Consumer Credit of Des Moines -

Childcare 101: How to navigate costs and options

Amanda Reid-Raper — Wed, 20 May 2026 05:00:00 GMT

For many families, childcare is one of the largest monthly expenses, sometimes close to the cost of a mortgage or rent. And unlike other bills, childcare is not always simple to shop for, compare, or plan around.

The average weekly cost of daycare in the Midwest in 2026 ranges from anywhere between $150-$350, while in home nanny care averages much higher from $750 to $1000. Costs vary by experience, location, age of the child, schedule, and type of provider.

For parents trying to work, go to school, or manage a household budget, the process can feel overwhelming. It is not just about finding the most cost-effective option, but finding care that is safe, reliable, available, and financially realistic.

Start with the REAL monthly number:

When comparing childcare options, look beyond the weekly rate. Ask about:

Registration Fees
Supply Fees
Late Pickup Fees
Part-time versus full-time pricing
Vacation or sick-day policies
Whether you pay when your child is absent
Rate increases during the year

A center that looks less expensive at first may not be the best fit once extra costs are included.

Know what assistance may be available:

Families may qualify for childcare assistance depending on income, work status, school enrollment, and household size. In Iowa, Child Care Assistance is available to income-eligible parents who are working, attending school/training, participating in approved programs, or, in some cases, looking for employment.

Iowa families can apply online through a local HHS office or by mail. Iowa HHS notes that income, citizenship, and identity must be verified, and eligibility decisions may take up to 30 days.

Look into employer benefits, including Dependent Care FSA Accounts:

If offered through an employer, a Dependent Care FSA allows families to use pre-tax dollars for eligible childcare expenses like daycare, preschool, before and after school care, and some nanny/babysitting costs.

This will not reduce your actual bill, but it can reduce the taxes paid on the income used to cover those expenses, potentially saving families hundreds of dollars per year, depending on childcare costs and household income.

It’s worth asking your employer about options available during open enrollment.

Compare care like you would any major bill:

Childcare is emotional, but it is also a financial decision. Before committing, families may want to compare:

Center Care
In-Home Daycare
Family Help
Split schedules between parents
Preschool plus wraparound care
Employer childcare benefits
Flexible work options

Sometimes the best solution is a mix of options rather than one perfect answer.

Build childcare into the full household budget:

A childcare payment can affect everything else: groceries, transportation, debt payments, savings, and emergency funds. If the monthly cost creates pressure, it may be time to review the whole budget instead of trying to “make it work” without a plan.

That might include adjusting spending, reviewing debt payments, checking assistance options, or creating a temporary budget while children are younger and care costs are highest.

Final Thoughts: You are not alone

Childcare costs are a major stressor for families across the country. The issue is not simply poor budgeting – it is a real affordability challenge for many working households.

If childcare costs are making it hard to keep up with other bills, Consumer Credit can help you look at the full picture and create a realistic plan. Sometimes, having someone walk you through the number can make the next step feel much less overwhelming.

How to Get Your Free Credit Report and Dispute Errors

Lisa Ohnemus — Thu, 14 May 2026 05:00:00 GMT

Reviewing your credit report is an important step in protecting your financial health. Your credit report shows your credit history, including accounts, payment history, balances, collections, and other financial information. Checking it regularly can help you catch errors or signs of identity theft.

You can get a free copy of your credit reports from Equifax, Experian, and TransUnion by visiting AnnualCreditReport.com. This is the official website for free credit reports. You can also request your reports by calling 877-322-8228.

What to Look For

When reviewing your credit report, look for:

Accounts you do not recognize
Incorrect balances
Payments marked late that were paid on time
Accounts listed more than once
Incorrect personal information
Signs of identity theft

How to Dispute an Error

If you find a mistake, you have the right to dispute it with the credit bureau showing the error. You may also want to contact the company that reported the information, such as a lender, credit card company, or collection agency.

When filing a dispute, include:

Your name and contact information
A clear explanation of what is wrong
The account name and number, if available
Copies of any documents that support your dispute

Credit bureaus generally have 30 days to investigate disputes. If the information is corrected, they will provide the results and may send you an updated copy of your report.

Need Help Understanding Your Credit Report?

Credit reports can be confusing, especially if you are not sure what an account, balance, or status means. If you need help reading your credit report or understanding the next steps, reach out, and we will help you review it.

Final Tip

Check all three credit reports, as the information may not be the same across them. If something does not look right, take action right away and keep copies of everything you send.

Why Families Feel More Financial Pressure in 2026

Amanda Reid-Raper — Mon, 20 Apr 2026 05:00:00 GMT

If you are feeling like money doesn’t go as far as it used to, you are not imagining it.

Across the board, families are facing rising costs in housing, childcare, groceries, and insurance. Even households with stable incomes are feeling stretched and for many the financial margin that once existed has quietly disappeared.

Housing: The Biggest Strain

Whether you are renting or buying, housing continues to take a larger portion of household income. Higher home prices, increased interest rates, and low inventory have made homeownership harder to reach, while rent prices remain high in many areas. For many families, housing alone is enough to reshape their entire budget.

Childcare: 2^nd Largest Expense for Families

Childcare costs have climbed significantly, often rivaling a monthly mortgage payment. For some families, it no longer makes financial sense for both parents to work full-time once childcare is factored in. Others are forced to make difficult trade-offs just to manage this large expense.

Groceries: The Weekly Budget Buster

Grocery bills have steadily increased, and families are noticing it every time they check out. Even when making healthier or more intentional choices, the total is often higher than expected. These small, repeated increases add up quickly over the course of a month.

Insurance: The Silent Budget Buster

Insurance costs (auto, home, and health) have risen quickly with what seems like little warning. These expenses are essential – families do not have the option to cut them out, which means they quietly take up more and more of the budget over time.

BIG PICTURE – THE VIEW FROM ABOVE

What makes this all challenging is that these aren’t optional expenses and when all of them increase at once, many families are navigating a higher cost of living by saving less and sometimes not at all, and/or using credit cards to get through.

