Consumers’ filings for bankruptcy increased 74 percent from June 2007 to June 2008 in the six Central Coast counties from Ventura to Santa Clara, and many other people are struggling with debts and the threat of home foreclosure.

That’s proof that the need for reliable financial counseling services is greater than ever, according to the Consumer Credit Counseling Service (CCCS).

The nonprofit organization, established in 1966, provides credit, debt and budgeting counseling, regardless of the ability to pay.

Patty Guertler, CCCS public relations and education manager, said the sooner consumers get assistance, the better.

“The mortgage crisis has hit everyone hard,” she said, and “we are working hard to reach consumers in need.”

The organization, based in Camarillo, provides services to more than 12,000 households annually in six counties:

Santa Barbara, San Luis Obispo,

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Ventura, Monterey, Santa Cruz and Santa Clara.

The closest offices providing in-person counseling are in Arroyo Grande and

Santa Barbara. The CCCS also has offices in Camarillo, San Jose and Watsonville.

The CCCS had an office in Santa Maria for at least five years, but the office closed more than a year ago, Guertler said.

As a nonprofit, the CCCS provides services regardless of an individual’s ability to pay.

“We are a true nonprofit agency committed to educating local consumers,” she said.

Counseling is provided in person at a CCCS office, at consumers’ homes, by phone or online.

The CCCS provides counseling to all interested local consumers and provides fee waivers for the organization’s services when individuals meet federal guidelines, which include the number of people in the household, annual income and one’s ability to pay.

Beyond that, “sometimes if individuals don’t fall within the guidelines, we can waive fees if management

perceives a need,” Guertler said.

In addition to the 74 percent increase in the number of

consumers filing for bankruptcy in the six counties compared to last year, nationally there has been a 30 percent increase, according to the American Bankruptcy Institute.

“The increased numbers are due to the current economic crisis,” Guertler said.

The federal Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires consumers to attend counseling sessions from a certified agency before and after filing for bankruptcy, according to the U.S. Department of Justice.

The CCCS is certified to provide bankruptcy counseling and to issue the certificate that consumers need to present in bankruptcy court.

“The counseling emphasizes the effects of bankruptcy on a consumer’s life and allows consumers to explore alternatives,” Guertler said.

Nationwide, 40 percent of families spend more than they earn, according to the Federal Reserve Bank.

The CCCS also offers a debt-solver program for people with severe debt and works directly with creditors.

“Creditors agree to reduce interest rates, not apply any more late fees, and work with consumers to lower their monthly payments,” Guertler said. “We have been successful in helping consumers reach negotiations with creditors.”

Individuals must have a minimum of $50 in unsecured debt, most commonly accumulated through credit card purchases, in order to receive assistance.

The average amount of

unsecured debt for CCCS clients is $32,062. Last year,

the CCCS helped more than 3,000 Central Coast households return $13 million to their creditors.

Over the past year, the

CCCS has also seen a 150 percent increase in the number

of consumers seeking counseling about housing, whether they are prospective

homeowners, owners

interested in reverse mortgages or owners facing

foreclosure.

Guertler, who has been with the organization since 2001, said she “was inspired to educate average consumers, who are often misled.”

Some CCCS clients learn about financial management for the first time from the organization.

“I saw how the agency made a change in their lives,” she said. “That’s why I’m still here seven years later.”

To get help

The Arroyo Grande and Santa Barbara offices of the Consumer Credit Counseling Service, staffed by certified counselors, are used for in-person financial counseling by appointment only. The offices do not accept drop-in visits. To make an appointment at either location, call the service’s Camarillo

headquarters toll-free at 1-800-540-2227 from 8 a.m. to 6:30 p.m. Monday through Thursdays, or from 9 a.m. to 4:30 p.m. Fridays.

For more information, call the headquarters or go to the group’s Web site, www.gotdebt.org.

August 3, 2008