Sign Up For News!

Follow Us!

Blogs

Give yourself some credit

I heard an ad on the radio recently claiming that all debt management agencies are really just working for the credit card companies.

I couldn't disagree more. While disreputable businesses can be found in any industry, there are many excellent debt management/debt consolidation companies out there.

Credit cardsGenerally charging a one-time setup charge and monthly administration fee, these companies will take on the unwieldy task of negotiating directly with creditors to reduce payments and create affordable payment plans. They may be able to reduce the interest rate you're paying, get late fees waived, and eliminate collection calls.

The goal is usually to roll the customer's debts into one affordable payment. From that single payment, the agency will then make timely monthly payments to each creditor, quickly repairing their client's damaged credit. The client will know in advance the date their monthly payment to the debt counseling service will end.

When borrowers have had credit issues, lenders consider applications from those who have worked with a debt counseling service much more attractive than from those who haven't. There are several reasons:

  • The credit report may mention a debt-consolidation plan with reduced payments, but the payments are timely, which is what lenders care about when deciding whether to make a loan.
  • Debt-managed accounts are active accounts, which are much better than inactive collections and past-due balances because they show an applicant is working on fixing his or her credit.
  • Most importantly, the lender knows the applicant has taken the time and effort to get their finances in order.

The important thing is to find a counselor you can trust. A good place to start is agencies approved by the U.S. Department of Housing and Urban Development.

Two agencies our borrowers have had success with are the nonprofit Greenpath Debt Solutions, (800) 327-6778, and CareOne Debt Relief Services, (888) 888-2273.

Ron Thompson is a Welcome Home Loans Mortgage Loan Originator at the Community Loan Fund.

NMLS #225348. Licensed by the New Hampshire Banking Department.

Opportunity. For all.

Blog posts

Kelli Cicirelli
Co-ops are thriving in New Hampshire

Like our country, the bedrock of the thriving co-op democracies we call resident-owned communities is that they are of the people, by the people, and for the people.  

more »
Julie Eades
Co-ops using funds to strengthen each other

Some of New Hampshire's food cooperatives are using their endowments to help create cooperatively owned manufactured-home communities.

more »
Angela Romeo
ROCs are learning to love technology

Embracing video conferencing has enabled the ROC-NH team to give its resident-owned communities more-effective and more-timely assistance.

more »
John Hamilton
Five ways to align your impact with your business investment

The key to impact investing in businesses is to align the impact you desire with the company’s goals and strategies.

more »
John Hamilton
The power of good referrals

When you're turned down for business financing, a good referral can put you on the path to "yes."

more »

Success stories

Consumers, farmers, producers benefit from food co-op's expansion

More local food on the Littleton Food Co-op's shelves is good for consumers, farmers, food producers, and the state.
more »

Loan consolidation spells well-deserved raises for teachers

Customized financing helped Tilton early-education center save money and give teachers raises.
more »

A construction loan puts Asian market back in business

A ethnic market owned by a refugee family was itself homeless for three years. A timely loan helped it reopen, bigger and better than ever.
more »

Investments deepen Endowment's impact

“Investing in the Community Loan Fund is really awesome because it’s tested, predictable, it’s giving us return, and it passes the test of financial...
more »

Matched savings make a home, and community connection, possible

An eight-to-one Individual Development Account savings match enabled a young couple to put down roots in the city they love.
more »