If you are feeling pressure, you’re not alone, and you don’t have to navigate it on your own. At Consumer Credit, we work with individuals and families every day to create realistic, manageable plans that bring clarity and confidence back to their finances.

To learn more or schedule a free, confidential appointment, call 800-955-5765 or visit www.consumercredit-dm.com.

How does a debt management plan work?

Lisa Ohnemus — Tue, 07 Apr 2026 05:00:00 GMT

A Debt Management Plan (DMP) is a structured repayment program designed to help individuals manage and repay their unsecured debts. A DMP involves consolidating multiple debts into a single, manageable monthly payment.

Here's a detailed look at how a Debt Management Plan works:

1. Assessment and Enrollment

Financial Assessment: A credit counselor will review your financial situation, including your income, expenses, and the total debt you owe.
Creating a Budget: With your counselor, you will create a realistic budget to cover your essential living expenses while making monthly debt payments.
Debt Evaluation: Our counseling sessions aim to help you find the best solutions to your financial problems. In many cases, our professional advice may be all you need to handle your situation and take control of your debt or spending habits. For some who may be considering bankruptcy, our impartial advice may help them re-affirm that decision. Finally, our debt management programs are a great way for many to pay off their debt, according to their means, in a reasonable time frame.

2. Consolidation of Payments and Negotiation with Creditors

Single Monthly Payment: Instead of paying multiple creditors monthly, you make one consolidated payment to Consumer Credit. Monthly Consumer Credit will distribute the funds to your creditors according to the agreed-upon terms.
Interest Rate Reductions and Stopping Fees: Using a Debt Management Program, we can help you save money by lowering your interest rates, stopping fees, and reducing your monthly payments.

3. Repayment Period

Fixed Term: DMPs typically last 3 to 5 years, depending on the total amount of debt and the negotiated terms.
Regular Monitoring: The credit counseling agency monitors your progress and provides ongoing support and advice.

4. Completion and Aftercare

Debt Paid Off: Once the DMP is complete, your unsecured debts should be paid off.
Credit Impact: Successfully completing a DMP can improve your credit score as you demonstrate consistent, on-time payments.
Financial Education: We offer financial education and resources to help you avoid falling back into debt.

Advantages of a Debt Management Plan

Lower Monthly Payments: You may be able to reduce your monthly payments by consolidating payments and negotiating lower interest rates.
Simplified Payments: Managing a single payment each month can make budgeting easier.
Reduced Stress: Knowing you have a plan to pay off your debts can relieve financial stress.
Avoiding Bankruptcy: A DMP can be an alternative to filing for bankruptcy, which can have more severe long-term effects on your credit.

Eligibility

Unsecured Debts: DMPs typically cover unsecured debts such as credit card debt, personal loans, and medical bills. They do not cover secured debts like mortgages or car loans.

A Debt Management Plan can be useful for getting out of debt and achieving financial stability. Contact our office at 800-955-5765 to get a customized savings and payoff plan for your creditors or schedule an appointment on our website at www.consumercredit-dm.com.

We welcome any additional questions and are excited to assist you in your journey to improve your financial future!

Busy Spring Sports? Here’s How to Avoid the Convenience Spending Trap

Amanda Reid-Raper — Thu, 02 Apr 2026 05:00:00 GMT

When spring sports kick into full gear, life gets busy – fast!

Between practices, games, and running from one place to the next, it’s easy to fall into a routine of grabbing food on the go. Concession stands, gas stations, and drive-thrus become the default – not because you want them, but because you’re tired and it’s easy.

Here’s the truth we see often in credit counseling: it’s not the big expenses that throw people off – it’s the small, repeated ones. A $12 stop here, a $20 dinner there, a few snacks every game night – before you know it, that busy season can quietly cost hundreds of dollars and often end up on a credit card.

The good news? With a little planning, you can take back control without making life harder.

THINK AHEAD NOT PERFECT – this isn’t about cooking gourmet meals, it’s about the asking yourself “what’s the easiest option I can prepare ahead of time?” When food is already packed, you’re less likely to spend out of convenience.

MAKE YOUR OWN GAME DAY GO-TO – one of the simplest shifts is creating a grab-and-go system at home. Keep a small section of your fridge or pantry stocked with: protein bars or shakes, string cheese or meat sticks, fruit, nuts. When it is time to leave, you grab, and don’t have to guess.

EAT BEFORE YOU GO – heading to the field already hungry guarantees a stop. Even a quick snack before you leave can reduce impulse spending, help you avoid overpriced concessions, and keep everyone’s energy steady.

GIVE PERSMISSION-WITH A PLAN – trying to cut everything out completely can backfire, instead, set a boundary: ‘this week we will spend $20 on extra food via concessions/convenience.” This keeps it intentional versus automatic.

PACKING A COOLER CAN SAVE HUNDREDS – for longer game days, packing a cooler is one of the easiest ways to stay on track. Pack simple options like drinks, snacks, sandwich making items and save $15-$30 per outing at least! Over a full season that could be hundreds of dollars back in your pocket.

If you are working on paying down debt or gaining financial stability, these everyday decisions stack up! Not that you are doing anything wrong, but convenience spending adds up significantly. When you take control of just a few habits like this, you create: breathing room in your budget, less reliance on credit cards, more confidence in your plan.

My final thoughts: you do not have to do this perfectly. Even cutting back by half can make a meaningful difference. At the end of the day, it’s not about skipping the snack, it’s about building habits that support the life (and financial future) you’re working toward.

Need help making your budget work in real life?
Consumer Credit of Des Moines offers free and confidential budget and debt counseling. We are here to help you build a plan that fits your life.

Call 800-955-5765 or visit www.consumercredit-dm.com

The Money Reset: Getting Back on Track After a Tough Year

Lisa Ohnemus — Mon, 17 Nov 2025 06:00:00 GMT

Some years are just hard on your wallet. Rent goes up, groceries cost more, the car breaks down, and suddenly, the credit cards are doing a lot of heavy lifting.

If that sounds familiar, you are not alone. A rough financial year does not mean you are bad with money. It simply means it is time for a reset.

