Latest Posts
Home > Debt Relief Industry > Credit Counseling Requests Way Down. Funding Cut.

Credit Counseling Requests Way Down. Funding Cut.

A couple of articles today painted an interesting picture of the challenges credit counselors are facing and the declining demand for their services.

According to the National Foundation for Credit Counseling (NFCC), the number of consumers seeking help has dropped twenty percent from 2009 to 2010.

This has NFCC scratching their head especially when the CARD Act required lenders to put the toll-free number on bank statements for people to call NFCC.

“Every month tens of millions of credit card statements are mailed to consumers as a result of the CARD Act and every statement is required to display a toll free number directing consumers to non profit credit counseling agencies for help managing their finances,” said the NFCC.

The result, said NFCC, has been that the NFCC toll-free line has been listed on 500 million statements since the implementation date of Feb. 22, 2010, but “only 150,000 people have reached out for help with their financial situation.” – Source

The government has cut HUD funding that flowed to credit counseling groups by $88 million and creditors are cutting back on funding for debt management services as well.

So the vicious circle spirals on and the question of why continues to puzzle. “It’s the nut we would like to crack,” says Gail Cunningham, NFCC’s vice president of public relations. Not just the rollback in institutional support for credit counseling, the fact that there are tangibly fewer consumers actually seeking help is likewise inexplicable.

Cunningham notes a similar decline in the number of debtors who reached out to credit counselors during the worst days following the sub-prime crisis. As to why, she surmises compellingly that “an awful malaise sets in among consumers who simply get tired of trying. Today, there is also the feeling among people that, after struggling so hard in the past few years, they are beyond help.” – Source

I must confess, I’m a bit chocked they can’t figure this out. It’s a topic we’ve been discussing here in detail with a clear explanation why the demand for all debt relief services is diminishing.

Credit Counseling Requests Way Down. Funding Cut.
Get Out of Debt Guy – Twitter, G+, Facebook

I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

Credit Counseling Requests Way Down. Funding Cut. by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Knows how it works

    Steve, I agree about them scratching their heads they should now by now, but after reading yesterdays article Is The Creditor Treated Fairly When People Can’t Pay Their Bills? Are Consumers Stupid When It Comes to Their Debt?   

    The author really touched on some excellant points on how the consumer benefited from the relationship and how they are “willy nilly” in their response to debt relief I think its something that all of in the debt relief industry know but alot times dont express it. 

    I feel this is the one of the major factors also contributing to the decline.

  • Knows how it works

    Steve, I agree about them scratching their heads they should now by now, but after reading yesterdays article Is The Creditor Treated Fairly When People Can’t Pay Their Bills? Are Consumers Stupid When It Comes to Their Debt?   

    The author really touched on some excellant points on how the consumer benefited from the relationship and how they are “willy nilly” in their response to debt relief I think its something that all of in the debt relief industry know but alot times dont express it. 

    I feel this is the one of the major factors also contributing to the decline.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.