Credit counseling requests rise

By Robert Barron, Staff Writer

December 27, 2008 11:45 pm

— Even though Enid seems in better financial condition than many other parts of the nation, credit counseling requests have spiked in recent weeks.
“Our call volume has gone up significantly. The most common problems — there are two — people still have credit card debt and also foreclosures,” said Jennifer Wallis, vice president of Consumer Credit Counseling of Enid.
Consumer Credit Counseling offers free foreclosure prevention counseling. Wallis said people have been calling because they are behind on their mortgages. She said this area is better off than the East and West coats, largely because home prices are lower. However, she said, there still is a significant number of people falling behind on their mortgages.
“A mortgage is probably the largest payment you make, and if you get two or three months behind it is impossible to come up with that amount,” she said.
The primary reason people fall behind on mortgages is joblessness, she said, and also the cost of living has increased. Wallis is grateful the price of gasoline has come down, because she was receiving calls about that. As prices increase, she said, it becomes harder to make ends meet without a financial plan.
Credit cards remain a problem. Wallis said credit card companies are changing their rules, and some people fine their interest rates rising and minimum payments going up, whereas before they were manageable.
She said people often are drawn to rent-to-own businesses when times are hard, and she urged people who do to make sure they understand the total cost involved.
“The rent-to-own mentality gets us in trouble. Rather than saving over time, people want it now,” she said.
Wallis said it is becoming more difficult to prevent people from being taken advantage of, and consumers need to be aware of terms of any agreement they sign.
People should follow a couple of rules when having financial problems, she said. First, stop borrowing or charging on credit cards, which makes the problems worse. Then, add up the amount you owe and develop a plan to pay it back. There are a number of agencies like Consumer Credit Counseling that will assist people.
“About 95 percent of the time we can help consumers avoid foreclosure. The key is to know where to turn for help,” she said.