A “money reset” is just a fresh start. Take a look at where things stand, create a simple plan, and take small steps forward. You do not have to do it perfectly. You just have to start.

Step 1. Know where you stand

First, you need a clear picture of what is going on.

Write down your take-home income for a normal month.
List your essential expenses, such as housing, utilities, groceries, transportation, insurance, and medical costs.
List your debts. Include each creditor, balance, and minimum payment.

Seeing everything in one place can feel uncomfortable, but it is also a relief. You are not guessing anymore. You can work with real numbers.

Step 2. Look back without beating yourself up

Instead of asking “What was I thinking?” try asking “What can I learn from this?”

Look at last year and ask:

Where did most of my money go?
Were there certain months that were especially tight, and why?
Were there surprise expenses I can plan for this year?
Are there patterns, like frequent takeout or online shopping, when stressed?

You are not looking for perfection. You're being honest, so you can make changes that fit your real life.

Step 3. Create a budget that actually fits

Next, build a budget based on your current situation, not where you wish you were.

A simple way to think about it:

Cover essentials first.
Set aside a small amount for savings, even if it is only $ 10 or $ 20 a month.
Then, focus on debt payments and other expenses.

If the math does not work, that is a signal, not a failure. It may mean it is time to cut some expenses, find ways to increase your income, or explore options for managing your debt.

A good budget:

Gives every dollar a job.
It is realistic enough that you can stick with it.
Leaves a little room for life to happen.

Step 4. Clean up your bills and accounts

When money has been tight, things can feel scattered. A little organizing can make life feel calmer.

You might:

Set up automatic payments for key bills, if your budget allows.
Ask creditors to move due dates closer to your paydays.
Cancel subscriptions you are not using.
Remove saved cards from online shopping accounts if they tempt you to spend.

These are small steps, but they can reduce late fees, stress, and surprise charges.

Step 5. Make a strong plan for your debt

Debt is often the most significant aspect of a challenging financial year. The good news is that you do not have to figure it out on your own.

For many individuals with multiple credit cards and other unsecured debts, a debt management program can be one of the most beneficial tools.

With a debt management program through a nonprofit credit counseling agency:

You make one monthly payment to the agency.
The agency sends payments to your creditors on your behalf.
In many cases, interest rates are reduced, and late fees can be stopped.
You receive ongoing support, reminders, and encouragement.

It is neither a new loan nor a debt settlement. It is a structured way to repay what you owe in a more manageable manner, often in a shorter period than doing it on your own.

Other options, like the snowball or avalanche methods, can still be useful:

The snowball method focuses on paying off the smallest balance first for quick wins.
The avalanche method targets the highest interest rate first to save more on interest.

These can work well if you can stay organized and keep up with all the individual payments.

If you are feeling overwhelmed or worried about interest and fees, discussing a debt management program can provide a more straightforward, calmer path forward.

Step 6. Build a small safety net

Even a tiny cushion can make a big difference.

You can:

Start an emergency fund, even if it is only $100 to $300 at first.
Set aside money for unexpected expenses, such as car repairs or back-to-school costs.
Review your insurance so you are not underinsured.

Think of this as “future you” protection. It is there to keep you from needing a credit card every time something goes wrong.

Step 7. Take care of yourself, too

Money stress is exhausting. It can impact your sleep, mood, and relationships.

While you work on your reset, try to:

Talk to someone you trust about what you are dealing with.
Focus on small wins, like making one phone call you have been putting off or cooking at home one extra night.
Schedule one weekly “money check-in,” instead of checking your accounts all day and feeling anxious.

You deserve kindness from yourself, even when you are navigating tough situations.

When to reach out for help?

It might be time to talk with a credit counselor if:

You are using credit cards to cover basics like gas or groceries.
You can only afford minimum payments month after month.
You are receiving collection calls or past-due notices.
You feel stuck and do not know what else to try.

Take it one step at a time. Get clear on where you stand, make a simple budget, organize your bills, and choose a plan for your debt. Celebrate the small steps. They add up.

If you would like support, Consumer Credit of Des Moines offers free budget and debt counseling, along with trusted debt management program. We are here to listen and to help you build a plan that fits your life.

You can call us at 800-955-5765 or visit www.consumercredit-dm.com to learn more or request an appointment. Your money reset does not have to be perfect. It just has to begin.

Simple Ways to Save on Your Holiday Budget

Lisa Ohnemus — Thu, 23 Oct 2025 05:00:00 GMT

The holidays are a special time, but the extra spending can sneak up quickly. A little planning ahead can make the season feel joyful instead of stressful. Here are a few practical ways to keep your budget in check without giving up the fun.

Start with a spending limit
Think about what you can comfortably afford this year and set a total amount for your holiday spending. Then break it down into gifts, food, travel, and anything else you expect to buy. Having a number in mind helps you make clearer choices when you start shopping.

Write down your gift list
Before you head to the store or shop online, make a list of who you are buying for and what you plan to spend on each person. It is much easier to stay on track when you avoid last-minute purchases.

Use cash or debit instead of credit
Paying with cash or a debit card limits overspending and prevents a large credit card bill from following you into the new year. If you shop online, a prepaid card can help you stay within your limit.

Consider simple or handmade gifts
Some of the most meaningful gifts are personal ones. A framed photo, a homemade treat, or something hand-crafted can feel more thoughtful than a store-bought item.

Be mindful of the little extras
Seasonal coffees, decor, or extra trips through the drive-thru can add up faster than expected. Cutting back on just a few of these small expenses can free up room in your holiday budget.

Plan ahead for next year
Once the holidays are over, you can start setting aside a small amount each month for next season. Even twenty dollars a month adds up and can make December much less stressful.

Financial peace of mind is an important gift to give yourself. If you would like help creating a holiday spending plan or a year-round budget, our certified credit counselors are here to help. Contact Consumer Credit of Des Moines at 515-287-6428 or 800-955-5765, or visit us at www.consumercredit-dm.com.

