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The key is to live under your means
5 Minutes with....
October 25, 2007
Atlanta Woman: Are we in a mortgage crisis?
Suzanne Boas:
In my 16 years as president of Consumer Credit Counseling Service, this is the toughest
mortgage market I've ever seen. And most experts predict that the problems we are seeing now are
not even going to peak until fall of 2008.
AW:
So how severe is it?
Boas:
We take calls 24 hours a day from across the nation at 1-888- 995-HOPE. The number of calls
we've received so far this year is up more than 200 percent. Two years ago, we had only four
employees devoted to foreclosure prevention counseling; today, we have more than 40.
AW:
How does Atlanta rate in terms of foreclosures?
Boas:
The number of properties scheduled for foreclosure in recent months has been unprecedented
for metropolitan Atlanta, often more than 5,000 per month. Georgia is among the top five states in
the number of homeowners with past due mortgages.
AW:
What is Consumer Credit Counseling Services of Greater Atlanta?
Boas:
We are one of the largest nonprofit, accredited and bilingual credit counseling agencies in
the country. We expect to serve nearly 400,000 people this year. Our staff provides confidential
financial counseling and education to anyone who needs it. Thanks to our generous contributors, we
are able to offer the majority of our services for free 24 hours a day, seven days a week.
AW:
If someone is experiencing financial problems and is worried about losing their home, what
should they do?
Boas:
Don't lose a minute; get counseling advice immediately. We have a track record of helping
people avoid foreclosure 75 percent of the time when their mortgage payments are delinquent by
three months or less. If they contact us much later than that, it's more difficult to get mortgage
companies to come up with workable options...
AW:
What are some of the signs that one's credit situation is getting out of hand?
Boas:
Making only the monthly minimum payment on your credit cards because you can't pay more, or
using one credit card to pay another. Other common signs are losing sleep worrying about your
financial situation and dodging collection calls. By the time you start failling behind on your
mortgage payment, things are usually spinning out of control.
AW:
What are the biggest misconceptions people have when facing financial crisis?
Boas:
In general, Americans, including Atlantans, are very optimistic
people, which in most circumstances is a good thing. But, being overly optimistic about
finances can get you in big trouble. That's because when a major setback occurs – a job loss,
severe drop in income, medical debt or divorce –people who haven't set aside an emergency fund
often don't have enough savings to pay their bills. Those significant "life" events can cause years
of financial stress.
AW:
Are more people having credit card debt problems or mortgage problems?
Boas:
Inability to pay credit cards has historically been the predominant reason people have turned
to CCCS for counseling. These days, the surprise is how many people have delinquent mortgages. When
you add higher gasoline prices and other bills, many people just don't have enough money to cover
all their obligations.
AW:
How can counseling help?
Boas:
Everyone we counsel gets a complete fiscal checkup. We help them look at their current
spending habits; total up their debts, review their credit report and credit score and build a
spending plan that addresses their individual situation. If they are behind on their mortgage, we
can call their lender to discuss a reasonable plan to get their payments caught up. We also work
with their unsecured lenders to structure more comfortable repayment plans.
AW:
By the time people come to you, is it too late?
Boas:
It's never too late to benefit from objective advice – but the longer people wait, the fewer
options they have. Research shows that 75 percent of people who are delinquent with their mortgage
payments are afraid or embarrassed to call their lender and 50 percent of those going into
foreclosure have had no direct contact with their lender. So I can't stress enough the importance
of reaching out for help as soon as you start to have a problem. One easy place to start is to
check out our web sites,
www.cccsinc.org and
www.cccsenespanol.org.
AW:
Tell us about yourself.
Boas:
Gardening and flower arranging are my creative outlets, and I have a special interest in
growing orchids. I also like to travel to remote places. My husband, Rob, and I just returned from
a trip to the Galapagos Islands and Machu Picchu, Peru. Before I joined the CCCS, I was vice
president of credit and consumer affairs for Macy's South for 16 years.
AW:
What's the secret to financial health?
Boas:
The secret is living beneath your means. That is not as easy as it sounds – it takes
discipline and hard work. You have to set realistic financial goals to accomplish your dreams. And
you have to take control of your daily spending so that if an emergency occurs, you are prepared.
Because you never know when it will rain.
