“Dear Steve,
i’m a single disabled sick mom making only 1842 monthly on disability and in 2 yrs. i lose my son’s portion which will bring me down to an income of about 1200; i have a house with an 8.5 interest rate and about 28,000 in credit debt and some medical bills and ongoing health issues; i spoke with clearpoint today and they say that if i pay them about 696 monthly that they will reduce my rate on my cards and i could be debt free in approximately 4 years or so; they also want me to file a home refinance modification application to c if they could get my rate reduced; do u trust clearpoint and can they realistically get my high level of credit card debt down to nothing in only 4 yrs. so i could focus on my mortgage; thx.
do u trust clearpoint to realistically get u out of debt?
Nancy”
Dear Nancy,
ClearPoint is a credit counseling organization.
My concern is not about the structure or existence of ClearPoint Credit Counseling Solutions but if an extended repayment plan is appropriate fro your situation at all.
Tell me more about your house please. What state and county do you live in and how much is your house worth? Also, how much do you owe on the property.
Considering the fact your income will be reduced by 35 percent in two years and the cost of living will climb at the same time, I am very concerned that it is even realistic to expect you to be able to make it once your income drops.
Let’s say ClearPoint managed to get you on a debt management plan where your monthly payment was about $696 a month. In two years that’s going to be almost 60 percent your income.
Unless you have other sources of income I really can’t see this as a long term plan for success and debt elimination. It’s looking more like a recipe for disaster.
Please post your responses and follow-up messages to me on this in the comments section below.

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Hi Nancy,
Did the counselor talk to you at all about seeking legal advice? Since you are on SSI your income is not garnishable, but since you are a homeowner a creditor could put a lien against the property which would have to be satisfied if you tried to sell it down the road.
Even if you opt for something besides a debt management program to handle the credit and medical debt I would proceed with the mortgage modification help from ClearPoint (or any other approved agency). ClearPoint is a HUD-approved housing counseling agency, so that assistance is provided free of charge thanks to taxpayer dollars, so take advantage of this and also stay in communication with your mortgage lender!
For medical debt, always reach out to the provider (especially if it’s a hospital) for financial aid. I once received a 60% credit and a 2 year repayment plan, just for asking!
Best Wishes,
Thomas Nitzsche, Media Relations
ClearPoint Credit Counseling Solutions
Thanks for stopping by and posting.
I’m in New York State, onondaga county; house is worth about 66,000 and i owe approximately 38,000; thx.; yes, i’m in deep trouble financially besides my bad health trying to make a better life for my son but he may be on his own with finding a house when he is ready.