National Foundation For Credit Counseling

The National Foundation for Credit Counseling stands for the NFCC

The National Foundation for Credit Counseling is a non-profit network of credit counseling agencies for consumers, founded in 1951 to encourage responsible financial behavior among Americans.

The NFCC has developed a range of tools and training to enable its member organizations to offer high-quality financial education to millions of Americans.

Every two years, the NFCC renews and validates counselor certifications at its member organizations. This program provides clients with high-quality financial data that will enable them to make informed decisions about their money.

The NFCC’s member organizations primarily deal with people who have debt problems in different forms. They can be reached by phone or online. The main services offered by NFCC-sanctioned organizations include counseling on credit card debt, housing, student loans, credit reports, and bankruptcy.

The Beginnings of Credit Counseling

History doesn’t record the first time someone became indebted. It could have occurred when a caveman needed a wheel but didn’t have enough animal skins to pay.

History may have been the root cause of the debt avalanche, which has left many Americans homeless. Frank McNamara was a New York City businessman who dined at Major’s Cabin Grill back in 1949. As he reached into his breast pocket, he realized he had forgotten his wallet. McNamara’s wife was the one to pay, as he imagined scrubbing dishes in his head. McNamara saw a lightbulb.

You must have another way to pay.

He created the Diners Club card, the first credit card in the world, one year later. One year later, the NFCC was established, which is the first non-profit credit counseling organization.

Coincidence? It’s rare.

In 2017, the US saw a record high in consumer debt at $12.96 trillion. This is not solely due to credit cards. However, McNamara’s 2-inch by 3-3/8-inch plastic rectangles give customers more power. This power can be hard to manage. Since 1951, the NFCC has done this for millions of people.

The industry standard-setter is the National Foundation for Credit Counseling (NFCC)

In the early years, hundreds of credit counseling agencies independently sprung up. The NFCC created rules to prevent customers already stressed from exacerbating their problems.

An NFCC accredited credit counseling firm adheres to the highest ethical standards. The company’s counselors have completed branded training programs. They can learn a lot more about the thinking of debtors.

What is Credit Counseling?

Credit counseling is an educational service that gives customers an objective view of their finances and helps them to identify the root cause of financial problems. It also recommends ways to get rid of all family debt.

Credit counselors gather information about income and expenses to help create a budget. You can also get advice on the best ways to reduce debt, such as debt negotiation, debt consolidation, and debt management programs.

The National Foundation for Credit Counseling conducts annual consumer financial literacy surveys.

Every year, the NFCC conducts a Consumer Financial Literacy survey to monitor consumer sentiment. A 2017 survey found that 80% of Americans are worried about their finances and appreciate guidance and solutions for common financial problems. A majority of polled respondents don’t have a budget.

According to the 2017 survey:

  • 39% of families have credit card debt month-to-month. This is an increase of 6% over the two previous years.
  • 22% of Americans pay late on their bills
  • Half of the respondents believe they have enough money saved for retirement. However, 27% of Americans don’t save for retirement.
  • About 10% of Americans are currently repaying school debts owed to them or their children.
  • 32% of Americans cannot save money for a rainy day.

National Foundation for Credit Counseling (NFCC) offers free credit counseling

Over 3 million customers turn to NFCC members each year for assistance. The offices can be found in all 50 states as well as Puerto Rico. A counselor can help customers with financial problems. They will create a budget and a repayment plan.

The total student loan debt is $1.5 trillion. Counselors at the NFCC help consumers choose from a range of repayment options.

Counselors can help with financial problems such as bankruptcy, mortgages, car loans, and other financial matters. The Council on Accreditation accredits counselors.

Is ConsolidationNow a member of the NFCC?

ConsolidationNow is a proud member of the NFCC, and all our credit counselors have received NFCC training. One factor you should consider when choosing a credit counseling agency is whether it is a member of The National Federation of Credit Counselors.

National Protect Your Identity Week 

Members also work with community-based social services organizations. They are the ones behind programs like National Protect Your Identity Week. During this annual campaign, consumers are taught about identity theft and recovering if they become a victim. Customers can also bring sensitive papers for destruction by NFCC members.

Get your financial focus sharper

Sharpen Your Financial Focus was launched by the National Foundation for Credit Counseling in 2013. The three-step process includes an online financial self-assessment, a one-to-one financial review with a credit counselor, and an education program tailored to each client’s individual needs.

In the first year, nearly 31,000 people joined. There are many success stories, but the NFCC needs concrete statistics to measure the impact. A study on credit counseling was conducted.

It asked Ohio State University academics for a review of the Sharpen program. Their research answers the question, “Does credit counseling work?” Credit counseling clients saw a decrease in revolving debt of $3,600 over the 18 months. This was more than the 36,000 seen in the comparison group.

Nearly 70% of Sharpen customers claim that Sharpen helped them manage their money better, increase their financial confidence, and pay more debts.

Susan Keating, President of the NFCC, stated that “The Ohio State University Study Team has provided the most convincing evidence to show that nonprofit financial education drives specific improvements that improve financial skills.”

No one could have foreseen how debt would become part of American life when Frank McNamara went out to dinner without his wallet. However, NFCC members are there to help consumers get out as long as they become involved.

 

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debt management plan
nfcc member agency
credit score
financial health
united state
nfcc certified
small business
certified counselors
long term

 

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