Behind the Scenes: How We Work with Creditors on Your Behalf

Lisa Ohnemus — Tue, 15 Jul 2025 05:00:00 GMT

When you join a debt management program with Consumer Credit of Des Moines, one of the biggest benefits is that you don’t have to handle your creditors yourself. We take care of that for you and help reduce the stress of managing multiple accounts.

Here’s what happens after you enroll:

1. We reach out to your creditors

Once your accounts are added to the program, we contact each creditor and send a proposal. This includes a new payment plan based on your budget, often with lower interest rates, waived fees, and one monthly payment made through us.

2. We work to get you the best terms

Many creditors have guidelines for working with debt management programs, but we still do our part to secure the most manageable repayment terms possible.

3. We simplify your payments

Instead of keeping track of multiple bills, you make one monthly payment to us. We divide it and send it to your creditors. This helps you stay organized and avoid missed payments.

4. We monitor your progress

We keep track of how your plan is going. If your income changes, we’ll go over your options and adjust if needed.

5. We're here to support you

Whether you have questions about a creditor’s response or need help reading a statement, we're just a phone call or email away.

Helping You Move Forward

Managing debt can feel overwhelming, but you don’t have to navigate it by yourself. We’re here to guide you, handle the details, and support your progress every step of the way.

If you're considering a debt management plan, call us at 800-955-5765 or schedule a free consultation online at www.consumercredit-dm.com. We’re ready when you are.

Don’t Let College Costs Catch You Off Guard: Plan Ahead with These Tips

Teresa Baumann — Fri, 02 May 2025 05:00:00 GMT

Congratulations on making it to high school graduation! It’s such an exciting milestone, and heading into the first year of college is going to be a huge adventure for your child.

When it comes to finances, there’s a lot to think about, but it doesn’t have to be overwhelming. Here’s a breakdown of what you can expect and some tips for helping your child manage their money in college:

1. Tuition and Fees

Upfront costs: Tuition is probably the biggest expense, but there are also additional fees (e.g., lab fees, activity fees, or technology fees). If you’ve received any financial aid, scholarships, or grants, these will help offset the cost. Just make sure you understand how much is covered.
Payment plans: Some schools allow you to break down tuition payments into smaller, more manageable installments over the semester. Check with your school to see if that’s an option.

2. Room and Board (Housing and Meals)

On-Campus vs. Off-Campus: If your student is living on campus, room and board are usually included in the tuition bill. If they live off-campus, they will need to budget for rent, utilities, and groceries.
Meal plans: If your student is on campus they might have a meal plan. Sometimes meal plans cover a fixed number of meals per week or a dollar amount for the dining hall so they might need extra funds for eating out or ordering in.

3. Books and Supplies

Textbooks: College books can be ridiculously expensive and this cost usually comes up the first few weeks of school. A lot of courses now have online resources instead of traditional textbooks, so your student should be sure to check with their professors.
Other supplies: Don’t forget about things like notebooks, software for assignments, and other materials that may be needed for classes.

4. Personal Expenses

Transportation: If they’re not living on campus, they may need to budget for a car (gas, insurance, parking) or public transportation. If they leave their car at home, check for a potential discount on your auto insurance policy.
Entertainment & Socializing: There will be plenty of things to do on and off-campus, but it’s easy to get carried away spending money on outings. Help your student set a budget for fun activities (e.g., movies, eating out, shopping) so it doesn’t sneak up on them (and you).
Health Insurance: Some schools include health insurance in their fees, but not all. If they are not covered through your policy, they may need to sign up for student health insurance.

5. Earning Extra Income

Part-time job: Many students get a part-time job to help cover costs. They can check with their school for on-campus job opportunities (like in the library, dining hall, or student center) or look for flexible off-campus work. Keep in mind, balancing work and study is important to avoid burnout.

6. Student Loans

If your child has student loans, it’s important to understand how they work. Be sure to help them keep track of the amount they owe and what the repayment schedule will look like after graduation. For federal student loans, they typically won’t have to start repaying them until after they finish school.

7. Budgeting & Saving

Track your spending: It can be easy to overspend without realizing it. Help your student set a weekly spending limit that is realistic for them to stick to.
Emergency fund: It’s always a good idea to have a buffer in case something unexpected comes up.

8. Scholarships, Grants, & Financial Aid

Apply for scholarships: Even after they’ve started college, there are still plenty of scholarships available. Don’t miss out on them!
Check in with the financial aid office: If circumstances change (for example, they get a job or your income changes), your financial aid package may be adjusted. Keep an open line with the financial aid office.

9. Credit and Debit Cards

Credit card management: If they don’t already have one, they may be offered a credit card in college. If they get one, have them try to keep it to a minimum and always pay the balance in full each month to avoid high-interest rates. Building good credit early on can help them in the future.
Debit card: It’s smart to have a debit card for everyday expenses. Your student will want to be mindful of any bank fees, ATM charges, or monthly maintenance fees.

10. Money Mindset

Don’t stress too much: Help your child think about how they want to manage their finances in their first year. Setting a weekly spending limit along with their own bank account can be helpful first steps.

With a bit of planning and open conversations about money, you can help your student start college with confidence and set a stage for lifelong financial habits.

10 Simple Habits to Improve Your Finances in 2025

Lisa Ohemus — Tue, 14 Jan 2025 06:00:00 GMT

Achieving financial stability doesn't have to involve drastic changes. Small, consistent actions can significantly improve your financial health over time.

Here are ten simple habits to adopt in 2025 that can help you achieve your financial goals:

1. Track Your Spending

Understanding where your money goes is the first step to managing it. Keep a record of your daily expenses using a notebook, spreadsheet, or budgeting app.

Quick Tip: Review your spending at the end of each week to identify areas where you can cut back. If you need additional help with your budget, contact Consumer Credit to talk with a certified credit counselor.

2. Automate Savings

Set up automatic transfers to your savings account each time you get paid. Even small, regular contributions add up over time.

Pro Tip: Start with 10% of your income if possible, and adjust as needed.

