Lisa Robertson, Author at Parachute

Overwhelmed by Credit Card Debt? Your Map to Financial Freedom Starts Here.

Overwhelmed by Credit Card Debt? Your Map to Financial Freedom Starts Here.

If you’re reading this, you’re likely one of the millions of people asking: “How do I get out of this credit card debt, and where do I go for help?”

It’s an overwhelming feeling, like free-falling without a safety net. The good news? You are absolutely not alone, and there is a safe landing spot. As certified financial counselors, we hear these questions every single day, and they usually boil down to three key areas.

1. The Most Common Questions We Hear

Is my debt too much?

We often talk to people who fear they’ve crossed some invisible line. The reality is, “too much” debt isn’t defined by a dollar amount, but by its impact on your life. If your minimum payments are eating up your budget, causing you to avoid phone calls, or making you choose between groceries and a payment, then it’s time to act. It’s too much when it controls you.

What’s the best way to pay this off: Snowball or Avalanche?

These are the two most popular DIY (Do-It-Yourself) debt payoff methods:

The Debt Snowball: You focus on paying off the smallest balance first, regardless of the interest rate. Once it’s paid, you roll that payment amount into the next smallest debt. This method is great for motivational wins and building momentum.
The Debt Avalanche: You focus on paying off the debt with the highest interest rate (APR) first. This is the most mathematically efficient method because it saves you the most money in interest charges over time.

Choosing the right method depends on your personality, but remember, any plan you can stick to is the right plan.

Should I consolidate my debt?

Debt consolidation—taking out a new loan to pay off old ones—is a great strategy if you can secure a lower interest rate. It simplifies your payments into one fixed monthly bill. However, if your credit history is shaky, consolidation loans may still come with high rates. This is where professional counseling can provide a safer, more effective alternative.

2. Your Safest Landing: Choosing the Right Help

When debt feels insurmountable, the search for help can lead you down two very different paths. It is crucial to know the difference between proven, consumer-first guidance (like ours) and riskier, for-profit promises.

Option 1: Nonprofit Credit Counseling (The Parachute Approach)

This is your safest, most educational, and credit-preserving path.

What it is: A meeting with a Certified Financial Counselor (free of charge) who reviews your entire financial picture, helps you build a sustainable budget, and explains all your options.
The Debt Management Plan (DMP): If you qualify, your counselor can enroll you in a DMP. This program allows you to combine all your eligible unsecured debts (like credit cards and personal loans) into one manageable monthly payment. We negotiate with your creditors to potentially lower your interest rates, allowing you to pay off your debt in full, typically within five years or less.
Why it works: It pays your debt in full, preserves your credit score better than other options, and most importantly, it comes with the financial education you need to stay debt-free for life.

Option 2: Debt Settlement (The Risky Route)

We generally advise extreme caution with for-profit debt settlement companies.

What it is: A third-party company advises you to stop paying your creditors and instead save money into an escrow account. They then try to negotiate a settlement—a lump sum payment that is less than your total debt.
The Risks:
1. Credit Damage: Stopping payments severely damages your credit score.
2. Fees and Interest: Interest, late fees, and collection calls continue until a settlement is reached, potentially taking years.
3. Taxes: Forgiven debt is often considered taxable income by the IRS, leading to a surprise tax bill.
4. Lawsuits: Creditors may sue you for non-payment before a settlement is ever negotiated.

Feature	Nonprofit Credit Counseling (DMP)	Debt Settlement (For-Profit)
Focus	Education & Repayment in full	Negotiation & Debt reduction
Interest	Works to lower your APR	Interest & fees accumulate
Credit Score	Less damage; helps recovery	Severe damage
Payment Status	Requires on-time payment	Requires stopping payments

Your First Step Today: Take the Jump

You don’t have to navigate this journey alone! The fear comes from not having a plan, and the stress comes from the mounting interest.

At Parachute Credit Counseling, our goal is to give you a clear, safe, and personalized path to debt freedom.

Ready to find out if a Debt Management Plan is right for you?

GET STARTED HERE

Credit, Debt, Parachute Services

Caught in the Debt Spiral? Why Record-High APRs and Inflation Mean You Need a Financial ‘Parachute’ Now

It’s official: U.S. consumer debt has hit a staggering, unprecedented new high.

If you’ve been feeling the pressure of rising costs, you’re not alone. Here at Parachute Credit Counseling, we’re seeing the fallout firsthand. The toxic combination of persistent inflation, soaring living expenses, and credit card Annual Percentage Rates (APRs) stubbornly holding above 22% is creating a dangerous cycle that’s pushing millions of households toward unprecedented financial distress.

The Problem: When Credit Becomes Survival

According to the latest Federal Reserve data, total credit card balances in the U.S. have soared past $1.23 trillion.

While credit cards used to be primarily for “wants,” our certified counselors are reporting a dramatic increase in clients who are using them for basic needs—groceries, gas, and housing—simply because their paychecks can’t keep up with inflation.

