Financial Services _Çô Client Services RFC121 Lecture Notes - Lecture 6: Credit Counseling, Personal Bankruptcy
5 Jun 2018
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Learning Objective # 4
Evaluate various private and government sources that assist consumers
with debt problems.
Consumer Credit Counseling Service
▪ If you are having problems paying your bills you can;
▪ contact your creditors and work out a repayment plan
▪ go to a non-profit financial counseling program for assistance
▪ Credit counseling activities include;
▪ aiding families by helping them manage their money, setup a realistic
budget and plan for expenditures
▪ helping people to avoid future debt problems
Learning Objective # 5
Assess the choices in declaring personal bankruptcy.
Declaring Personal Bankruptcy
▪ Increasing number of bankruptcy filers are well-educated, middle-class
baby boomers with an overwhelming level of credit card debt
▪ Usually between 40-44 years of age
▪ Increasingly likely to be female
▪ Between 1990 to 2007 consumer bankruptcies increased 86.5%
Fending off Bankruptcy
▪ Consolidation Loans
▪ Advantages are single interest rate on all your debts and ability to
extend them to allow you to make smaller payments
▪ Disadvantages are higher interest rates as you represent a higher risk
to the lender
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