3. Review Subscriptions and Memberships

Cancel any subscriptions or memberships you no longer use. These small monthly fees can quickly add up and eat into your budget.

Action Step: Reevaluate this monthly to see what subscriptions you are using.

4. Create Financial Goals

Define short-term, medium-term, and long-term financial goals. Having a clear purpose for your money can motivate you to save and spend wisely.

Example: Saving for a vacation, building an emergency fund, or paying off credit card debt.

5. Pay Bills on Time

Stay on top of your finances and safeguard your credit score by setting up reminders or enabling automatic payments for recurring bills. If you're having difficulty managing your payments or need assistance creating a plan to tackle your debt, reach out to a credit counselor at Consumer Credit of Des Moines.

Helpful Hint: Align bill due dates with your paycheck schedule to simplify the process.

6. Spend Mindfully

Think before you make a purchase. Ask yourself if it aligns with your goals or if it's an impulse buy.

Mindful Practice: Use the 24-hour rule for non-essential purchases: wait a day before deciding.

7. Meal Plan and Cook at Home

Eating out can drain your budget quickly. Save money by planning meals and preparing them at home.

Bonus: Cooking at home can also be healthier and a great way to bond with family.

8. Build an Emergency Fund

Start small by saving $500 to $1,000 to cover unexpected expenses, then aim for three to six months' worth of essential expenses.

Step-by-Step: Use windfalls like tax refunds or bonuses to jumpstart your fund.

9. Negotiate Your Bills

Contact internet, phone, or insurance service providers to see if you qualify for discounts or lower rates.

Negotiation Tip: Research competitors' pricing to strengthen your case.

10. Invest in Yourself

Expand your finance knowledge by reading books, taking online courses, or attending workshops.

Implementing even a few of these simple habits can profoundly impact your finances over the course of the year. Remember, consistency is key. If you need additional support, our credit counseling service is here to guide you toward a brighter financial future.

To speak to a certified credit counselor, contact our office at 800-955-5765 or schedule an appointment on our website at www.consumercredit-dm.com.

We welcome any additional questions and are excited to assist you in your journey to improve your financial future!

How to Choose a Credit Counseling Agency You Can Trust

Lisa Ohnemus — Tue, 22 Oct 2024 05:00:00 GMT

How to Choose a Credit Counseling Agency You Can Trust

Selecting a trustworthy credit counseling agency is crucial for anyone seeking help with financial challenges. With numerous organizations claiming to offer assistance, it’s essential to ensure you choose a reputable agency that aligns with your needs. Here’s a guide to help you make an informed decision.

1. Look for Accreditation and Certification

Choose an agency accredited by recognized organizations such as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). These accreditations ensure that the agency meets specific standards for quality and ethics in financial counseling.

2. Check for Non-Profit Status

Opt for non-profit credit counseling agencies. Non-profits are typically more focused on providing support rather than making a profit from their services. They often offer lower fees and a more transparent fee structure compared to for-profit counterparts.

3. Research Their Reputation

Read reviews and testimonials from past clients to gauge the agency’s reputation. Websites like the Better Business Bureau (BBB) provide insights into customer satisfaction and any complaints filed against the agency. Look for agencies with a solid track record of helping clients achieve their financial goals.

4. Evaluate Their Services

A reputable agency should offer a range of services tailored to your needs. This includes:

- Free initial consultations

- Budgeting assistance

- Debt management plans

- Financial education resources

Make sure the agency provides a comprehensive approach to financial counseling rather than just focusing on debt management.

5. Ask About Fees and Costs

Understand the agency’s fee structure before committing. Most non-profit agencies charge low fees, but clarifying any potential costs associated with their services is essential. Be wary of agencies that demand large upfront fees or have hidden charges.

6. Verify Their Counselors’ Qualifications

Inquire about the qualifications and certifications of the counselors. Certified credit counselors should have undergone specific training and adhere to ethical guidelines. Counselors should be able to explain complex financial concepts clearly and guide you without pressure to enroll in specific programs.

7. Trust Your Instincts

Choose an agency that makes you feel comfortable and respected. A good credit counseling agency should listen to your concerns, answer your questions thoroughly, and never rush you into making decisions. Trust your instincts about their professionalism and willingness to help you.

Finding a trustworthy credit counseling agency can significantly impact your financial well-being. By conducting thorough research and considering the factors outlined above, you can make a confident decision that sets you on the path to financial recovery.

Contact our office at 800-955-5765 or schedule an appointment on our website at www.consumercredit-dm.com to speak to a certified credit counselor.

We welcome any additional questions and are excited to assist you in your journey to improve your financial future!

How to Read Your Credit Card Statement: A Quick Guide

Lisa Ohnemus — Fri, 16 Aug 2024 05:00:00 GMT

How to Read Your Credit Card Statement: A Quick Guide

Understanding your credit card statement is crucial for managing your finances effectively. Here's a simple guide to help you navigate the key sections:

1. Statement Date: This is the date your statement was generated. Transactions after this date will appear on the following statement.

2. Payment Due Date: The date by which you must make at least the minimum payment to avoid late fees and potential damage to your credit score.

3. Credit Limit: The maximum amount you're allowed to borrow. Keep your balance well below this limit to maintain a healthy credit utilization ratio.

4. New Balance: The total amount you owe as of the statement date, including any purchases, fees, or interest.

5. Minimum Payment: The smallest amount you can pay to keep your account in good standing. Paying only this amount will cost you more in interest over time.

6. Transaction Summary: This section lists all your purchases, payments, fees, and interest charges during the billing cycle. Review this carefully for any unfamiliar charges.

7. Interest Charges: If you carry a balance from month to month, this is where you’ll see the interest you're being charged. Paying more than the minimum due or the balance in full can help you avoid these costs.

8. Rewards Summary: If your card offers rewards, this section shows how many points, miles, or cash back you’ve earned.

Regularly reviewing your credit card statement allows you to spot errors, monitor your spending, and make informed decisions about managing your debt. Understanding your financial statements is a key step towards better financial health.

