consumer is expected to spend $1,226 during this holiday shopping season. Most of those polled by Deloitte (81 percent) reported that their household financial situation is the same or better than last year.

More than half of consumers surveyed by ACCC reported using either cash, a checking account or debit card for all holiday shopping. Of the small percentage of respondents using all credit, Millennials made up nearly half. Baby Boomers, however, indicated they are trying to avoid piling on new debt – with 54 percent of Boomers using debit cards and checks.

You can view an infographic illustrating the survey results here:

According to the ACCC survey, only 22 percent said holiday shopping put a strain on their finances – and 51 percent said they find it easy to stick to a budget.

For credit counseling and student loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at https://www.consumercredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt counseling, bankruptcy counseling, housing counseling, student loan counseling and financial education. Each month, ACCC invites consumers to participate in a poll focused on personal finance issues. The results are conveyed in the form of infographics that act as tools to educate the community on everyday consumer debt issues and problems. By learning more about financial management topics such as credit and debt management, consumers are empowered to make the best possible financial decisions to reach debt relief. As one of the nation’s leading providers of personal finance education and credit counseling services, ACCC’s certified credit advisors work with consumers to help determine the best possible debt solutions for them. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). To participate in this month’s poll, visit ConsumerCredit.com and for more financial management resources visit https://www.consumercredit.com/debt-help/.

ACCC Helps Millennials Become Financially Literate

Brian Frye — Fri, 22 Dec 2017 00:38:12 +0000

Understanding basic money management skills are extremely important for Millennials’ long-term financial stability and success. Strong financial literacy means understanding concepts such as budgeting, checking and savings accounts, credit, and investments and the most beneficial ways to spend your money. National nonprofit American Consumer Credit Counseling (ACCC) provides simple steps to help Millennials become financially literate.

“Understanding basic money skills can go a long way when it comes to living a healthy financial life,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling, based in Newton, MA. “The more financial literacy Millennials have, the easier it is for them to avoid excessive debt and prepare for the future.”

According to a survey by the National Endowment for Financial Education and George Washington University, only 8 percent of Millennials claim they have a high level of financial knowledge. Two-thirds of the respondents admit to having at least one long-term debt, such as a car loan, student loan or home mortgage. When asked about an emergency fund, only 32 percent say they have enough for three months of household expenses.

With a few simple steps, it is possible for millennials to become financially literate.

Learn how to budget – Learning how to budget is the cornerstone of responsible financial planning. Creating and maintaining a budget shows precisely how much money you have and where it’s spent. A budget will help you find ways to save money and plan for the future.
Understand credit – Learn the most important concepts of credit, including why credit is necessary, the information used to calculate a credit score, and how to improve a credit score. It’s also crucial to understand the best strategies for paying down credit card debt.
Create a checking/savings account – Creating a checking and savings account is one of the first actions you can take to keep your money safe and make paying bills easier and more convenient.
Understand debt/loans – There are some student loan repayment options to help you pay off student loans promptly that will also work with your budget. Repayment plans can be changed at any time, even if you’ve been assigned a specific plan when you first began repaying the student loan.
Understand the danger of identity theft – Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number, or other identifying information without your permission to commit fraud or other crimes. The best way to help prevent becoming a victim of identity theft is to safeguard your personal information.

For credit counseling and student loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

ACCC Helps Millennials Get Rid Of Credit Card Debt

Brian Frye — Thu, 21 Dec 2017 00:55:03 +0000

Getting rid of credit card debt is a big step in a Millennial’s effort to establish financial security. Although it sounds simple, paying off a credit card can be difficult to achieve. National nonprofit American Consumer Credit Counseling (ACCC) provides Millennials with strategies on how to pay off their credit card and get out of debt.

“How to effectively pay off credit card debt is an issue that many Millennials wrestle with, particularly if they are also struggling with everyday expenses and student loan debt,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “Paying off credit cards can be daunting, especially if the balances are high and the person is only able to make the minimum payment each month. If not properly managed, credit cards can have a serious effect on a Millennial’s finances.”

According to a survey by Credible, 33 percent of Millennials say debt is the scariest aspect of their daily lives – even more than war or death. When it comes to credit cards, Millennials are most afraid of making monthly payments (32 percent) and accruing interest (32 percent), followed by relying too much on credit (20 percent).

ACCC offers Millennials strategies on how to pay off a credit card and get out of debt.

