Beware of what lies down the track!

Beware of what lies down the track!

It might be your Client!

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

Who Are We?

❖ Former Vice President of Bank of America

❖ Oversees 43 offices in 10 states

❖ Over 25 years of experience in the financial sector

Ann EstesVice President of Counseling and Delivery Services

❖ Former President and CEO of Second Bank & Trust (now StellarOne)

❖ Former Director and Chairman of Community Bankers Bank

❖ Former member of Board of VBA

Chris HonenbergerPresident and CEO

June’s Story

See more on June and other ClearPoint clients at

www.repaydebt.org

Why ClearPoint?Why Now?

SCENARIO

Claudia and Cliff Client

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!”

So – What are we seeing?

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Let’s Compare . . .

What Does The Typical Credit Counseling Client Look Like

Today Compared To Yesterday?

2005 2009Low 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

2009 January Counseling Sessions

CREDITCOUNSELING

5141

*INCREASE OVER 2008

12% INCREASE*

TOTALCOUNSELING

7705

19% INCREASE*

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Your Customer at Risk will not ask

“Is it Coast Guard Approved”?

Do youknow whoyour clientis turning

to forhelp?

Even highly educated clients are turning to:

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

Nancy’s Story

See more on Nancy and other ClearPoint clients at

www.repaydebt.org

Thank You!