As Noelle Carter, President & CEO of Parachute Credit Counseling, explains:

“What we’re seeing is a dramatic shift in how people use credit. It’s no longer about discretionary spending; it’s about survival. When inflation forces families to put groceries on a credit card charging 22% interest, the debt becomes unmanageable very quickly. The interest payments are swallowing up disposable income, making it impossible to save or pay down principal.”

When you’re constantly paying 22% interest on necessary expenses, that debt quickly becomes an anchor, making it feel impossible to get ahead.

Deploy Your Financial Parachute: A Non-Profit Lifeline

The good news is that you don’t have to face this crisis alone. Professional, non-profit credit counseling is a confidential and critical lifeline designed to help you stabilize your financial future.

Parachute Credit Counseling is dedicated to helping you find solutions with personalized, non-judgmental assistance in three key areas:

1. Immediate Relief from High-Interest Debt

Through our Debt Management Plans (DMPs), our certified counselors can work directly with your creditors. The goal is to potentially lower interest rates and consolidate multiple payments into one manageable monthly bill, immediately making debt repayment achievable rather than an impossible burden.

2. Financial Education and Budgeting

We don’t just treat the symptoms; we help you fix the cause. We provide the tools and coaching necessary to stabilize your household budget, understand where your money is going, and ultimately break the reliance on credit to cover basic costs.

3. Targeted Support for Complex Debt

We offer expert guidance on areas beyond general credit card debt, including assistance with complex student loan repayment options. We know that student loan delinquency rates have seen a sharp rise since federal payments resumed, and we can help you navigate these specialized issues.

Don’t Wait for the Crisis to Worsen

If you are struggling to keep up with credit card payments, or if you feel overwhelmed by the prospect of rising debt, please know that confidential help is available.

At Parachute Credit Counseling (formerly Consumer Credit Counseling Service of Buffalo, CCCS), we have been helping individuals and families achieve stability and build better futures since 1965. We provide a non-judgmental environment focused entirely on solutions.

Ready to deploy your financial parachute? Reach out for a free, confidential consultation today.

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Budget, Debt, Parachute Services, Relief Programs

Financial Parachute: Essential Money Tips for the Government Shutdown

The news of a government shutdown can send a wave of panic through federal employees and contractors. The uncertainty of a delayed or missed paycheck is stressful, but you are not without options. Having a financial “parachute” plan is the single most important step you can take right now to weather this disruption.

Here is your essential guide to stabilizing your finances and finding immediate relief.

1. Act Fast: Create a Bare-Bones Budget

The first, non-negotiable step is to get a crystal-clear picture of your money. You need a shutdown budget.

Triage Your Spending

Immediately identify and prioritize your “Four Walls” (essential expenses): housing (rent/mortgage), food, utilities, and essential transportation.

Slash Discretionary Spending

Temporarily pause or cut non-essentials. This may include streaming subscriptions, dining out, entertainment, and extra payments toward debt. Every dollar you save now is a dollar you won’t have to borrow later.

Evaluate Your Emergency Fund

Know the exact number of weeks your savings can cover your essential bills. This number provides the clarity you need to move forward.

2. Contact is Key: Talk to Lenders and Creditors

Do not wait until a payment is past due. Financial institutions and service providers are well aware of the situation and often have established assistance programs for affected federal workers.

Financial Institutions

Immediately call your bank or credit union. Many, particularly those that serve the military and federal community (like Navy Federal, USAA, and federal credit unions), offer special support, including:

Interest-Free Paycheck Advance Loans.
Temporary Fee Waivers (e.g., overdraft fees).
No-Penalty CD Withdrawals.

Housing & Loans

Contact your mortgage lender or landlord. Ask about hardship programs, payment forbearance, or temporary payment plans. Do the same for your auto and student loans.

Utilities

Many electric, gas, and water companies offer flexible payment arrangements for customers facing a temporary loss of income.

3. Income Bridges: Explore All Safety Net Resources

While you wait for Congress to reach a deal, look into every available source of financial assistance for federal employees.

Unemployment Insurance (UCFE)

Furloughed federal employees are generally eligible to file for Unemployment Compensation for Federal Employees. Though back pay is usually guaranteed (meaning you’d have to repay the benefits later), filing now can provide crucial income when you need it most.

Non-Profit Assistance

The Federal Employee Education & Assistance Fund (FEEA) often activates emergency grant and loan programs for employees impacted by a shutdown. Search for local community support by dialing 2-1-1 or visiting 211.org.

Temporary Work

Consider short-term, flexible side jobs, often referred to as “gig work,” to generate income and bridge the gap until you receive your back pay.

4. The Last Resort Rule: Protect Your Future

Be extremely cautious when considering solutions that compromise your long-term financial health.

Avoid High-Interest Debt

Stay far away from payday loans or car title loans. The predatory fees will only deepen your financial hole.

Think Twice About TSP/401(k)

Tapping into your Thrift Savings Plan (TSP) or other retirement accounts should only happen as an absolute last resort. Loans or hardship withdrawals can trigger penalties and permanently damage your retirement savings growth.

