Meet Barry Coleman, vice president of counseling & education programs, for the National Foundation for Credit Counseling (NFCC). In this exclusive interview, he’s here to share some information about the organization and its service to the community.
Can you tell me about NFCC and its cause? Who are you geared toward? What is the goal?
Founded in 1951, the National Foundation for Credit Counseling (NFCC) is the oldest nonprofit dedicated to improving people’s financial well-being. NFCC nonprofit counselors are financial advocates working toward the goal of empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, student loans, housing decisions, and overall money management. There are 1,100 NFCC Certified Credit Counselors serving 50 states and all U.S. territories. For added accessibility to renters who are confronting housing insecurity, we’re piloting video kiosks to enable them to video-chat with our counselors. This is a game-changer as it will expand our reach enabling the NFCC to serve more customers in under-represented areas in the future.
Prior to COVID, two million families were facing eviction. How do those numbers compare to now, four years into COVID?
According to U.S. Census data, that number has increased substantially. In fact, it is estimated that 3.6 million eviction cases are filed annually.
The effects of COVID are still being felt on our health, in our families, at our jobs, and our overall well-being. Millions of Americans have lost their jobs and are struggling to make rent payments. The NFCC recently surveyed more than 2,000 American renters. They told us “sadness” is the emotion they most associate with eviction. Not anger — sadness. What’s more, only 36% of them feel they fully understand their “rights and opportunities” when it comes to eviction. These findings confirmed the need for more information and support for renters. That’s why we launched “Make it R.E.A.L. (Renter Equity At Last) to raise awareness of the unique housing security issues they face. The NFCC and our partners at the Wells Fargo Foundation believe renters are entitled to feel stable in their homes and financial setbacks shouldn’t have to result in an eviction.
For some people who may not remember the Great Recession, can you describe it? How do those times compare to now?
Sadly, some of the issues that faced the country during the Great Recession (2007-09) are present today:
- Inflation. Back then, the average inflation rate was 4% and that felt oppressive. Today, the inflation rate is over 8% today which is having a devastating impact on many working families who are finding it difficult to manage living expenses.
- Unemployment (and under-employment). I don’t think a day passes when we don’t hear about mass layoffs and employees advocating for improvements in their compensation and benefits. Job loss was significant during The Great Recession too – the phrase “tech bust” was coined to describe the significant decline in that sector which had a devastating impact on employment.
- Job Dissatisfaction. Even those fortunate to have jobs then felt a level of dissatisfaction during the Great Recession. Mass layoffs meant increased workload (usually without more pay) for those who retained their jobs. Today, we see workers advocate for themselves more vigorously or leave positions that don’t fulfill them. We didn’t have “quiet quitting” back then.
- Housing. Rents increased dramatically during the Great Recession because there was a greater demand for affordable units than supply. Millions lost their homes due to foreclosures. Owners may have become renters and those who rented a property that was foreclosed upon faced even worse fates. Of course, the impacts on credit scores made it difficult to reverse the trend. Low-income renters today are facing similar challenges. COVID rent moratoriums have ended and there is a limited inventory of affordable housing causing many to have to work multiple jobs or move their families to make ends meet.
How did the Wells Fargo Foundation & NFCC collaboration come about? How do you all conduct your studies?
The Wells Fargo Foundation is a valued, long-standing partner of the NFCC. They share our core values of making sure people are financially literate and have access to the tools they need to take care of families today and in the future. Housing insecurity is one area we’re focused on together. The lack of stable housing can impede interpersonal relationships as well as the ability to work or pursue higher education. Like other forms of socio-economic bias, housing insecurity is disproportionately experienced by Black women. That’s why we launched “Make It R.E.A.L. (Renter Equity At Last)” to raise awareness about housing instability and the unique challenges renters face. Through financial education, testimonials, and inroads to debt management counseling from authorized NFCC-certified credit counselors – both in-market and via tele-sessions – the campaign aims to mitigate involuntary moves such as notices, evictions, and liens and make housing stability real for all. This program is made possible through the Wells Fargo Foundation and we are grateful for their support.
What are some historical financial factors that may contribute to why Black Americans have such a high likelihood of facing eviction?
Historically, Black communities have faced discriminatory practices, redlining, and housing policies that have hindered their equitability to rent or purchase homes. To reduce housing insecurity in Black communities, it is critical to address systemic issues such as fair housing laws, financial redress, and inclusive zoning. Increasing Black homeownership is a social justice and economic growth strategy that can benefit everyone.
How does your program plan to tackle bringing financial literacy and education to underserved communities?
The National Foundation for Credit Counseling (NFCC) is the oldest nonprofit dedicated to improving people’s financial well-being. NFCC nonprofit counselors are financial advocates working toward the goal of empowering millions of consumers to take charge of their finances through one-on-one financial reviews that address credit card debt, student loans, housing decisions, and overall money management. With more than 1000 NFCC Certified Credit Counselors serving 50 states and all U.S. territories. For added accessibility to renters who are confronting housing insecurity, we’re piloting video kiosks to enable them to video-chat with our counselors. This is a game-changer as it will expand our reach enabling the NFCC to serve more customers in under-represented areas in the future.
What are some ways that average working-class minorities can try to achieve housing stability while it grows more and more unattainable?
Stability in the home is crucial for the social and emotional health of the entire family. Certainly, there are many factors that influence housing insecurity such as medical crises, job loss, and domestic violence. Outside the home, rising housing demand can make renters vulnerable to not having their lease renewed at an affordable rate. However, within our control, here are three ways consumers can work toward housing stability:
- Select housing that is truly affordable (and maintainable) by your household. Do not bite off more than you can chew when it comes to housing, even if it requires compromise like living in a smaller space, The NFCC does not recommend spending the majority of income on housing. This doesn’t encourage sustainable budgeting or safeguard households from financial emergencies.
- Stay on top of home upkeep and safety. Living in substandard conditions is physically and emotionally taxing, which can in turn affect one’s performance at work or school. Having the ability to maintain healthy living conditions is key to stability.
- If renting, review and interrogate the terms of your lease carefully. Be certain the conditions align with your lifestyle and, if you sign the lease, abide by the terms. Adhere to restrictions in terms of occupancy, noise, etc., and pay your rent according to the terms. Do not invite actions that could jeopardize your lease agreement.
For those of us on the East Coast who may not be familiar with the housing crisis in the South, can you explain a bit of what hardships Southern Americans are facing?
The factors that help determine a housing crisis are the same all over — increases in delinquent mortgages or rental payments, housing vacancies, and foreclosure rates. These are resulting factors of a weak economy due to inflation, population growth, under and unemployment. While these factors can happen anywhere across the country, fewer new construction projects and Southern migration have strained local economies.
Do you think it is important for Black & Hispanic people to own their own homes, or should they continue renting and practice better literacy?
Homeownership is considered a key marker of the “American Dream” yet, for many Black and Hispanic Americans, it is out of reach. The truth is, whether or not to purchase a home is a personal choice. Does the financial responsibility, care, and upkeep match with your lifestyle? Whatever your personal choice, the NFCC believes all Americans should have equitable access to the financial information and resources needed to make a sound decision about home ownership. A home is the most predictable asset we can own.
What support can the NFCC offer those affected by this current recession? Are these services accessible to those who may be struggling financially?
The NFCC does not offer financial relief in the form of grants or loans. We offer customized, one-on-one financial reviews that address credit card debt, student loans, housing decisions, and overall money management. Our goal is to empower millions of consumers to take charge of their finances. The best way to find out if our services are right for you is to visit NFCC.Org or call 8003882227.
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