If you need help with your debt, contact us at 800-955-5765 or schedule an appointment online at www.consumercredit-dm.com.

The Importance of Financial Literacy

Lisa Ohnemus — Mon, 22 Jul 2024 05:00:00 GMT

The Importance of Financial Literacy

Financial literacy is understanding and effectively using various financial skills, including personal financial management, budgeting, and investing. It is a crucial life skill that can profoundly impact your overall well-being. In today's complex financial landscape, being financially literate is more important than ever. Here’s why financial literacy matters and how it can benefit you.

Understanding Financial Literacy

Financial literacy encompasses a range of skills and knowledge, including:

1. Budgeting: Knowing how to create and stick to a budget helps you manage your income and expenses, ensuring you live within your means.

2. Saving: Understanding the importance of saving for short-term needs and long-term goals, such as retirement, can help you build financial security.

3. Debt Management: Knowing how to manage and reduce debt effectively can prevent financial stress and improve your credit score.

4. Investing: Understanding investment principles can help you grow wealth over time and achieve financial independence.

5. Financial Planning: A comprehensive financial plan that includes goals, risk management, and estate planning can provide a roadmap for your financial future.

Why Financial Literacy is Important

1. Empowers Better Decision-Making: Financial literacy equips you with the knowledge to make informed decisions about your money. Whether choosing the right credit card, buying a home, or investing in the stock market, being financially literate helps you weigh the pros and cons and make choices that align with your financial goals.

2. Reduces Financial Stress: Money is a leading cause of stress for many people. Understanding how to manage your finances can alleviate this stress by giving you control over your financial situation. With the proper knowledge, you can create a budget, save for emergencies, and avoid unnecessary debt.

3. Prepares for Emergencies: Life is unpredictable, and financial emergencies can arise anytime. Being financially literate helps you build an emergency fund and create a cushion that can protect you during tough times, such as job loss or unexpected medical expenses.

4. Improves Quality of Life: Financial literacy can lead to a better quality of life. When you know how to manage your money effectively, you can achieve financial goals such as homeownership, higher education, and retirement. It also allows you to enjoy life without worrying about economic instability.

How to Improve Financial Literacy

1. Educate Yourself: Take advantage of the numerous resources available to improve your financial knowledge. Books, online courses, webinars, and financial news websites offer valuable information on various financial topics.

2. Seek Professional Advice: Consider consulting with financial advisors or credit counselors who can provide personalized advice and guidance tailored to your specific financial situation.

3. Use Financial Tools: Use budgeting apps, financial planning software, and other digital tools to manage your money effectively. These tools can provide insights into your spending habits, help you track your progress, and keep you on track with your financial goals.

4. Practice Financial Skills: Put your knowledge into practice by creating a budget and setting savings goals. The more you apply your financial literacy skills, the more confident and competent you will become.

Financial literacy is a vital skill that can significantly impact your life. It empowers you to make informed decisions, reduces financial stress, and improves your overall quality of life. By investing time and effort into becoming financially literate, you can achieve financial stability and build a secure future for yourself and your family. Consumer Credit of Des Moines is here to support you on your journey to financial literacy. Contact us today for personalized advice to help you master your budget and achieve your financial goals.

Summer Fun That Won’t Break the Bank

Teresa Baumann — Thu, 20 Jun 2024 05:00:00 GMT

Summer Fun That Won’t Break the Bank

Summer is here! The days are longer, the pools are open and the kids are out of school. We all want to have a little extra fun in the summer, but what if the extra money isn’t there?

Check out these options for fun that are low-cost or free!

Visit your local library for books and movies. Bring your kids to a story-time or special event the library is hosting.

Check to see if your local library has an Adventure Pass to get into local attractions for free (West Des Moines Iowa Residents: Adventure Pass)

Go swimming in a lake close to home. Pack snacks and lunches.
Find a new park(s) to visit
Go hiking on a scenic trail
Go for a long bike ride
Take your young kids to feed ducks/geese at a nearby pond.
Make ice cream sundaes with fun toppings at home

The options are endless for fun summer activities that will not break the bank! If you have kids, get them involved in the process as well. Write out all the ideas you can think of and try to do at least one each week.

Happy Summer!

How does a debt management plan work?

Lisa Ohnemus — Wed, 12 Jun 2024 05:00:00 GMT

Schedule an appointment

Here's a detailed look at how a Debt Management Plan works:

1. Assessment and Enrollment

Financial Assessment: A credit counselor will review your financial situation, including your income, expenses, and the total debt you owe.
Creating a Budget: With your counselor, you will create a realistic budget to cover your essential living expenses while making monthly debt payments.
Debt Evaluation: Our counseling sessions aim to help you find the best solutions to your financial problems. In many cases, our professional advice may be all you need to handle your situation and take control of your debt or spending habits. For some who may be considering bankruptcy, our impartial advice may help them re-affirm that decision. Finally, our debt management programs are a great way for many to pay off their debt, according to their means, in a reasonable time frame.

2. Consolidation of Payments and Negotiation with Creditors

Single Monthly Payment: Instead of paying multiple creditors monthly, you make one consolidated payment to Consumer Credit. Monthly Consumer Credit will distribute the funds to your creditors according to the agreed-upon terms.
Interest Rate Reductions and Stopping Fees: Using a Debt Management Program, we can help you save money by lowering your interest rates, stopping fees, and reducing your monthly payments.

3. Repayment Period

Fixed Term: DMPs typically last 3 to 5 years, depending on the total amount of debt and the negotiated terms.
Regular Monitoring: The credit counseling agency monitors your progress and provides ongoing support and advice.

4. Completion and Aftercare

Debt Paid Off: Once the DMP is complete, your unsecured debts should be paid off.
Credit Impact: Successfully completing a DMP can improve your credit score as you demonstrate consistent, on-time payments.
Financial Education: We offer financial education and resources to help you avoid falling back into debt.

