How may I go about speaking to a housing counselor?
Contact us by phone, email, or in person to schedule a meeting with a counselor.
What is the cost for housing counseling?
Currently our housing counseling services are offered free of charge.
Do you offer a first-time homebuyer seminar?
We periodically host seminars from community representatives targeted toward first-time homebuyers. Be sure to check our events for future announcements.
Should I buy or rent?
Everyone’s situation is different. There are many factors that can determine whether renting or buying is the better option, such as interest rates, rental rates, and how long you plan on staying in the home. A counselor will be more than happy to sit down with you and help you evaluate your options.
What credit score do I need to get a good rate on a mortgage?
A score of 680 or above is usually considered prime lending and will usually get the lower rates. Lenders will have different criteria, so check around for the best rates.
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Who qualifies for free resumé writing assistance?
This program is designed for those earning a low to moderate income, including those who may be unemployed, underemployed or facing a layoff. If you are currently earning below $36,000, we encourage you to take advantage of this free resource.
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How do I know if I need credit counseling?
Credit counseling is available to assist consumers that feel the strain of debt on their monthly budget. Ask yourself these questions:
- Am I unable to pay more than just the minimum balance on credit card, loan and other unsecured debt balances?
- Have I risked a late payment within the last six months?
- Would a future repair bill of $300 or more cause me to fall behind on my bills?
- Am I living paycheck to paycheck or going nowhere?
Credit counselors can frequently provide tips, strategies and other tools to help you escape from a seemingly no-win situation.
How do I choose the right credit counseling agency?
Reputable credit counseling organizations offer free public seminars, workshops and educational materials. They will be willing to assist regardless of your ability to pay. Any fees should be reasonable and listed clearly in writing. Check to see that the agency has maintained a positive rating with their Better Business Bureau. Most importantly, if you do not feel right after meeting with a credit counselor, then consider it a red flag and seek help with a different agency.
What questions should I ask when seeking the best credit counseling agency?
- What services do you offer? Avoid organizations that push a debt management plan as your only option before they spend a significant amount of time analyzing your financial situation.
- Are educational materials available for free? Fiscal Progress offers free consultations and has a number of free resources available.
- What are your fees? Are there set-up and/or monthly fees? Can you help me if I cannot afford to pay? Our services are free or low-cost. Any fees will be listed up-front in writing. If you cannot afford a fee, ask about how you may obtain a scholarship or fee waiver.
- Will I have a formal agreement or contract with you? Read everything before signing and make sure promises are in writing.
- Are you licensed to offer your services in my state? Every state has its own qualifications and laws. Many also require a license.
- What are the qualifications of your counselors? Are they accredited or certified by an outside organization? Fiscal Progress employs Accredited Credit Counselors that receive certification through the Association for Financial Counseling and Planning Education (www.afcpe.org).
- What assurances do I have that information about me will be kept confidential and secure? Fiscal Progress employees maintain the confidentiality of all clients. Any information you provide to us will only be used to help better serve you and will not be shared with any outside individual or entity without your authorization. Unless you authorize a person to speak on your behalf, we will not be able to discuss any confidential information with them.
- How are your employees compensated? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? Fiscal Progress employees are paid a salary and do not receive commissions or bonuses related to the outcome of the counseling session.
What is a DMP?
A Debt Management Plan is sometimes recommended to clients whose ability to pay their debt is in jeopardy. A DMP alone is not credit counseling, and DMPs are not for everyone. Consider signing on for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.
Is a DMP right for me?
Consider asking these questions:
- Is a DMP the only option you can give me? Will you provide me with ongoing budgeting advice, regardless of whether I enroll in a DMP? Fiscal Progress offers a variety of services to help you with a number of financial situations. We examine all possibilities and advise what your best options could be.
- How does your DMP work? How will you make sure that all my creditors will be paid by the applicable due dates and in the correct billing cycle? Fiscal Progress does not provide a DMP at this time. We will however help refer you to a reputable agency that can provide a DMP—preferably one that you may visit in person.
- How is the amount of my payment determined? What if the amount is more than I can afford? Don’t sign up for a DMP if you can’t afford the monthly payment. A certified credit counselor should not refer you to a DMP if you cannot reasonably afford the payment. Make sure your credit counselor helps you to establish a positive monthly budget.
- How often can I get status reports on my accounts? Can I get access to my accounts online or by phone? Make sure the organization you sign up with can provide regular, detailed statements about your account.
- Can you get my creditors to lower or eliminate interest and finance charges, or waive late fees? If yes, contact your creditors to verify this, and ask them how long you have to be on the plan before the benefits kick in. Keep in mind that this does not typically mean that past interest and fees are eliminated. Instead, creditors can voluntarily cease charging new fees and may reduce interest from the time that DMP benefits begin.
- Can you get my creditors to re-age my accounts? Creditors may offer to re-age an account through a DMP as a part of the benefits it provides. This does not eliminate past delinquencies from your credit file, rather it allows you to start fresh with a new monthly payment without having to come up with extra money to pay for mounting late or over-the-limit fees. Some creditors restrict the number of times your account is eligible to be re-aged to twice in a five year period.
