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Dozens take advantage of volunteers' financial expertise in first of three call-in programs co-sponsored by Beacon Journal
By Betty Lin-Fisher
Beacon Journal business writer
POSTED: 12:52 p.m. EDT, Sep 26, 2008
Seven credit counselors and financial planners fielded many questions from consumers about qualifications for debt-repayment programs and whether their money is safe in banks.
The conversations were part of more than 50 phone calls to the Beacon Journal on Thursday night as the volunteer credit counselors and financial planners participated in the first of three free call-in programs to discuss personal finance.
The program was sponsored by the Beacon Journal, the Consumer Credit Counseling Service and the Financial Planning Association of Northeast Ohio as part of the newspaper's Reclaim the Dream series of reports.
''The headlines have gotten their attention,'' said Ken Robinson, a certified financial planner with Practical Financial Planning in Cleveland. Robinson said several of his calls were from people who wanted to know whether the money they have in their bank accounts is safe with all of the news about the financial markets' turmoil.
The Federal Deposit Insurance Corp. insures deposits at an insured bank, including money in checking, savings accounts, money-market deposit accounts and time deposits, such as certificates of deposit (CDs).
Not covered by the FDIC are stocks, bonds, mutual funds, annuities, U.S. Treasury bills or bonds, even if you purchased them at a bank.
For most accounts, the insurance limit is $100,000. For certain retirement accounts, the limit is $250,000 per owner, per insured bank. More information is available online at http://www.fdic.gov or by calling 877-ASK- FDIC (877-275-3342).
Victor Russell, area manager for the Consumer Credit Counseling Service, took a call from a woman who said she had too much credit card debt and wanted to start saving money. Russell said he gave her some examples of what her payments would look like if she went on a debt-repayment program and encouraged her to save as well.
''We want to make sure it's affordable, but at the same time set aside some savings. She was very relieved and glad she called,'' Russell said.
Russell also took a call from a young father of three who said his old college credit card debt of $14,000 was haunting him, even though he hadn't used the cards in four years. He had not been making payments on the bills and they have now gone to collectors, causing his credit score to suffer. The family wants to buy their first home, but is unable to get financing with the credit problem.
Russell told the caller that he needed to start paying on the debt and work on his credit score. Adding to the difficulty was the father's job as a salesperson on commission, meaning he has difficulty predicting his income.
Russell said people who work on commission need to plan ahead.
''When times are good, you need to sock that money away. Sometimes when times are good, they spend like crazy,'' he said.
Consumers who called about qualifying for debt-repayment programs through the Consumer Credit Counseling Service were told that in many cases, if there is the income to work out payments, the agency can work out a repayment program with lower interest rates with creditors and other fees waived.
Consumers can get a free 11/2-hour counseling session with the Consumer Credit Counseling Service by calling 800-355-2227 for a budget analysis or to discuss debt-repayment programs.
Terri Campanelli, community outreach director for the counseling service, warned several callers about the difference between a nonprofit credit counseling agency, such as Consumer Credit Counseling Agency, and some for-profit debt settlement agencies.
Campanelli took a call from a husband and wife who said they had $95,000 in credit card debt by using their cards to make their house payments and then their income to try to pay on the cards. Their house was worth $280,000 and they had $150,000 in equity, but didn't want to tap into it to pay the credit card debt.
They visited a lawyer to look into bankruptcy, but were told that they had too much equity in their house to avoid losing the equity in a bankruptcy.
Campanelli said she wouldn't recommend folding unsecured credit card debt into a secured fixture, like a house.
Campanelli told the couple they should look into getting into a debt-repayment program.
Andrew J. Maimona, a certified financial planner with M&H Wealth Management in Stow, took a call from a college instructor who had $140,000 in mutual funds that had shrunk in recent years to $111,000. He wondered if he should take $40,000 of that, which is in a money market fund, and put it into stocks.
Maimona asked the caller what type of liquid savings fund he had for emergencies. The caller said $5,000.
Maimona told the caller he needed to take some of the money and put it into a liquid emergency fund — the equivalent of six months' living expenses if he was in a job that was more tenuous and three months if he was in a job that was more secure.
''You need an emergency fund first,'' he said.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
The counselors
The following people volunteered their time during the free call-in credit counseling session:
From the Consumer Credit Counseling Service:
• Terri Campanelli, Community Outreach Director
• Victor L. Russell, regional manager
• Jay Seaton, area president
From the Financial Planning Association of Northeast Ohio:
• Darrell C. Claytor, CFP, Securities America, Twinsburg
• Andrew J. Maimona, CFP, M&H Wealth Management, Stow
• Ken Robinson, CFP, Practical Financial Planning, Cleveland
• Ted Sadar, CFP, Sadar Financial Management, Akron
Other free call-in sessions
The Beacon Journal, in cooperation with experts from the Consumer Credit Counseling Service and members of the Financial Planning Association of Northeast Ohio, will offer two more free counseling seminars by telephone:
• Wednesday, Oct. 22 — 6 to 8 p.m.