Your Trusted Guide: How Parachute Credit Counseling Can Help

Facing an income disruption makes you feel like you’re in a financial freefall. That’s where non-profit credit counseling steps in to be your guide.

Certified financial counselors at an organization like Parachute Credit Counseling can provide a non-judgmental, objective view of your situation. They can specifically help you:

Refine Your Shutdown Budget

They’ll work with you to master your cash flow and ensure every dollar goes toward essentials.

Navigate Debt

If you have credit card or other unsecured debt, they can provide debt management solutions and even intercede on your behalf.

Create a Repayment Plan

They’ll help structure a realistic plan for managing bills now and repaying any short-term loans once your back pay arrives, helping you land debt-free.

Don’t wait until the stress becomes overwhelming—reach out for confidential support now at 1-800-926-9685.

By taking these steps proactively, you can deploy a robust financial parachute that protects you and your family until your regular paychecks resume. You have options—use them!

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan:

Parachute Services, Student Loans

Federal Student Loan Collections Have Resumed – Act Now!

This is an important update regarding federal student loans. The pause on collections for defaulted federal student loans has ended.

What’s Happening Now:

Effective Monday, May 5, 2025, the U.S. Department of Education’s Office of Federal Student Aid (FSA) resumed collecting on defaulted federal student loans. This impacts over 5 million borrowers.

Treasury Offset Program: The government can now withhold federal payments, including tax refunds and Social Security benefits, if you have defaulted student loans.
Administrative Wage Garnishment: Later this summer, administrative wage garnishment will resume, allowing up to 15% of your disposable income to be withheld.

If You’re in Default – Act Immediately!

The FSA is urging all borrowers in default to take immediate action to avoid these involuntary collection measures. You should receive an email from FSA in the next two weeks with details on how to contact the Default Resolution Group. They can help you explore options like:

Setting up a monthly payment plan.
Enrolling in an income-driven repayment (IDR) plan.
Signing up for a loan rehabilitation program to get your loan back in good standing.

How Parachute Can Help (NY Residents):

For New York residents, Parachute offers free, confidential student loan counseling. Our counselors can help you understand your options, navigate the repayment process, and develop a plan to manage your student loan debt, especially if you’re in default. Contact us at (800) 926-9685 to schedule a session.

For those in other states, please visit StudentAid.gov for information on repayment options. You can also search for a local non-profit organization in your region that provides student loan counseling, such as those affiliated with the National Foundation for Credit Counseling (NFCC).

Taking proactive steps now can help you avoid serious financial consequences.

Budget, Parachute Services

FREE June 24 Virtual Workshop – “Have a Blast on a Budget: Summer Savings Hacks”

Have a Blast on a Budget: Summer Savings Hacks

NEW TIME!! Tuesday, June 24 from 6:00 p.m. – 6:30 p.m.

Don’t let rising temperatures lead to runaway spending! Discover smart ways to save on food, entertainment, and even your utility bills.

We’ll show you how to make small changes that add up to big savings. Unlock a summer that’s memorable and budget-friendly!

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

All workshop attendees will be entered to win a free Parachute appointment!

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching or call 716-712-2060.

Parachute Services, Student Loans

Student Loan Delinquencies Surge, Threatening Credit Scores and Financial Stability

A new report from the Federal Reserve Bank of New York’s Center for Microeconomic Data reveals a sharp increase in student loan delinquencies, raising concerns about the financial health of millions of borrowers.

The report, which includes data updated through the first quarter of 2025, shows that after a five-year pause, student loan delinquency rates have returned to pre-pandemic levels. Nearly one in four borrowers (23.7%) with a payment due are now behind on their student loans. This surge is attributed to the expiration of pandemic-era protections that temporarily halted loan payments and reporting of delinquencies to credit bureaus.

The consequences of this rise in delinquencies are significant. The report highlights that borrowers who have become newly delinquent are experiencing substantial declines in their credit standing. Over 2.2 million borrowers saw their credit scores drop by more than 100 points, and over one million saw decreases of at least 150 points. This credit score damage will lead to:

Higher borrowing costs for future loans (auto, mortgage, etc.)
Difficulty obtaining new credit cards
Challenges securing housing and employment

The findings underscore the vulnerability of borrowers, particularly those over 40 and those with already subprime credit scores, who now face increased financial hardship due to these delinquencies.

“The resumption of federal student loan collections marks a significant and potentially destabilizing event for millions of borrowers who have already faced economic hardship. The end of this long-standing pause demands immediate attention and action from borrowers to understand their repayment options and avoid the severe consequences of default, including wage garnishment and the withholding of essential federal benefits,” says Noelle Carter, President & CEO of Parachute Credit Counseling.

For those facing student loan challenges, Parachute Credit Counseling offers free, confidential support. Our experienced counselors advocate for borrowers, helping them understand their options with the Default Resolution Group and assisting them in choosing the path that aligns with their best interests. For more information, borrowers can call 716-712-2060 or visit https://parachutecreditcounseling.org/.