Advantages of a Debt Management Plan

Lower Monthly Payments: You may be able to reduce your monthly payments by consolidating payments and negotiating lower interest rates.
Simplified Payments: Managing a single payment each month can make budgeting easier.
Reduced Stress: Knowing you have a plan to pay off your debts can relieve financial stress.
Avoiding Bankruptcy: A DMP can be an alternative to filing for bankruptcy, which can have more severe long-term effects on your credit.

Eligibility

Unsecured Debts: DMPs typically cover unsecured debts such as credit card debt, personal loans, and medical bills. They do not cover secured debts like mortgages or car loans.

We welcome any additional questions and are excited to assist you in your journey to improve your financial future!

Debunking Myths About Debt Management Plans

Lisa Ohnemus — Tue, 21 May 2024 05:00:00 GMT

Debunking Myths About Debt Management Plans

Debt management plans (DMPs) are a popular tool for individuals looking to regain control of their finances. However, misinformation about them can prevent people from taking advantage of these beneficial programs. Let's debunk some of the most common myths surrounding debt management plans.

Myth 1: Debt Management Plans are the Same as Debt Settlement

Reality: Debt management plans and debt settlement are not the same. A DMP involves working with a credit counseling agency to consolidate and manage your debts, making one monthly payment to the agency, which then pays your creditors. In contrast, debt settlement involves negotiating with creditors to reduce the total debt owed, which can significantly damage your credit score and result in potential tax liabilities.

Myth 2: Enrolling in a Debt Management Plan Will Ruin Your Credit Score

Reality: While enrolling in a DMP might cause a temporary dip in your credit score, the long-term impact is generally positive. Your credit score can improve as you make consistent payments and reduce debt. Moreover, creditors often view being on a DMP more favorably than missing payments or defaulting on your debts.

Myth 3: Debt Management Plans are Only for People with Severe Debt Problems

Reality: DMPs are not exclusively for those in severe financial distress. They suit anyone struggling to manage their debts and seeking a structured way to pay them off. Whether you have a moderate or significant debt, a DMP can help you create a manageable repayment plan.

Myth 4: You Can’t Use Credit While on a Debt Management Plan

Reality: While it's true that you'll typically need to stop using credit cards included in the DMP, this doesn't mean you can't use credit at all. Many people on DMPs find they can still use other forms of credit, such as car loans or mortgages, as long as they demonstrate responsible financial behavior.

Myth 5: Debt Management Plans are Expensive

Reality: Most reputable credit counseling agencies charge modest fees and offer free initial consultations. The cost of a DMP is usually far less than the potential savings from reduced interest rates and waived fees negotiated by the agency. Additionally, the benefits of having a structured plan to pay off your debt often outweigh the nominal fees.

Myth 6: Debt Management Plans are a Scam

Reality: While fraudulent companies exist, many legitimate and non-profit credit counseling agencies offer reputable debt management plans. Researching and working with a certified and accredited agency ensures you receive legitimate help.

Myth 7: You Can't Get Out of a Debt Management Plan Once You Start

Reality: Enrolling in a DMP is voluntary; you can leave the program anytime. However, it's important to consider the consequences of doing so, such as losing the benefits of negotiated interest rates and fees. Most agencies will work with you to adjust your plan if you encounter financial difficulties.

Myth 8: Debt Management Plans Solve All Financial Problems

Reality: While a DMP can be a powerful tool for managing and paying off debt, it's not a cure-all. Successful debt management also requires a commitment to changing spending habits and creating a sustainable budget. It’s essential to combine a DMP with broader financial education and planning.

Debt management plans (DMPs) are valuable resources for individuals looking to regain control over their financial lives. By debunking these myths, we hope to provide a clearer understanding of what DMPs can offer and how they can be effectively utilized. If you’re considering a DMP, contact us at 800-955-5765 to speak to a credit counselor. You can also schedule an appointment at www.consumercredit-dm.com.

Mental Health Awareness Month

Lisa Ohnemus — Thu, 09 May 2024 05:00:00 GMT

Mental Health Awareness Month provides an opportunity to focus on the various aspects of well-being, including financial health, which can significantly impact your overall mental wellness. Managing finances effectively can reduce stress and anxiety and improve your quality of life. One strategy for managing finances and addressing debt is to use a debt management program (DMP). Here are some key points to consider about DMPs and how they can support your mental health:

What Is a Debt Management Program (DMP)?

A debt management program is a structured repayment plan designed to help you pay off your unsecured debts (e.g., credit cards and personal loans). Consumer Credit of Des Moines is a non-profit agency that has been in business since 1987. You will work with a counselor to create a plan to repay your debts.

How a DMP Works:

1. Credit Counseling: You'll begin by working with a credit counselor who will review your financial situation and

help you understand your options.

2. Create a Plan: The counselor will work with you to create a budget and a debt repayment plan. This plan may

involve negotiating with your creditors to reduce interest rates and monthly payments.

3. Consolidate Payments: Instead of making multiple payments to different creditors, you'll make a single

monthly payment to the credit counseling agency. The agency will then distribute the funds to your

creditors according to the agreed-upon plan.

4. Regular Payments: Consistent, on-time payments can help you reduce your debt over time and

potentially improve your credit score.

5. Support and Education: Credit counseling agencies often provide ongoing support and financial education to

help you manage your finances effectively.

Benefits of a Debt Management Program:

• Lower Interest Rates: Negotiations with creditors can lead to reduced interest rates, saving you money over

time.

• Simplified Payments: Consolidating payments into one monthly payment makes budgeting easier and can help

you stay on track.

• Debt Reduction: A structured repayment plan can help you pay off debt more efficiently and potentially

improve your credit score.

• Stress Reduction: Managing your debt more effectively can alleviate financial stress and anxiety.

Considerations:

• Cost: Some DMPs may have fees associated with them. Be sure to understand the costs before enrolling.

• Commitment: A DMP usually requires a commitment of three to five years to complete, so be prepared for the

long-term process.

• Credit Impact: While a DMP can help improve your credit score over time, enrolling in one may temporarily

impact your score. Consider the long-term benefits versus the short-term impact.

Tips for Managing Finances and Mental Health:

• Communicate: Openly discuss your financial concerns with your partner, family, or friends for support and

advice.