• Saturday, Oct. 25 — 10 a.m. to noon
Seven credit counselors and financial planners fielded many questions from consumers about qualifications for debt-repayment programs and whether their money is safe in banks.
The conversations were part of more than 50 phone calls to the Beacon Journal on Thursday night as the volunteer credit counselors and financial planners participated in the first of three free call-in programs to discuss personal finance.
The program was sponsored by the Beacon Journal, the Consumer Credit Counseling Service and the Financial Planning Association of Northeast Ohio as part of the newspaper's Reclaim the Dream series of reports.
''The headlines have gotten their attention,'' said Ken Robinson, a certified financial planner with Practical Financial Planning in Cleveland. Robinson said several of his calls were from people who wanted to know whether the money they have in their bank accounts is safe with all of the news about the financial markets' turmoil.
The Federal Deposit Insurance Corp. insures deposits at an insured bank, including money in checking, savings accounts, money-market deposit accounts and time deposits, such as certificates of deposit (CDs).
Not covered by the FDIC are stocks, bonds, mutual funds, annuities, U.S. Treasury bills or bonds, even if you purchased them at a bank.
For most accounts, the insurance limit is $100,000. For certain retirement accounts, the limit is $250,000 per owner, per insured bank. More information is available online at http://www.fdic.gov or by calling 877-ASK- FDIC (877-275-3342).
Victor Russell, area manager for the Consumer Credit Counseling Service, took a call from a woman who said she had too much credit card debt and wanted to start saving money. Russell said he gave her some examples of what her payments would look like if she went on a debt-repayment program and encouraged her to save as well.
''We want to make sure it's affordable, but at the same time set aside some savings. She was very relieved and glad she called,'' Russell said.
Russell also took a call from a young father of three who said his old college credit card debt of $14,000 was haunting him, even though he hadn't used the cards in four years. He had not been making payments on the bills and they have now gone to collectors, causing his credit score to suffer. The family wants to buy their first home, but is unable to get financing with the credit problem.
Russell told the caller that he needed to start paying on the debt and work on his credit score. Adding to the difficulty was the father's job as a salesperson on commission, meaning he has difficulty predicting his income.
Russell said people who work on commission need to plan ahead.
''When times are good, you need to sock that money away. Sometimes when times are good, they spend like crazy,'' he said.
Consumers who called about qualifying for debt-repayment programs through the Consumer Credit Counseling Service were told that in many cases, if there is the income to work out payments, the agency can work out a repayment program with lower interest rates with creditors and other fees waived.
Consumers can get a free 11/2-hour counseling session with the Consumer Credit Counseling Service by calling 800-355-2227 for a budget analysis or to discuss debt-repayment programs.
Terri Campanelli, community outreach director for the counseling service, warned several callers about the difference between a nonprofit credit counseling agency, such as Consumer Credit Counseling Agency, and some for-profit debt settlement agencies.
Campanelli took a call from a husband and wife who said they had $95,000 in credit card debt by using their cards to make their house payments and then their income to try to pay on the cards. Their house was worth $280,000 and they had $150,000 in equity, but didn't want to tap into it to pay the credit card debt.
They visited a lawyer to look into bankruptcy, but were told that they had too much equity in their house to avoid losing the equity in a bankruptcy.
Campanelli said she wouldn't recommend folding unsecured credit card debt into a secured fixture, like a house.
Campanelli told the couple they should look into getting into a debt-repayment program.
Andrew J. Maimona, a certified financial planner with M&H Wealth Management in Stow, took a call from a college instructor who had $140,000 in mutual funds that had shrunk in recent years to $111,000. He wondered if he should take $40,000 of that, which is in a money market fund, and put it into stocks.
Maimona asked the caller what type of liquid savings fund he had for emergencies. The caller said $5,000.
Maimona told the caller he needed to take some of the money and put it into a liquid emergency fund — the equivalent of six months' living expenses if he was in a job that was more tenuous and three months if he was in a job that was more secure.
''You need an emergency fund first,'' he said.
Betty Lin-Fisher can be reached at
330-996-3724 or blinfisher@
thebeaconjournal.com.
The counselors
The following people volunteered their time during the free call-in credit counseling session:
From the Consumer Credit Counseling Service:
• Terri Campanelli, Community Outreach Director
• Victor L. Russell, regional manager
• Jay Seaton, area president
From the Financial Planning Association of Northeast Ohio:
• Darrell C. Claytor, CFP, Securities America, Twinsburg
• Andrew J. Maimona, CFP, M&H Wealth Management, Stow
• Ken Robinson, CFP, Practical Financial Planning, Cleveland
• Ted Sadar, CFP, Sadar Financial Management, Akron
Other free call-in sessions
The Beacon Journal, in cooperation with experts from the Consumer Credit Counseling Service and members of the Financial Planning Association of Northeast Ohio, will offer two more free counseling seminars by telephone:
• Wednesday, Oct. 22 — 6 to 8 p.m.
• Saturday, Oct. 25 — 10 a.m. to noon
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