Evaluation – Evaluate your financial outlook and get a complete picture of your current financial situation.
Budget – Develop a budget that allows you to pay down your credit card while still covering your living expenses.
Analyze and reduce spending – Once a budget is set, look for areas you can cut back on and apply to your credit card payments.
Choose a repayment method – Consider the debt avalanche method, where an individual pays down debts in order of highest interest rates first, or the debt snowball method, where one pays the debt in order of balance. In both of these cases, Millennials will make larger payments to one account until it is paid off, while making minimum payments on others.
Contact creditors – Sometimes creditors are willing to work with you to help make paying off debt more manageable. They may agree to reduce the interest rate or wave some fees temporarily, so it is worth the call.
Seek counseling – If Millennials are still having trouble reducing their credit card debt after following these steps they should consider contacting a credit counseling agency.

For credit counseling and student loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

ACCC Provides Tips For Millennials On How To Avoid Common Holiday Financial Mistakes

Brian Frye — Tue, 19 Dec 2017 02:46:41 +0000

The holiday season is in full swing, and many Millennials have started shopping for friends and family. While the holidays are a time of cheer, there is a high risk of overspending if individuals are not properly prepared. National nonprofit American Consumer Credit Counseling (ACCC) has provided Millennials with financial mistakes to avoid this season.

“It is easy for Millennials to become overwhelmed during the holiday season and fall into a spending spree,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “It is important that Millennials go into the holiday season with a strategic plan to avoid starting the New Year with too much debt and a big hole in their savings.”

According to a forecast by International Council of Shopping Centers, Millennials plan to spend an average of $554.40 on holiday gifts. Fifty-four percent of Millennials said they would make their holiday purchases with debit cards or cash.

ACCC provides Millennials with tips on the most common holiday financial mistakes to avoid.

Not setting a budget. Create a budget at the beginning of the year and don’t forget to include holiday spending.
Not sticking to a budget. Create a shopping list based on your budget and stay on track. It is helpful to make a list of everyone you have to buy for with possible gift ideas and spending limits.
Falling victim to bargains. Just because something is a “good deal” doesn’t mean it’s a good deal for you. With so many different discounts it’s easy to fall into the trap of buying something just because it’s on sale.
Last minute shopping. Shopping while stressed can hinder your decision-making skills and can lead to unnecessary spending. Try to plan and shop well in advance to avoid panic spending.
Not keeping receipts. Most stores will honor the purchase price within a few weeks of the purchase and give a full refund.
Relying only on credit cards. Millennials tend to spend more when paying with credit cards. Paying with cash allows them to watch the money disappear physically. A cash-only plan may help Millennials control their spending and hopefully save money during the holiday season.

For credit counseling, and student loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at https://www.ConsumerCredit.com

About American Consumer Credit Counseling

ACCC Helps Millennials Rebuild Their Credit

Brian Frye — Thu, 14 Dec 2017 01:22:56 +0000

It is important that Millennials are aware of how they can rebuild their credit should they find themselves trying to recover from a financial challenge or misstep. Although these missteps cannot be instantly deleted, national nonprofit American Consumer Credit Counseling (ACCC) provides Millennials with steps they can take to improve their credit to help achieve a stronger financial future.

“It’s not uncommon for young people to experience financial challenges that can negatively impact their credit scores,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “Having a strong credit score makes it easier for young people to secure loans and lower interest rates. If you find yourself with a poor credit score, there are several steps you can take to build it back up.”

According to TransUnion, 43 percent of Millennials have bad credit, meaning their credit score is 600 or lower. Only 6 percent of Millennials have credit scores in the super prime category, 781 to 850. TransUnion also found that Millennials are using 79 percent of the credit that is available to them.

ACCC provides steps Millennials can take to rebuild their credit after a financial misstep.

Check credit reports regularly. It is important to review credit reports regularly to ensure there are no errors. Millennials can receive free credit reports from each of the three credit reporting agencies. They should also keep track of monthly bills to make it easier to cross check the credit report with bank statements to ensure there are no errors.
Pay bills on time. Late payments can negatively affect credit scores. If you can’t pay off the entire balance, it is important to try and pay at least the minimum. Set reminders on payment due dates to ensure you do not miss one and save on interest and fees.
Don’t max out credit cards. Having more transactions does not improve credit. Be sure to maintain the credit utilization under the recommended 30 percent when rebuilding credit.
Take a look at your budget. If you are having trouble paying your bills on time look at your budget and see if there are areas in which you can cut back on spending.

