You may be one of many Americans finding yourself in a difficult financial situation or a state of constant stress related to finances. With debt, interest rates, gas prices, daily necessities and living paycheck to paycheck, you may be trying to live the American Dream only to find yourself waiting for it to begin, particularly if you’re between the ages 20-30. Couple that with recent investigations by the IRS into predatory lending and credit counseling nonprofits and you may be asking where it’s still safe to find reliable resources, programs or advice or even when to begin looking.
Freehold, NJ (PRWEB) June 10, 2006 -- You may be one of many Americans finding yourself in a difficult financial situation or a state of constant stress related to finances. With debt, interest rates, gas prices, daily necessities and living paycheck to paycheck, you may be trying to live the American Dream only to find yourself waiting for it to begin, particularly if you’re between the ages 20-30. Couple that with recent investigations by the IRS into predatory lending and credit counseling nonprofits and you may be asking where it’s still safe to find reliable resources, programs or advice or even when to begin looking.
“Consumers need to act now,” according to Joel Greenburg, President of the NJ-based credit counseling firm Novadebt. “The IRS continues to conduct its audit and revoke the nonprofit status of many credit counseling firms, but the process may take many more months and it may not make things any clearer for individuals to make good choices or find the help they need now.”
Novadebt recommends that consumers should take initiative to research available financial resources and programs at the first sign of financial stress or of unsecured debt getting out of hand. Those anticipating financial hardship or major life milestones in the foreseeable future – including loss of income, medical expenses, buying a new home or having a baby – should also consider now the time to look into available resources to help them plan accordingly. There are even many free guides and resources available if, none of the above circumstances specifically apply but if holding to a budget or putting money away each month feels daunting.
Once you’re ready to look, the next question is where to go and who can be trusted. Greenburg notes that there are many nonprofit counseling agencies that still, in the best interest of the consumer, provide education services first and foremost as well as financial management programs. “Any trustworthy counseling agency should offer materials and assistance on a variety of financial topics recommended to specifically help each individual’s unique situation. Consumers should look for agencies that offer ongoing counseling, financial education and workshops within the community, regardless of whether or not the person enrolls in a payment program such as a Debt Management Program.”
To identify legitimate counseling services and resources, it’s recommended that consumers:
• Avoid telephone or e-mail solicitors that offer credit counseling services, or services with unrealistic promises (e.g., elimination of large debts in two years or less)
• Check to see that agencies are properly licensed or registered with the state (if your state has those requirements) and maintain tax-exempt nonprofit status with the IRS. To check on an agency’s nonprofit status, consumers can visit www.irs.gov/charities and click on “Search for Charities.” Most reliable services are also approved by the Executive Office of US Trustees to provide pre-filing bankruptcy counseling that’s now required by law.
• Consult third-party sources that validate and monitor these services on a regular basis. These include the Association of Independent Consumer Credit Counseling Agencies, the National Foundation of Credit Counselors, and the Better Business Bureau.
• Ask many questions and pay close attention to the types of services and information offered. Trustworthy agencies offer a variety of free and low-cost tools including brochures, workshops, one-on-one counseling, budget planning, financial management and other outreach programs. Topics should also be very specific to your needs and offer multiple options in addition to debt counseling, budget planning or housing counseling.
Novadebt is a nonprofit credit counseling agency that helps those with financial difficulties regain their footing. For more information and free budget consultation, call Novadebt toll-free at: 1-800-772-4557. Certified credit counselors are on call to determine a personal financial plan to suit your unique needs.
Since its inception in 1991, Novadebt helped over 250,000 people to regain their financial footing and repay approximately $340 million to their creditors. Novadebt maintains an average active caseload of approximately 15,000 consumers at any given time. A non-profit, social service agency licensed and bonded by the New Jersey Department of Banking, Novadebt is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the Better Business Bureau. The United States Government recognizes Novadebt as a charitable organization under 501© (3) of the IRS Code. All of the agency’s counselors are certified by the Institute of Personal Finance.
Contact:
Jason Ledder
R&J Public Relations, LLC
973-331-1070
973-331-1077(fax)
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