Credit Counseling Services Can Help Consumers Escape Debt and Build a Solid Financial Foundation

In a Nutshell: Credit cards are valuable financial tools, but cardholders who don’t make regular monthly payments can see their debt increase rapidly. The Consumer Credit Counseling Service of Rochester provides consumers struggling to manage credit card debt information on how to take charge of their finances. The organization helps people develop a budget and learn to follow a financial plan.

I watched an interview with a professional athlete recently. During the course of the interview, the athlete implied that his determination and the grueling training program he created for himself helped his team contend for championships. Sometimes, all it takes to be successful is a little elbow grease and a lot of resolve. 

But we can’t always reach our goals on our own. Turning to others for advice, particularly those who’ve developed an expertise in an area we’re currently struggling with, can often help us achieve an objective. 

The teachers I had in school could certainly attest to my need for additional instruction to grasp certain concepts. The grades students receive on their report cards reflect their understanding of a subject, regardless of how they reached that level of comprehension. I didn’t have points deducted from my grade point average because I sought tips while studying.

The Consumer Credit Counseling Service (CCCS) of Rochester offers tools to help people overcome financial difficulties and reach their monetary goals. We spoke with Karyn Rando, CCCS of Rochester’s Director of Counseling Operations, to learn how the organization works with individuals so they can repay debt and get their financial lives back on track. 

CCCS of Rochester began in January of 1970 and initially focused on providing its services within the state of New York before expanding its footprint.

“We really started to grow during the pandemic,” Rando told us. “Smaller organizations began reaching out to us looking for help because they didn’t have the capacity to do everything and be everywhere at once for the areas they served.”

CCCS of Rochester now serves consumers across the country. In addition to its New York location, it maintains offices in Iowa, Minnesota, and Tennessee.

With a name that includes a city in New York state, you might wonder if consumers in other states are confused by its moniker. But the nonprofit came up with a solution to bring clarity to consumers in new regions it serves.

“Once we started moving into different markets, we decided to keep the names of those areas,” Rando told us. “So we have a Consumer Credit of Minnesota, for example, because it’s really helpful for community members to see that we have that tie to their market. And our branch locations in those areas lets people know that we’ve come into their community to be able to assist them.”

When it comes to managing your finances, it helps to get all your cash inflows and outflows down on paper. Seeing your income and expenditures laid out in front of you can help you form strategies that place you on a path to reach your financial goals.

CCCS of Rochester helps people create a monthly budget to give them an idea of their current financial standing. Rando told us the nonprofit serves people who’ve never created a budget before. The organization also pulls credit reports so people can review their credit history and identify any errors or unusual activity in their report.

Rando told us the primary service CCCS of Rochester offers is a debt management program that focuses on credit card debt and other forms of unsecured debt. Clients who enroll in this service pay a nominal fee, which can be up to $40 per month. CCCS of Rochester provides debt management services in Alabama, Florida, Georgia, Iowa, New York, North Carolina, North Dakota, Ohio, Massachusetts, Minnesota, and Tennessee.

“We review all the different types of debt somebody has so we can really get a sense of what they’re coming to us with,” Rando told us. “People can struggle to make payments on their credit cards when they have interest rates that are really high. They’re also dealing with increases in the prices of groceries, rent, and every other expense you can think of, but our debt management plan can be an option clients can use to make payments more manageable.”

CCCS of Rochester can take all your debts and combine them so you only have to make one payment each month, which can also include any fees a client owes CCCS of Rochester for its services. Rando told us that it can take about three to five years for people to repay all their debt, though that timeline can vary according to the amount of debt a person has. Clients who want to get out of debt more quickly have the option to make extra payments.

CCCS of Rochester serves clients throughout the year, but its busiest time is January through May. Rando told us that people often find it difficult to pay off credit card debt from holiday spending at the beginning of a year. People can turn to CCCS of Rochester for support when those bills come due.

“Throughout the year, we’re here for our community members,” Rando told us. “We’ve been starting to see more younger folks come to us for help lately. Our typical client is usually someone who’s in their late 40s or early 50s, but now we’re having more people in their 20s and early 30s reach out to us for assistance because they’re really struggling.” 

The last thing you need when you’re trying to dig your way out of debt is to take on new and costly expenses, and CCCS of Rochester understands that. The nonprofit offers its initial counseling services for free. 

The nonprofit reviews a new client’s financial circumstances and determines which of its services will best address their needs. Rando told us CCCS of Rochester partners with other organizations to help consumers with their finances, and it’ll refer clients to use its partner services when necessary.

CCCS of Rochester educates clients so they can understand financial language and how a product’s terms can impact their overall finances. Rando told us that many people who come to the nonprofit have credit cards with unfavorable interest rates.

“A lot of people have no idea what an interest rate number means and how it plays a part in how much longer they’re going to be paying on a particular debt,” Rando told us. “So we educate them on interest rates. If they enroll in a debt management plan, creditors will reduce their interest rate so they can have more of their monthly payment going toward their balance versus just their interest rate.”

People can struggle to pay their debt when they experience a loss of income, a medical hardship, or problems in a personal relationship. 

Rando told us that, regardless of why someone is in debt, they may hesitate to seek help because they think they’ll get scolded. But CCCS of Rochester aims to support its clients and let them know they’re not alone.

“Debt can cause people a lot of stress, but we provide them with options and give them hope,” Rando told us. “We’re not here to tell people that they have to do anything, so they can make whatever choice is best for them and their family. A number of people come out of credit consultations and hug their counselors because they’re relieved to start living their life and being able to afford things they need like groceries.”

To improve my car maintenance skills, I once watched as a friend changed the oil in their pickup truck. The process looked easy enough, albeit a bit messy. But I ran into a few roadblocks when I tried to change my car oil.

Applying what you’ve learned to shifting situations can be difficult. CCCS of Rochester helps people learn how to read credit reports by reviewing their report with them. Learning to read a credit report may take a little time, but the skill may prove to be valuable to you for much of your adult life.

“We really personalize that review by educating clients on the various parts of their report and letting them know what the different codes on it mean,” Rando told us. “We also let them know what goes into a credit score and what can impact it in a positive or negative way. When people take an active role in learning about their credit, it can really help them prepare for the future.”

Financial planning can take time, but developing a plan and sticking to it can save you money. Rando told us people should regularly review their budgets to ensure they’re putting enough money aside to reach their goals. 

Those who create a realistic budget in January can avoid having to go into debt to pay for expenses when the end of the year rolls around.  

“When people start to see signs that their finances are getting tight, that’s the perfect time to reach out to us to see what your options are,” Rando told us. “People have more choices available to them if they reach out before they start falling behind on their monthly payments.”