For credit counseling and Student Loan Counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

ACCC Helps Millennials Budget For Emergencies

Brian Frye — Fri, 01 Dec 2017 00:46:14 +0000

One of the most effective ways Millennials can protect themselves from a financial crisis is to have an emergency fund in place. In order to prevent Millennials from getting caught off guard due to unexpected expenses, national nonprofit American Consumer Credit Counseling has provided emergency savings starter tips.

“Unfortunately, it’s easy to fall behind on bills if confronted with an unexpected expense, whether it be medical, a major housing or car repair or some other emergency,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “Setting aside money for an emergency fund is the best way Millennials can protect themselves should one occur. An emergency fund should be enough to cover three to six months of expenses.”

According to a new survey by Earnest, Amino and Ipsos, 68 percent of Millennials could cover $500 in an emergency without falling into debt, compared to the 43 percent of Americans in other age categories who say the same.

American Consumer Credit Counseling provides Millennials with important tips on how to budget for emergencies:

Start small – Millennials should take a look at their budget and figure out a realistic amount of money that can be set aside into their emergency fund. Do not forget to include it as a “new expense” in your budget. Whether it be $10 a day or $10 a week, it is important for Millennials to start with an amount their budget can handle.
Reduce Spending – Are there specific areas you can cut back? Some ways Millennials can save on everyday expenses include making meals at home, remembering to turn off the lights, and reducing their cable subscription. For more tips on cutting back see ACCC’s How to Save by Cutting Back tips.
Generate Cash – Are there household items or clothes you no longer need or wear? Gather these items and sell them to quickly boost your cash on hand and put it directly towards your emergency fund.
Set Achievable Milestones – Start with trying to set aside $100 for an emergency fund. Once this goal has been achieved, try challenging yourself more by setting aside $300 or $500. Continue increasing the target amounts until you have enough set aside to cover a few months worth of expenses.
Automatic Payments – Once you have enough saved to house your emergency fund in its own account, set up automatic transfers so you are constantly contributing to ensure steady growth.

For credit counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling Helps Millennials Manage Student Loans

Brian Frye — Thu, 30 Nov 2017 01:01:33 +0000

Millennials are more burdened by student loans and student loan debt than any generation before them. Due to this current crisis, national nonprofit American Consumer Credit Counseling is providing Millennials with helpful tips to better manage their student loan debt.

”Each year the cost of college continues to rise,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “This is likely one of the key reasons why student debt has become the second highest consumer debt category, surpassing credit card and auto loan debt.”

According to Forbes, the Class of 2016 graduated with an average loan debt of $37,172. Forbes also found that the current Student Loan Delinquency rate is 11.2 percent. Make Lemonade found that there are currently 44 million student loan borrowers who make up more than $1.4 trillion in student loan debt.

American Consumer Credit Counseling provides Millennials with important tips on how to manage their student loans.

Understand your loans and loan agreements – It is important to understand the types of student loans you have, the variety of student loan repayment options available, and different programs offered to federal and private loan borrowers. Read your promissory note, which is a legal document.
Make payments on time – Making payments on time is not only the best way to avoid loan default and eventually pay off your loan, it’s an excellent way to build credit. Building good credit also helps when it comes time to make a big purchase, such as buying a house.
Create a budget – Create a post-college budget that includes all expenses, from credit card payments to utilities and groceries. By creating a budget and sticking to it, you can ensure enough savings to pay your loans on time.
Keep good records and track your loans – Track all payment schedules and keep a paper record of every monthly payment. Utilize online tools and platforms to manage your loans and stay up to date.
Address any financial challenges quickly – If you are having trouble making your monthly payment, don’t wait to address the problem. Research your options and talk to your lender. A borrower is usually considered in default if he or she has failed to make a loan payment for 270 days or more. Don’t let it get to that point. You may be able to switch repayment plans, consider an income-driven repayment plan, change a payment due date, or secure a deferment or forbearance.

For credit counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com

About American Consumer Credit Counseling

New Survey Finds Majority Of Consumers Are Actively Working Towards A Financial Goal

Brian Frye — Wed, 22 Nov 2017 14:18:47 +0000

According to a new survey by national nonprofit American Consumer Credit Counseling, 94 percent of respondents are actively working towards achieving a financial goal. Although the majority of respondents are working towards a goal, 47 percent do not actively save money from each paycheck.

“Whether it is paying down debt or saving for retirement, it is important to have financial goals,” said Steve Trumble, president, and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “When setting financial goals, they should be specific, measurable, achievable, realistic and timely. They should also be categorized into short, mid and long-term goals.”

