Parachute Services Archives

Credit, Debt, Parachute Services, Uncategorized

Can I Negotiate Credit Card Debt?

Many of us have been there… our credit card debt is mounting. The increased interest rates aren’t helping matters, and we are starting to feel like we need a plan.

When you are first starting out on your path to become debt free, it can be very overwhelming. After internet searches, and reading some articles, you see that debt management and debt settlement come up often. But what is the difference and how do you know what is right for you?

Debt Management Plan (DMP)

Debt Management Plans (DMP) are typically offered by non-profit credit counseling agencies (like Parachute!) It’s a plan between you and the credit counseling agency designed to repay your unsecured debts in full within 5 years or less. The agency will negotiate with your creditors to lower your interest rates, lower monthly payments, and stop fees. One monthly deposit is made to the credit counseling agency, then your funds are distributed to your creditors every month. You don’t have to be behind on your debt to enroll, and since the companies offering DMPs are typically non-profit, the fees for service are low. You will review your finances, credit and goals with a certified credit counselor who can help you understand your options.

Debt Settlement

Debt Settlement is when your debt is settled for less than the full amount you currently owe, typically in one lump sum payment. You usually cannot settle your debts without being significantly past due, or in default. Any amount of debt forgiven over $600 is considered taxable income by the IRS. For example, if owe $8,000 on a debt, and the creditor agrees to a settlement amount of $5,000, you will owe taxes on the $3,000 forgiven by the creditor. You can negotiate a debt settlement yourself, but there are for-profit companies that you pay to hold your money to save up enough to settle the debt, and to help with negotiations. Fees can be high, and you risk further damaging your credit and lawsuits from creditors that are not willing to settle or wait until you’ve saved enough money to pay the settlement.

What is the difference between a DMP through a credit counseling agency and a Debt Settlement Company?

Credit Counseling Agencies that offer Debt Management Plans	Debt settlement companies
Usually non-profit organizations	Usually are for-profit companies that charge a fee for their services. Generally, these companies cannot charge you until after they perform services
Advise you on managing your money and debts and help you budget your payments	Offer to arrange settlements of your debts with creditors or debt collectors
Reach agreed upon payment plans or agreements with your creditors to ensure that the creditors will not pursue collection efforts or charge late fees while on the plan	Often have no up-front agreements with creditors. Some creditors will not negotiate with debt settlement companies
Usually do not negotiate any reduction in the amounts you owe – instead, they can lower your overall monthly payment	Typically offer to pay off your debts with a lump sum payment that you save up in an independent account that you control
Do not advise you to stop paying your debt, but may help negotiate your monthly payments	Usually advise that you stop paying your creditors until a debt settlement is negotiated with creditors, which may damage your credit and result in your being sued
Payment plans do not usually have tax implications	Debt settlement may involve debt forgiveness, which may have tax implications

As always, your financial situation is unique to YOU! There is no one-size-fits-all solution to resolve debt. In fact, these are only two options that we’ve highlighted here.

In order to start your debt free journey, we encourage you to speak one-on-one with a Certified Financial Counselor who will thoroughly review your income and expenses, explain your credit report and score, analyze your debts, and provide you with expert action steps to resolve your debt. Parachute is here to help! Contact us to start your debt free journey! 716-712-2060 or www.parachutecreditcounseling.org

Dare to be Debt Free!

Budget, Credit, Debt, Parachute Services, Uncategorized

Parachute Celebrates National Consumer Protection Week

Looking to protect yourself from fraud, identity theft, and scams? Wondering about the best way to improve your credit, shop for a used car, or how to maximize your security online?

Parachute has information for you during National Consumer Protection Week (NCPW) — March 5 – 11, 2023 — and any time of the year. NCPW is a time when government agencies, consumer protection groups, and organizations like ours work together to share information about consumer rights and help people learn to spot, report, and avoid scams.

Go to parachutecreditcounseling.org for more information. Also, visit ftc.gov/ncpw to learn how to get free consumer education materials and read the latest from consumer protection experts.

