|
Dear Debt Adviser,
I went to a local United Way agency for credit counseling and they determined my income is way too low for them to
help me with a debt plan. They could not help me.
Am I out of options? Should I try another agency or will nobody be able to help me?
-- Steph
Dear Steph,
The person you spoke with at the agency falls into one of two categories: lazy or incompetent. While you can still
be helped, he or she may be beyond help!
You may have too little income to qualify for a debt management plan, but people at the agency should
have helped you in several other ways.
First, they should have discussed your financial goals to place your situation and possible solutions
in the proper context.
Second, they should have helped you better understand the size and causes of your current financial
situation.
Next, they should have provided you with a workable budget so you could begin to save for emergencies
and properly assess your ability to pay back lenders.
Finally, they should have worked with you to create an action plan to better your circumstances.
None of this help requires that you have a minimum level of income.
I don't have your specific financial information in front of me, but as a former credit counselor, I
feel obligated to help you as much as I can in this column.
Many life events cause people to have financial problems. Such events include a job loss, divorce, mortgage
reset or serious medical illness. Or perhaps you just made some bad financial decisions.
Whatever the cause, you (and many others) may from time to time have trouble paying your mortgage, car
loan or other bills.
But you can turn those problems around. For starters, determine how far your current income goes and
what needs to be done to bring your expenses and income in line. Then, begin to save.
In the long run, aim for regular saving. Savings will reduce your dependence on borrowing and enable you
to withstand life's bumps going forward. To save more, you may need to make some changes in the way you live.
Filing for bankruptcy may be in your future if you have no better alternatives. But, even if you file for
bankruptcy, it may not help if your basic living expenses exceed your income. A good spending plan or budget that includes
your debt repayment will help clarify whether bankruptcy will work for you.
I want you to contact an agency that is a member of the Association
of Independent Consumer Credit Counseling Agencies or the
National Foundation for Credit Counseling to get the specific help you deserve.
Let the counselor know you had a bad experience the first time you went to a counseling agency. Tell your
counselor what you are expecting to receive from your counseling session upfront -- specifically, a workable budget and
an action plan.
If the agency you went to was a member of one of the above organizations, call and speak to the executive
director or president. An agency executive needs to hear from you so the agency can make changes on its own.
Finally, call or write your United Way and let them know your experience with their agency. United
Way-affiliated organizations are good organizations, and the United Way would want to know if one of its agencies was
not living up to proper standards.
|
