Credit Counseling Centers of Oklahoma (CCCO) is offering financial counseling in Pryor.

Julie Rice, consumer credit counselor, advised her first Mayes County clients June 16 at RCB Bank MidAmerica.

Mayes County United Way is sponsoring the credit counseling program with CCCO for a six-month trial period. Rice said the United Way is paying the “seed money,” covering her wages and travel expenses. If the trial program is successful, CCCO plans to hire a full time counselor for the Pryor area.

RCB Bank is providing the office space for the trial period, which is in its second week. Rice said the administrative office in Tulsa schedules appointments in Pryor on Tuesdays from 9 a.m. to 6 p.m.

Rice said the appointments are free and usually last an hour. She can take up to five appointments every Tuesday at Pryor

“We try to protect the confidentiality of our clients,” Rice said.

CCCO assists individuals and families with budgeting and financial counseling. The company offers a debt management program for credit card and medical bills. Rice said the program can be used for some accounts that have been referred to a collection agency.

The greater part of CCCO clients are struggling with their finances because of unemployment or under employment. Clients suffering from under employment are those who have lost a portion of their income. In these cases, the people are no longer getting overtime or they are on furloughs. A number of struggling companies are using furloughs, when employees are forced to take unpaid time off to keep their jobs.

The second greatest problem CCCO encounters is clients who have lost half their income through a divorce. Next on the list is medical expenses.

Rice said the fourth issue is poor money management. In this case people have adequate money, but do not spend it wisely.

Excessive spending is a fifth factor in financial problems.

CCCO is approved for mortgage counseling through the U.S. Department of Housing and Urban Development (HUD).

Rice said she has seen a number of people who are getting behind in their house payments. She said many of these clients are close to default.

Some consumers have taken a reduction in income and are living off credit cards.

Clients are welcome to set up appointments for free counseling.

CCCO’s debt management program, which costs $25 per month, is strictly for unsecured debts.

Rice said if the credit card is in two names, both parties have to sign up for the program.

When consumers sign up for the program, all their credit card debt must go on the program.

“There is no typical client,” said Rice.

She said people who need financial help come from all educational and income levels and all ethnic backgrounds. Rice said CCCO counsels people from ages 18 to 80.

Rice said there has been an increase in senior citizens coming for counseling. She said it was hard at first for her to see elderly people coming who needed help.

“This could be my mother,” she said.

Rice said some people who are in debt turn to debt settlement companies. She described this choice as “discouraging to us.”

Rice said most settlement companies have large fees up front and encourage consumers to have no contact with their creditors. The settlement fees must be paid up front before payments are sent to creditors.

“You end up owing more,” said Rice.

Rice said with the CCCO debt management program, the consumer knows up front what CCCO charges and what they will pay their

creditors.

“We have a monthly fee,” said Rice. “We take our fees as we go along,”

Rice said the CCCO debt management program is not a contract. It is an agreement that can be cancelled anytime.

The debt program takes the full balance consumers owe and makes payments on that balance. The program does not pay the amount for which the consumer could settle.

CCCO sends the payment proposals to the client’s credit card companies. The companies have 10 days to respond before CCCO will begin the

payments.

By law, Rice said consumers cannot have a payout of more than 60 months on their credit card debt. She said most credit card companies are willing to take 2 to 3 percent of the balanced owed as a monthly payment.

The debt management program calculates the payments. The consumer pays CCCO, who in turn pays the creditor. Payments can be made in a money order, a cashier’s check, or an online bill pay.

The consumer can pay either once or twice per month. There is no penalty to pay a debt off early.

If a consumer misses two monthly payments, he or she will be taken off the program and not allowed to sign up for five years.

“If they’re going to do the debt management program, they need to commit to doing it,” said Rice.

CCCO is an educational, not-for-profit agency that offers money management and credit education through confidential counseling and community workshops.

CCCO has offices in Claremore, Sapulpa, Muskogee, Broken Arrow and Tahlequah. The administrative office is in Tulsa. Call (800)324-5611 for an appointment.