As always you can reach out to us directly at 716-712-2060 or www.parachutecreditcounseling.org for your help and education on all things credit, budget and personal debt!

Debt, Parachute Services, Relief Programs, Student Loans

While Long Awaited Student Loan Forgiveness is Blocked By Lawsuit, Parachute Credit Counseling Offers Encouragement and FREE Student Loan Counseling

While Long Awaited Student Loan Forgiveness is Blocked By Lawsuit, Parachute Credit Counseling Offers Encouragement and FREE Student Loan Counseling

The Supreme Court will hear arguments for and against this loan cancellation plan on February 28, 2023

The financial futures of nearly 43 million borrowers across the country are in limbo as the Supreme Court considers the legality of President Biden’s student debt forgiveness program.

President Biden’s student loan forgiveness plan, announced in 2022–which provides up to $20,000 in relief to millions of borrowers–faces legal challenges. While many Americans were happy with the new loan forgiveness plan, there is concern that without the root causes of the student debt crisis addressed, there will be no fundamental changes made to a system in great need of repair. Most people on all sides of the issue agree that the present system is broken and will need legislation to fix it. Even without further and far reaching actions at this point, if allowed, student loan forgiveness will still make a big impact among borrowers who are low-income or didn’t finish college and are stuck paying off a loan.

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)—announced that it is now offering free Student Loan Counseling throughout the eight counties of Western New York along with expert strategies for attaining financial stability. Although payments on federal student loans have been suspended since March 2020, with interest-free relief, they will resume later this year so it is time for all to plan. Despite the current uncertainty, other relief options and changes to existing programs will be available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling to understand their options.

Parachute has operated the only Student Loan Counseling Program in Western New York for the past ten years. Right now, the national total student loan debt, including federal and private loans, sits at $1.75 trillion.

About 1 in 6 adults in America holds federal student loan debt. A typical undergraduate finishes school with nearly $25,000 of debt and a monthly payment of $460, which takes an average of 20 years to pay back while accruing $26,000 just in interest. Tuition fees have nearly tripled since 1980, outpacing inflation and wage growth. Student loan repayment is a critical issue that needs much direction.

The situation at this time is: millions of borrowers have already been approved for loan forgiveness, but the government is powerless to act because two federal courts issued nationwide injunctions prohibiting any debt relief under the plan. Most legal analysts expect the Supreme Court’s conservative supermajority to side against the administration, preventing the government from forgiving a cent of student loan debt. There is a real chance, however, that a majority may instead find that the plaintiffs—a group of red states and two disgruntled borrowers—lack standing to sue, which would allow the program to move forward. SHIRIN ALI, FEB 26, 2023—SLATE

While we wait for an answer…Parachute encourages residents to join our FREE Student Loan Counseling Program, staffed by experienced, certified financial counselors. Call 716-712-2060 or visit https://parachutecreditcounseling.org/ for more information on our program and other financial services we provide.

Parachute Services, Student Loans

Parachute Credit Counseling Receives Major Grant From the Community Service Society to Join the EDCAP Network – Will Offer FREE Student Loan Counseling

Parachute Credit Counseling Receives Major Grant From the Community Service Society to Join the EDCAP Network

Will Offer FREE Student Loan Counseling

At a Time When Long Awaited Student Loan Forgiveness is Blocked By a Lawsuit

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)—is now offering free Student Loan Counseling throughout the eight counties of Western New York. Right now, the national total student loan debt (including federal and private loans) sits at $1.75 trillion.

Parachute has operated the only Student Loan Counseling Program in Western New York for the past ten years. Student loan repayment has long been an obstacle, particularly for younger people. Forty-five percent of New York’s 18–35-year-olds carry student loan debt with an average balance of $28,950 and monthly payment of $460. It takes 20 years, on average, to pay off loans accruing $26,000 just in interest.

