New Creditors calling?

Some of your accounts may be transferred or sold to other creditors and/or collection agencies while you are enrolled in the Debt Management Program.  The new company will usually contact you either by phone, mail or both, to introduce themselves and, possibly, initiate a payment program directly with them.
 

First, tell them that you are enrolled in a DMP with our agency and give them our customer service number. Be sure to take notes and record the name of the company, the name of the person you are speaking with, their telephone number and address.

Call CACC Customer Service as soon as possible to report the call so that we can contact that creditor. You may be asked to fax a copy of any correspondence you received to us.
 

Finally, continue to make monthly payments as usual.

More credit for consumers this year?
 

During the second quarter of 2011, more consumers opened card accounts than closed them, and they had bigger credit limits to charge with according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit. The number of credit card accounts jumped by 10 million, to 389 million, between April 1 and June 30. In addition, aggregate credit limits went up by $60 billion.

The New York Fed reported that in the second quarter:
 

-Credit limits rose by $60 billion (2.1 percent) from the prior quarter, for the second consecutive increase.
 

-Consumer interest in getting credit rose. The number of credit account inquiries -- which combines requests for new accounts and higher credit lines on existing accounts -- rose again.
 

-The number of open credit card accounts rose by 10 million to 389 million. However, the number of open credit card accounts on June 30 was down 22 percent from its peak during the second quarter of 2008.

Don't get too excited though. Credit is still more difficult to qualify for. Tough standards remain and most banks say credit card lending standards remain tighter than they were in 2005. The Fed's survey showed that roughtly 11 percent of banks reported tightening credit limits on new or existing cardholders, and twice as many banks reported raising interest rates on new or existing cardholders.

Credit is more than just a plastic card you use to buy things - it is your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors will be more willing to work with you. With 60% of employers now reporting that they check credit when making hiring decisions, your credit is also your Financial Resume!

Having good credit translates into lower payments, more ease in borrowing money, and possibly, a job.

Thinking of credit as more than credit cards and beginning to view your credit with a big picture mentality will help guide you in making many financial decisions today and into the future.

Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting agencies is required to provide you with a free copy of your credit report once every 12 months, if you request it. To access your free report visit: www.annualcreditreport.com or call 1-877-322-8228.
 

Remember... www.annualcreditreport.com is the only Web site, mandated by Federal Law, where you can get a truly free copy of your "Big 3" credit reports once every 12 months. Other web sites offering free credit reports are usually selling some type of membership or monitoring service in return for giving you a credit report. These services can cost as much as $200 a year. 
 

Consumer Tips

For borrowers having trouble paying down debts, the AMerican Bankers Association (ABA) advises taking action -- sooner rather than later -- to solve debt problems with the following tips:

-Talk with creditors - the sooner you talk to them, the more options you have;

-Don't charge more purchases until your problems are solved;

-Avoid bankruptcy - it's a short-term solution with long-term consequences; and call CACC for help.