In the long term, the majority of respondents (71 percent) are working towards getting out of debt, followed by creating a nest egg (17 percent) and affording their lifestyle (11 percent). Similarly, a Nerd Wallet study found that 58 percent of American’s most pressing financial goal is paying down debt.

Just over half (52 percent) of respondents say they put aside money from each paycheck into their savings for the future. The majority (37 percent) sets aside 5 to 10 percent of each paycheck, followed by 10 to 20 percent (11 percent), 20 to 30 percent (3 percent) and 50 percent or more (1 percent). CNBC recommends consumers should save 25 percent of their gross pay while in their 20’s.

Credit card debt is seen as the most significant obstacle in trying to achieve a financial goal in every generation. Fifty-six percent of baby boomers and 46 percent of Millennials reported this as their biggest obstacle when it comes to saving for the long term. Millennials also said low salaries as one of their biggest saving obstacles (28 percent).

American Consumer Credit Counseling conducted this online survey of 294 consumers on the organization’s website, www.consumercredit.com. You can view an infographic illustrating the survey results here: https://www.consumercredit.com/debt-resources-tools/infographics/money-management-infographic/what-are-your-financial-priorities/

For credit counseling and student loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at https://www.consumercredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt counseling, bankruptcy counseling, housing counseling, student loan counseling and financial education. Each month, ACCC invites consumers to participate in a poll focused on personal finance issues. The results are conveyed in the form of infographics that act as tools to educate the community on everyday consumer debt issues and problems. By learning more about financial management topics such as credit and debt management, consumers are empowered to make the best possible financial decisions to reach debt relief. As one of the nation’s leading providers of personal finance education and credit counseling services, ACCC’s certified credit advisors work with consumers to help determine the best possible debt solutions for them. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). To participate in this month’s poll, visit ConsumerCredit.com and for more financial management resources visit https://www.consumercredit.com/debt-help/.

ACCC Provides Tips For Millennials Preparing To Buy A Home

Brian Frye — Sat, 18 Nov 2017 02:55:17 +0000

Purchasing a home is one of the most significant financial investments Millennials will make in their lifetime. Although it can be an intimidating and complicated process, with the right preparation and research, buying a home can be manageable. National nonprofit American Consumer Credit Counseling offers helpful guidelines for Millennials on how to prepare to buy a home.

“The first and most important step a Millennial should take is figuring out how much they can afford,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling, based in Newton, MA. “It’s critical to factor in not just the cost of a home, but expenses such as property taxes, insurance, utilities and maintenance – which can add up quickly. Once this number has been decided it is important that young people take the appropriate steps to prepare for this long-term financial commitment.”

According to the 2017 annual Profile of Home Buyers and Sellers, the largest share of home buyers (34 percent) are Millennials at 36 years old and younger. According to Apartment List, 80 percent of Millennials want to purchase a home, but many of them do not have enough saved. The survey found that 68 percent have less than $1,000 to put towards a down payment.

ACCC offers important advice for Millennial homebuyers.

Check & improve credit – It is important for Millennials to check their credit report with all three credit reporting agencies to ensure there is no erroneous information on individual credit reports. Consumers should focus on making their credit score as healthy as possible. With a score of 760 or higher, consumers can qualify for the lowest interest rates. Anything below can still qualify, but the interest rates will be higher.
Take a pre-purchase homebuyer education class – Homebuyer education classes save time and stress. Offered both online and in person, these courses provide a thorough background on home buying advice and information, including different types of loans that may be available.
Know your budget – Millennials need to take a look at their budget to see if there is anything they can live without or cut back on. It is essential that Millennials know their limits when it comes to purchasing a house. Be sure to factor in all the expenses that come with owning a home, such as property taxes, insurance, potential HOA fees, maintenance and other costs.
Manage Debt – Pay down any outstanding debt including credit cards or current loans, such as a car loan or student loans. Paying down existing debt can help prepare consumers for the financial responsibility they are about to incur with homeownership.
Save – The more money Millennials can put down towards their mortgage loan, the more attractive they are to lenders. If a consumer can put down more than 20 percent, they will not have to pay private mortgage insurance.

For credit counseling & Student Loan counseling, call 800-769-3571
For bankruptcy counseling, call 866-826-6924
For housing counseling, call 866-826-7180
Or visit us online at http://www.ConsumerCredit.com