In welcome news, the Community Service Society of New York (CSS) awarded $100,000 to Parachute to join its Education Debt Consumer Assistance Program (EDCAP) Network. EDCAP helps New Yorkers with student debt to navigate the student loan repayment system and regain financial health. The New York State Department of Financial Services will oversee this grant which comes at “a critical time as borrowers navigate the complex student loan repayment system, try to benefit from the latest relief available, and prepare for payment resumption,” said Carolina Rodriguez, EDCAP’s program director.

President Biden’s student loan forgiveness plan, which provides up to $20,000 in relief to millions of borrowers, faces legal challenges. The Supreme Court will hear arguments for and against this loan cancellation plan on Feb. 28, 2023. Although payments on federal student loans have been suspended since March 2020, with interest-free relief, they will resume later this year. Despite this uncertainty, other relief options and changes to existing programs will be available to help borrowers reduce or eliminate their debt. Now is the time for borrowers to seek free and unbiased counseling to understand their options.

Parachute is here to help! Our FREE Student Loan Counseling Program is staffed by experienced and certified financial counselors who are ready to assist residents of Western New York with their student loan issues. Our new partnership with EDCAP, will allow us to serve even more people. Don’t struggle with student loans alone, take control of your finances and reach out to us for help. Call 716-712-2060 or visit our website www.parachutecreditcounseling.org for more information on our program and financial services.

Parachute Services, Taxes

FREE Tax Prep For Niagara County Residents Beginning January 31st; Locations in Lockport and Niagara Falls

Consumer Credit Counseling Service of Buffalo Changes Name to Parachute Credit Counseling, Will Continue to Serve as Guide to Financial Stability and Freedom from Debt

Parachute Credit Counseling—formerly known as Consumer Credit Counseling Service of Buffalo (CCCS)–announced today that they will launch the 9th year of their Niagara County Free Tax Preparation Program on January 31, 2023.

Parachute will use a “Drop Off” process with sites in Niagara Falls atPinnacle Community Services, 1522 Main St. and in Lockport at the Lockport Library, 23 East Avenue.

Individuals must contact Parachute’s main office at 716-712-2060 to schedule a time to drop off their documents. Certified, trained Parachute tax volunteers then prepare the tax returns remotely. Tax filers will be given a time to go back to the Drop Off site to review their return and provide their signature to e-file the return. They will receive a copy of the completed return as well. Those interested are encouraged to call now—716-712-2060–to set up their drop off appointment as appointments book up very quickly.

Parachute also provides additional free services to the community. Certified Financial Counselors work with people of all economic levels to improve their financial stability. The areas of greatest need include debt repayment assistance, credit repair/repayment, credit report review, student loan assistance, budgeting techniques, small business development and housing/homeownership/foreclosure mitigation. Parachute also offers frequent Free Virtual Workshops on relevant, timely topics.

Consumer Credit Counseling Service of Buffalo (CCCS) rebranded to Parachute in December 2022, when they determined they needed a name that better reflected its power and potential.

“We wanted to change our name and logo to reflect our mission of making our clients feel empowered and not embarrassed about their debt,” said Parachute President & CEO Noelle Carter. “It takes courage to make that leap and we are here to be a parachute – a guide – on the journey to financial stability and becoming debt free.”

Parachute provides the much needed lifeline for many, helping them to smoothly land on the other side of debt.

For more information on Parachute’s service offerings, from one on one counseling sessions to the path to a lifetime free from debt, contact Parachute at 716-712-2060 or visit Home – Parachute (parachutecreditcounseling.org).

Credit, Debt, Parachute Services, Uncategorized

Consumer Credit Counseling Service of Buffalo is Now Parachute Credit Counseling

Parachute Credit Counseling provides services to help clients “dare to be debt free”

BUFFALO, NY (December 7, 2022) – Consumer Credit Counseling Service of Buffalo announced it has changed its name to Parachute Credit Counseling to illustrate the agency’s commitment toward being a guide on their client’s journey to “dare to be debt free.” Clients will still get the same quality service they have relied on for more than 50 years, but now with a new look.

Parachute Credit Counseling mission is to be the most trusted guide on an individual’s journey to becoming debt free. With the right tools and a strategically mapped out plan, clients can make a smooth soft landing on the other side of debt.

Parachute Credit Counseling is a nonprofit agency offering financial counseling, debt management, student loan counseling, financial coaching, credit report review, reverse mortgage counseling, pre-purchase homebuyer counseling, delinquency housing counseling, and small business credit counseling. The agency offers services in 18 states and the District of Columbia.

For more information about upcoming workshops and the services Parachute offers, visit the website at (insert new website here) or call 716-712-2060 to set up an appointment at any of the locations.

ABOUT PARACHUTE Parachute Credit Counseling, formerly, Consumer Credit Counseling Service of Buffalo, Inc. is a nonprofit agency established in 1965 to provide the best strategies to help people master their credit. Parachute is a member of the of the National Foundation for Credit Counseling and an A+ member of the Better Business Bureau. It is also a certified HUD counseling agency, licensed budget planner through the NYS Department of Financial Services, Executive Office of the U.S. Trustees approved for certified bankruptcy counseling sessions and accredited by Council on Accreditation of Services for Families & Children (COA), Inc. Parachute is based in Buffalo, NY, but offers services in Arkansas, Alaska, District of Columbia, Florida, Georgia, Hawaii, Illinois, Louisiana, Massachusetts, New Mexico, New York, North Carolina, Ohio, Oklahoma, South Dakota, Tennessee, West Virginia, Washington, & Wyoming.

Debt, Parachute Services, Student Loans

CCCS Launches New, FREE Student Loan Counseling Program; Joins the Education Debt Consumer Assistance Program (EDCAP) Network

CCCS Launches New, FREE Student Loan Counseling Program; Joins the Education Debt Consumer Assistance Program (EDCAP) Network

Will Help Local Borrowers Access Loan Forgiveness & Navigate Complex Student Loan Repayment System

Shortly after the federal government kicked off their student loan forgiveness application process, Consumer Credit Counseling Service (CCCS) announced their newly redesigned, cost free Student Loan Counseling Program to assist local borrowers. While the government’s process is meant to be simple, the complexities of student loans often cause uncertainty, anxiety and frustration.

For the past ten years, CCCS has operated the only Student Loan Counseling Program in Western New York, helping thousands of besieged borrowers tackle what many felt was insurmountable debt. Student loan repayment has long been an obstacle for a significant percentage of the population, particularly for younger people. 45% of 18-35 year olds currently have student loan debt in New York State. Right now, 2.4 million New York State residents have outstanding loans; a total cumulative debt of over $90 billion.

In October, the Education Debt Consumer Assistance Program (EDCAP) invited CCCS to join their statewide network after the New York State Legislature increased their funding specifically designated for New York State residents with higher education debt. EDCAP–a program of the Community Service Society of New York (CSS)—and CSS work to make New York State more livable for people facing economic insecurity. CSS created EDCAP as an initiative to help New Yorkers struggling with student debt to navigate the student loan repayment system and regain financial health. In addition to CCCS, EDCAP selected nine other partner organizations throughout the state to serve all of its geographic areas. Seven of these organizations focus on legal services and the other organization is a United Way, indicating that CCCS offers unique and highly regarded services.

CCCS’ collaboration with EDCAP provides CCCS with much needed funding to deliver all student loan counseling services free of charge to WNY residents. EDCAP, in turn, gets a greater and more direct geographic reach into a targeted area. The NYS Department of Financial Services will oversee this project which comes at “a critical time as borrowers navigate the complex student loan repayment system, try to benefit from the latest relief available, and prepare for payment resumption.” EDCAP

A slew of information—including announcements of major, sweeping, long awaited changes to student loan forgiveness that require specific, precise action steps–has steadily flowed recently. We designed our Student Loan Counseling Program to guide borrowers through the complicated process that is frequently intricate and quite possibly thorny. Experienced, Certified Financial Counselors understand that many of those coming for help feel overwhelmed, are confused or just plain over it…and are ready to help all. Our new partnership with EDCAP will allow us to serve even more people. We urge everyone to take positive action that will promote financial stability…Contact us at 716-712-2060 or www.consumercreditbuffalo.org for help with student loans or for any type of financial issues.

Parachute Services

CCCS Offers FREE Counseling Services & FREE Virtual Workshops for Financial Literacy Month, Starting April 1st

Call 716-712-2060 or visit www.consumercreditbuffalo.org

The 1-year mark of the COVID 19 pandemic is upon us, and the impact has been heavy on people of all financial levels, particularly lower- and middle-income Americans. The toll of the damage has been vast, and the financial consequences may loom for years to come. Millions of Americans experienced unemployment and job loss for the first time, while many more have experienced hardship causing a range of economic challenges from the depletion of savings, to missing loan payments, to housing insecurity.

April also marks Financial Literacy Month, tax season, and the receipt of the third Economic Impact (Stimulus) Payment; an excellent opportunity to review your finances, gain financial knowledge, and improve your overall financial outlook.

Consumer Credit Counseling Service (CCCS) announced today that it will offer free credit counseling services for the month of April; which will include “Financial Counseling”, “Financial Coaching”, and “Credit Report Review” sessions by phone and encourages all those concerned with their financial issues to call 712-2060 or visit www.consumercreditbuffalo.org. A Certified Financial Counselor will address financial concerns and provide community resources and relief options that may be available for consumers struggling with mortgage, student loan, auto loan and credit card payments. In addition, a Counselor can thoroughly review an individual’s or household’s income and expenses, credit report and score, and assist in creating a sustainable household budget.

In addition, CCCS, continues to offer free virtual workshops throughout the month focused on various topics such as budgeting, credit, managing student loans, identify theft and scams, and COVID-19 related relief, resources and referrals.

Upcoming April Workshops:

“Keeping Your Credit and Wallet Safe” – April 13^th @ 12:00 PM
“Making Sense of Student Loan Repayment” – April 27^th @ 5:30 PM EST

In addition, CCCS offers the following recommendations and guidance regarding the most recent stimulus payments: Make a spending plan before spending any of the money to determine how it can be best utilized

Catch up on any past due bills – Specifically housing and utility expenses
Start or fund an emergency savings account – This can help with unexpected expenses right away, or in the future
Pay down high interest rate debt, particularly credit cards

Start a holiday savings account – It’s never too early
Invest for your future – retirement, college savings, etc.

Financial Literacy Month is celebrated throughout the U.S. every April. Congress originally created it to raise public awareness about the importance of financial education and the serious consequences associated with a lack of understanding about personal finances.

This year, CCCS is using Financial Literacy Month to encourage all Western New York residents to determine their financial weaknesses, address debt, develop a budget, increase financial capabilities and to improve their economic stability. By providing free credit counseling services during the month of April, CCCS is taking positive action to promote financial stability for individuals and families in our region.

Community members are urged to call CCCS at 712-2060 or visit www.consumercreditbuffalo.org Take action to get back on a path toward financial stability and security during these extraordinary times.

Parachute Services

CCCS OF BUFFALO LAUNCHES NEW PROJECT TO HELP PEOPLE TACKLE DEBT EARLIER

We know it can be scary to reach out for support.

We want community members to know that they are not alone.

Without paychecks to cover their bills and emergency funds to fall back on, many Americans have turned to credit to stay afloat. DebtMonsters.org helps community members identify their debt situation and provides helpful next steps

Consumer Credit Counseling Service of Buffalo (CCCS) today launched a new project to help community members identify their debt challenge and to access tips, tools, and support.

Research conducted by The Ohio State University demonstrates the positive client impact of nonprofit credit counseling. However, community members with debt challenges often reach out for credit counseling when they are already struggling with collections or are facing utilities shut off or even eviction.

A better time for people to reach out is when they are making payments, but those payments are not measurably bringing down their balances. “Our counselors often hear from clients that they wished they’d come in earlier for help addressing their debt, so this project is in response to that need,” said Noelle Carter, President & CEO. “We know it can be scary to reach out for support especially if you’re already struggling with a job loss, reduced hours, medical hardship, or caring for a family member. We want community members to know that they are not alone.”

Through CCCS’ new project and newly launched website, DebtMonsters.org, community members can take a fun, non-judgmental web-based quiz that helps people identify their debt situation and directs them to clear, easy next steps. CCCS wants people to know that there are tips, tools, and programs that can make a difference.

In addition to a locator to identify their local nonprofit credit counseling agency, the quiz also directs visitors to resources that can help them take the recommended next steps for their debt situation. Community members can reach out directly for help by visiting the www.consumercreditbuffalo.org or (716) 712-2060.

Debt is a very real problem. According to the Federal Reserve Bank of New York, Americans collectively hold $14.35 trillion in debt, increasing by $87 billion in the third quarter of 2020. While total credit card balances held by Americans have decreased $86 billion over the last two quarters combined due to weak consumer spending and some households paying down existing credit card debt, millions continue to struggle with the burden of debt in the face of time of adverse economic times. For many in our community, debt may enable homeownership or access to education. But for others, debt can quickly become difficult to manage as households experience emergencies, unexpected expenses, or shortfalls in their cash flow.

A February 24^th article in Yahoo!Financedetails the results from a recently conducted GOBankingRates survey which sought to determine the average debt individuals will take on due to the coronavirus pandemic. Nationwide, about half of respondents said they expect to take on debt. However, that percentage varies greatly from state to state. https://finance.yahoo.com/news/much-debt-americans-due-coronavirus-130000018.html

Here is the debt breakdown they discovered for New York State:

$0: 47.98%

$1-$999: 15.15%

$1,000-$4,999: 14.65%

$5,000-$9,999: 9.09%

$10,000-$19,999: 6.57%

$20,000-$49,999: 3.54%

$50,000 or more: 3.03%

Whatever type of debt—or none at all—CCCS is ready to help all WNY residents. For any interested in a free financial checkup by phone—or any type of help at all–call 712-2060 or visit www.consumercreditbuffalo.org A Certified Financial Counselor will help address any financial concerns and can assist in creating a budget. CCCS urges everyone to take positive action that will promote financial stability.

Parachute Services

CCCS Seeks Volunteers: Improve the Economic Stability of Niagara County Residents

CCCS Seeks Volunteers: Improve the Economic Stability of Niagara County Residents;

Seeking Tax Preparation Volunteers

Volunteers have 27% higher odds of finding a job after being out of work than non-volunteers

Make A Difference in Your Community—while adding skills to your resume

Between the pandemic and our country’s recent social justice reckoning, the financial insecurity faced by millions of Americans is finally being seen as a systemic issue in need of reform.

An emerging movement for economic justice calls for intervention from the government, employers and nonprofit organizations. Consumer Credit Counseling Service of Niagara (CCCS) and the Niagara County Financial Literacy & Empowerment Coalition are leading the efforts in Niagara County.

And while the work is complex and will take much time, CCCS and the Coalition are beginning part of this ongoing project by announcing that they will once again hold their Free Tax Prep/Volunteer Income Tax Assistance (VITA) Program in Niagara County with sites in Lockport and Niagara Falls.

Volunteers will help low income individuals and families file their taxes—and access eligible tax credits–saving them hundreds of dollars in unnecessary tax preparation fees (Average cost of tax prep=$300 and tax credits, like the Earned Income Tax Credit, ranges from $506-$6,269) and avoiding refund anticipation loans and inflated filing fees (typically about $200 per filer—this makes the cost of filing taxes $500 or more!).

CCCS and the Coalition announced today that they are seeking volunteers for a few hours per week February through April 15^th2021 to help with its Free Tax Prep Program. Those interested in becoming volunteers are urged to register with CCCS by contacting Robby Dunn at robert.dunn@cccsbuffalo.org by November 30^th. There is no prior experience required. Volunteers will receive free training and be part of a program that helps thousands of households every year. We encourage all those who want to help the individuals and families who are hurting the most to join our team.