FinancialHope Counseling and Education

Do you have a written spending plan or budget?

Yes
No
I would like to start one

Vote Results

Site Search

Why FINANCIALHOPE


A MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT:

Perhaps the tag line says it all—“Knowing the difference makes all the difference.” It is easy to get the idea that all debt counseling agencies are the same. Then you hear about the college student on Pell grants who signed up with a settlement house in Florida which used up her first three months deposits and settled very little at a loss of thousands of dollars; or the phone center which ONLY distributed funds to creditors who contributed to them; or the agency which has high fees and doesn’t send regular statements to it’s clients; or the agency which has no education program to help people cope with money issues beyond debts; or the agency with no local board of volunteers who held them accountable; or the agency not accredited by an independent third party. The list goes on and on. When you see all this you become aware—there really is a difference! Our challenge is to help people with financial problems become aware of the pitfalls in selecting a less than comprehensive agency. If you are reading this annual report, you are probably somewhat familiar with our 40-plus year history in the greater Fort Wayne area. We welcome your help in increasing awareness for people in financial distress in the selection of a quality and reputable service. There has never been a time when FINANCIALHOPE of Northeastern Indiana has seen more people with a greater variety of services for a greater variety of problems than in 2005! The clients, staff and Board thank our creditor partners and friends throughout the community and nation to make it all possible. Sincerely, William Warriner, Chairman & Joseph J. Schenkel, President

People often ask, “How can a person tell the good debt counseling services from the others we read about in the paper, see on television, hear on the radio, or find on the Internet? Good question! Here are some questions to ask and things to look for:

Is the agency governed by a local board of directors? The Board of Directors of FINANCIALHOPE of Northeastern Indiana is made up entirely of volunteers from the local community, representing both non-profit and for-profit organizations. How much does your service cost? The counseling service at FINANCIALHOPE is free. A NFCC certified counselor will meet with you privately to analyze your income, living expenses, and debts. Together, we will discuss spending and debt reduction strategies for you. Reverse mortgage, pre-purchase and mortgage delinquency counseling is free. Educational workshops are reasonably priced. Many other credit-counseling agencies do not even offer educational workshops. The cost of our Debt Management Program, if it is deemed appropriate for the client, is reasonable. There is a one time $50.00 set up fee payable in one separate payment. The set up fee also entitles me to free participation in all FINANCIALHOPE educational programs. There is also a monthly debt management fee. For total creditor payments of $100 or below there is a 15% monthly fee, thereafter graded to a maximum monthly fee of $50. Other agencies charge set-up fees in the hundreds of dollars and have hefty cancellation penalties. FINANCIALHOPE of Northeastern Indiana does not charge cancellation fees. Is the service accredited? FINANCIALHOPE of Northeastern Indiana has been serving the community for over 40 years. FINANCIALHOPE of Northeastern Indiana was the FIRST freestanding FINANCIALHOPE agency accredited in the nation (1993). We just went through our 4th accreditation with the Counsel on Accreditation of New York, NY. Many large national social networks are accredited by the COA (i.e., Lutheran Social Services, Catholic Charities, and many others). You say – what is the purpose of accreditation? Simply put, it is a guarantee by an independent third party that we are who we say we are. Are the counselors certified? All of our counselors are certified by our national organization – the National Foundation for Credit Counseling – which has 115 agencies at nearly 1000 locations nationwide. Is the agency audited and insured? We undergo a thorough audit by a local CPA firm and have insurance and bonding assuring control of risk management required by accreditation. Are the counseling sessions complete? Every person gets a free counseling session and a written action plan on how to proceed. Incidentally, only 18% of people interviewed enter a formal debt repayment program which means that 82% of the people get an action plan on how to handle their problems on their own. Does the agency offer educational programs? Does the agency you are considering offer workshops on budgeting, home ownership, and basic financial literacy? Ask for a workshop schedule if you are shopping around. FINANCIALHOPE offers a variety of low cost personal finance workshops that promote the sound use of credit. Check out our website www.financialhope.org/financial_workshops.aspx to see the schedule of classes we are currently offering. For further information about working with credit counseling agencies, please click on the following Federal Trade Commission (FTC) link: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm