Beware of what lies down the track!

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Beware of what lies down the track!
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It might be your Client!
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• CCCS is a nonprofit mission-driven 501 (C)(3)
  educational organization dedicated to providing
  consumer health through financial education
• We are the largest Virginia nonprofit credit
  counseling agency in the state of Virginia
• We are the only credit counseling agency in the
  country that enjoys a national BBB membership

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Who Are We?
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Ann Estes Vice President of Counseling and
Delivery Services

• Former Vice President of Bank of America
• Oversees 43 offices in 10 states
• Over 25 years of experience in the financial
  sector

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Chris Honenberger President and CEO

• Former President and CEO of Second Bank Trust
  (now StellarOne)
• Former Director and Chairman of Community Bankers
  Bank
• Former member of Board of VBA

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Junes Story
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See more on June and other ClearPoint clients
at www.repaydebt.org
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Why ClearPoint?Why Now?
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SCENARIO Claudia and Cliff Client
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• Claude Clifford Client
• Bankers as well as Financial Planners are seeing
  clients who
• Previously had a line of credit in place to use
  for home improvement, emergency use and
  contribute regularly to 401.
• These clients have even increased the size of
  their HELOC and often have drawn the entire
  availability against the line.
• Today, they often need to draw against the line
  for emergency purposes (loss job/reduction of
  income/under-employment).
• A review of the loan application reflects an
  unacceptable debt to income level, 8 credit cards
  with high balances, as well as a declining credit
  score. DANGER THEY CONSIDER 401s as a pool
  of available funds!

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So What are we seeing?
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Lets Compare . . .What Does The Typical Credit
Counseling Client Look Like Today Compared To
Yesterday?
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2005
2009
Low to moderate income College Graduate
13 Single 55 vs. Married 45 Female 63 vs.
Male 37 8 Credit Cards/maxed, averaging 18,000
outstanding debt Average Mortgage
131,000 Average Car Loan(s) 20,000 1 out of
every 12 people in the US have at least 1 payday
loan.
Moderate/middle/upper income College Graduate
28 Single 52 vs. Married 48 Female 68
vs. Male 32 10 Credit Cards/maxed, average
22,700 outstanding debt Average Mortgage
190,100 Average Car Loan(s) 30,295 1 out of
every 8 people in the US have at least 1 payday
loan.
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Clouds on the Horizon?
Jan 2007 - Jan 2009 Counseling Solutions
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2009 January Counseling Sessions

• CREDIT
• COUNSELING
• 5141

TOTAL COUNSELING 7705
12 INCREASE
19 INCREASE
INCREASE OVER 2008
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Your Customer at Risk will not askIs it Coast
Guard Approved?
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Do youknow whoyour clientis turningto
forhelp?
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• Even highly educated clients are turning to

• Payday lenders
• Finance / Rent to own companies
• Prepaid / Preapproved credit scams
• Debt settlement companies
• Foreclosure
• Bankruptcy

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Nancys Story
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See more on Nancy and other ClearPoint clients
at www.repaydebt.org
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• Thank You!

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