• Stay Informed: Stay educated about your finances and monitor your progress regularly.

• Practice Self-Care: Maintain a healthy work-life balance and engage in activities that reduce stress and promote

relaxation.

• Seek Professional Help: If you're struggling with your mental health, consider reaching out to a therapist or

counselor for support.

Incorporating a debt management program into your financial plan can help you regain control of your finances and improve your overall well-being.

www.consumercredit-dm.com

800-955-5765

What should I do with my tax refund?

Teresa Baumann — Tue, 16 Apr 2024 05:00:00 GMT

Tax season is officially over. You may have received a refund or you may have owed some money. If you received a refund, that is great news. But, what should you do with the money?

You may be tempted to go buy something you’ve been wanting for a while. Or maybe you are thinking about planning a summer vacation and using the money for that. While these things can be okay to spend your money on, there may be some financial needs that can be taken care of as well.

Do you have credit card debt that could be paid off?
Do you have at least $1,000 in an emergency savings account?
Do you have any medical debt that could be paid off?

The financial needs are not as fun to spend money on, but they can relieve a lot of stress once they are paid.

A balanced approach can work well for most people. Use some of your tax refund for fun and use some towards savings/debt reduction. It will give you the best of both worlds!

**Please note that if you receive a refund greater than $1,000, you may want to adjust your W4 with your employer so less taxes are being taken out throughout the year. This will increase your paychecks every month!

A Tale of Two Consumers

Melissa W — Tue, 07 Mar 2023 06:00:00 GMT

Client A gets an official looking “ad” in the mail. The company knows about how much debt he has, and the letter makes big promises about how he can pay off his credit cards with no interest and for just half the amount owed. The fancy letter says that this “official” program is available to anyone with over $10,000 in debt, and all he must do is call, and the representatives at the Debt Settlement Company can make this magic happen.

Client B has a friend that used Credit Counseling, and the friend shared how much she saved on interest while balancing her budget. The friend explained that it was hard work (not a magic wand) to dig out of debt, but that the lowered interest charges, one monthly payment, and the support of the credit counselor all helped her out immensely.

Client A calls and talks to a representative at the Debt Settlement Company, as he is at his wits end with the credit card debt that he has paid on for years. After a conversation about all the positives of the program and a 32-page contract, he is on his way to being debt free.

Client B calls and schedules an appointment to meet with a credit counselor for an appointment, as she is at the end of her rope with her credit card debt, medical bills, and collection accounts. After her hour-long appointment which covers her budget, debts, and how the program works, the pros & cons, a review of her creditor concessions, and a Debt Management Plan agreement, she is on her way to being debt free.

How will each program affect these consumers though? Will their road to debt freedom be the same? Will one have smooth sailing while the other has rough waters? The processes sound kind of similar, and for the average consumer, one may sound much better than the other. Here is some information to make an informed decision.

Client A chose Debt Settlement. Here is a general explanation of how that works:
The Debt Settlement Company will require the consumer to stop paying his creditors and make payments into a savings account. Fees and interest charges will continue to add up on his debts, as payments are not being made, and the accounts are falling delinquent resulting in negative credit reporting. This process will cause the balances to increase until they are charged off. Once an account has fallen severely delinquent, the Debt Settlement Company will reach out, and they will attempt to negotiate a settlement less than the full balance using the funds in the client’s savings account. This process can take a few years depending on debts owed. The fees associated with it are usually high. Depending on the local and state laws, they could be 20-25% of the enrolled debt, and that is paid to the for-profit Debt Settlement Company for their services. Income taxes will generally be owed on his discharged debt over a certain dollar amount. Not all creditors will settle on his outstanding debts.

Client B chose Debt Management/Credit Counseling. Here is a general explanation of how that works.
The Credit Counseling Company will set up a repayment program for the consumer. This plan will have set scheduled payments that the creditors will accept based on her balances and individual creditor policies. In return for regular monthly payments through a Debt Management Plan, most of her creditors will offer interest rate concessions which will save her thousands on finance charges allowing her to pay off her debts sooner than on her own. Each month, she will make a payment to the Credit Counseling Company, the funds are put into a trust account for the benefit of the creditors and disbursed to creditors on a set monthly date. As long as the client makes her payments, the accounts stay current, and the creditors will continue to report as such. The client will continue to receive monthly statements from her creditors, so that she can review the progress of the plan. The fees paid to a non-profit credit counseling agency are generally low and based on the monthly payment to the creditors as well as the state the client lives in. This process will take 3-5 years depending on the amounts owed. There are no tax ramifications as full balances are paid back. The credit cards will be closed to further charges. Not all creditors work with credit counseling, but many do.

Getting out of debt is hard work and, and it takes time. Being in debt is stressful, and some companies prey on that. Make an informed decision on debt relief. If something sounds too good to be true, read the fine print, ask questions, check online reviews and the local Better Business Bureau.

Beware of Scams

Melissa Winger — Fri, 11 Mar 2022 06:00:00 GMT

Sometimes a scam is blatant. A fake company calls or emails and tries to gain financial information. In those cases, it’s easy to hang up or just delete. Other times, the scam is harder to uncover. It could be someone pretending to be a company that we do business with. It could be an online relationship that started innocently. That so called “romance-scam” consists of the trusting, innocent person being persuaded into wiring funds, giving out credit card or bank information or purchasing gift cards for the other party repeatedly. Another scam is perpetrated under the guise of a loved one needing help. A person calls stating a loved one is in jail, and they need your banking information, so they can pay the fine or bail. Other scams are related to fraudsters bilking people out of gift card information under the guise that they are owing a tax or penalty or to earn a sweepstakes of some kind by paying a fictional “fee”. There are online merchandise scams, money order scams, and many others. The best way to protect yourself is to be weary and trust your gut. If you feel something is off, it’s OK to hang up, or ask for a phone number to call back so you can verify the information. Remember these tips for yourself, and check on the most vulnerable in your family. Consumers that may not be as internet savvy, or that are lonely, can be easy prey for fraudsters.