Cambridge Credit Urges Hurricane Victims Not To Overlook Credit Card Bills In the Aftermath of Devastation

Non-Profit Credit Counseling Organization Encourages Residents of Disaster Areas to Call Creditors for Help.

(PRWEB) October 18, 2004 -- Residents from the Gulf Coast to the Mid-Atlantic states have had their lives turned upside down during this years hurricane season. In Florida alone, more than one in five homes have been damaged, and the insurance industry is expecting over 2 million claims to be filed. Some residents find themselves forced to live in hotels, have missed a significant amount of work without pay, and face enormous repair and cleanup expenses. In the midst of these challenges, one important problem has been overshadowed- credit card debt.

Some credit card companies have special plans that they offer cardholders who find themselves caught in a disaster area. These plans can range from allowing consumers to skip a payment to waiving late fees.

Although your credit card payments may seem trivial right now, they are not. Seeking assistance from your creditors can help keep your payments up to date and preserve your credit rating," advises Cambridge Credit Counseling President and CEO Chris Viale. It may not be easy, but staying current will save you thousands of dollars in interest and fees over the life of your credit cards."

It is very important that you take the following steps:

•Call Your Creditors Immediately for Help: Tell them your situation and ask to be enrolled in their disaster relief plan. Make sure you understand the plans requirements and how it will help you. If you have a mortgage, car loan, or any other debt beyond your credit cards, call these lenders as well. Some of them may have plans of their own that can help ease your burden.

•If You Enroll in a Plan, Stick With It: The reason that lenders are willing to offer assistance is to help ensure that your debts will be paid. Missing payments can result in penalties such as late fees and very high interest rates.

•Dont Commit to a Plan that You Cant Afford: Although disaster relief plans are meant to make things easier, some people are suffering a greater hardship than others. If you cannot afford to make payments, explain why. If you have an idea when you can pay, tell your creditors. Committing to an unaffordable plan will not help you.

Credit Counseling Clients

Approximately 9 million consumers seek the assistance of credit counselors every year. Those who have enrolled in debt management programs face a unique set of challenges. Creditors have strict policies that must be followed in order for a credit counseling program to succeed. Making timely payments is the most important thing that these consumers can do to get out of debt. In many cases, a creditor will drop a consumer from a credit-counseling program after only one missed or late payment.

Credit counseling clients who have been impacted by these storms are particularly vulnerable right now." says Mr. Viale. It is vital that they take advantage of any relief available to stay on track. One missed payment can cause their interest rates to jump to well over 20%, making their debt almost impossible to pay off."

The good news is that some creditors have disaster relief policies that can help you stay with your credit-counseling program. It is very important that you call both your counselor and your creditors for assistance. Ideally, your counseling agency can keep things on track for you. However, because there are so many people who have been affected by the recent hurricanes, the best strategy is to be proactive and contact your creditors yourself to make sure they are aware of your situation and to find out what they will do for you.

Cambridge Credit has certified credit counselors available to answer your questions. Call 1-800-313-8686 for advice.

About Cambridge Credit Counseling Corp.

Cambridge Credit Counseling Corp., a 501 (C) (3) Not-for-Profit organization, provides credit counseling, educational assistance and budget planning services to clients throughout the United States. Since its incorporation in 1996, Cambridge Credit has assisted over 2 million consumers. Cambridge Credit is registered with ISO 9001, the standard accepted worldwide for organizational efficiency. For more information about Cambridge Credit, visit www.cambridge-credit.org

Contact: Chris Viale

Cambridge Credit Counseling Corp.

413.821.6919

(m) 413.627.6946

cviale@cambridge-credit.org

# # #