It is an anomaly of the nonprofit credit counseling service that its financing comes mainly from the very creditors from whom CCCS is trying to free its 651 clients. They contribute what they call a fair share, generally anywhere from 8 to 12 percent of the monies we disburse back to them. The way it works, a client goes on a debt management plan. We in turn redisburse it out to their creditors. We do see far more bankruptcies.
People are just too overextended.
That, says Rosie Wentworth, is the No. 1 reason people seek help from Consumer Credit Counseling. Now it's simply because they're spending too much money, they're not budgeting, not handling finances appropriately. It's sad, really. I counseled a client recently. It's how we choose to use them.