- What debts cannot be included in a DMP? Back taxes, child support payments and judgments cannot be included in a DMP. Also, secured debts such as a mortgage and car note are generally omitted. Rarely would including a student loan in a DMP be recommended—usually the interest rate is already very low, a deferment or forbearance may work better, and DMPs are not designed to get a better rate for student loans.
- Do I have to make any payments to my creditors before they will accept the proposed payment plan? Many creditors require 1 to 3 scheduled payments before they will extend program benefits. Feel free to contact your creditors to confirm eligibility of benefits before initiating a payment plan through a credit counseling agency.
- How will enrolling in a DMP affect my credit? Enrolling in a DMP does not directly affect your credit score. Some creditors may choose to show your participation in a DMP on your credit profile. In addition, changes to the status of your accounts and a reduction in payments through a DMP could reduce your credit score for several months or longer. The goal of a DMP should be to help you avoid default and rebuild your credit score over time.
What is the FACT Act and what does it mean for me?
The Fair and Accurate Credit Transactions Act protects consumers by ensuring that they can readily obtain their credit report once a year free of charge. All consumers are encouraged to take advantage of this new law so that they can regularly check for inaccuracies and to combat identity theft.
How can I get a free copy of my credit report?
Call toll-free (877) 322-8228, order it online at www.annualcreditreport.com, or complete the Credit Report Request Form and mail it to Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281. This is a free, unconditional service mandated by Congress which does not require subscription to a credit monitoring service. All consumers are entitled to one free copy annually.
What is Credit Repair?
Some companies may offer to help you clean-up your credit report for a fee. Many frequently make aggressive promises to eliminate negative information. Remember that credit bureaus do not remove negative information from your credit profile when it is deemed to be accurate. You can typically do anything a credit repair company does for free by writing to the credit bureaus, or by initiating an online dispute. If you do decide to work with a credit repair company, make sure that they complete the promised task before paying for their services. Any company that asks for payment before providing credit repair services may be in violation of federal and state law. Fiscal Progress does provide information on how you can repair your own credit report free of charge. Feel free to request information or to speak with an Accredited Credit Counselor for more information.
What is debt settlement?
For a select few consumers who are woefully behind on debt payments, a settlement with their creditor may be a way to avoid a judgment. Fiscal Progress rarely encourages a settlement, but will provide tips about how you could approach settling with your creditors. Debt settlement companies are almost always a bad idea. The success rate of clients working with many debt settlement companies is frequently less than 5%. Most debt settlement companies charge significant up-front fees, and a sizable percentage of what you “save” through the settlement. Most importantly, payments you make to a debt settlement company sit in a trust account until enough money has amassed to initiate a settlement. You will get no credit for these payments on your credit report until a debt is actually settled and paid. You can frequently do better on your own. If you are only a few months behind, debt settlement is almost never a good option as it can cause your credit score to plunge.
What companies should I avoid?
Warning signs:
- guarantee they can remove your unsecured debt
- promise that unsecured debts can be paid off with pennies on the dollar
- claim that using their system will let you avoid bankruptcy
- require substantial monthly service fees
- demand payment of a percentage of savings
- tell you to stop making payments to or communicating with your creditors
- claim that creditors never sue consumers for non-payment of unsecured debt
- promise that using their system will have no negative impact on your credit report
- claim that they can remove accurate negative information from your credit report
How can I verify if an organization is reputable?
Check it out with your state Attorney General, local consumer protection agency and the Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Also, ask your state Attorney General if the company is required to be licensed in your state and, if so, whether it is.
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Who qualifies for free tax assistance?
Free tax assistance through VITA is provided for people with income at or below $37,263, and for people age 60 and older. All others may also receive free tax preparation through the AARP Tax Aide program.
What is VITA?
The VITA Program offers free tax help to low- to moderate-income ($37,263 and below) people who cannot prepare their own tax returns. Volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country.
Where can I find the nearest VITA site to me?
VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site in North Carolina, call 877-NC4-EITC. For VITA sites outside of North Carolina, call 1-800-829-1040.
What is TCE?
The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.
As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 9,000 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those age 60 and older.
Where can I find the nearest TCE site to me?
For more information on TCE call 1-800-829-1040. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669.
What items do I need to bring to the VITA/TCE site to have my tax return prepared?
- Must bring photo identification
- Social Security Cards for you, your spouse and dependents
- Birth Dates for primary, secondary and dependents on the tax return
- Current year’s tax package if you received one
- Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
- Interest and dividend statements from banks (Forms 1099)
- A copy of last year’s Federal and State returns if available
- Bank Routing Numbers and Account Numbers for Direct Deposit
- Other relevant information about income and expenses
- Total Paid for Day Care
- Day Care providers Identifying number
- To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.
What is the Advance EITC?
The advance EITC allows those taxpayers who expect to qualify for the Earned Income Tax Credit (EITC) and have at least one qualifying child to receive part of the credit in each paycheck during the year the taxpayer qualifies for the credit. Employees can find out if they qualify by answering the questions on form W-5 and then giving the completed form to their employers, who are required to file the form if the employee qualifies. Employers then add extra money to each paycheck. The Advance EITC is only a partial refund of the full EITC amount tax filers may qualify for, so they will need to file for the balance of their EITC when they file their federal income taxes.
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