Determines If You Are Out of Kilter Financially!
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"Formula Helps You Determines If You Are Out of Kilter Financially!"

RELEASE: July 2001
CONTACT: Paul S. Richard, ICFE Executive Director

San Diego, CA.  According to some experts, some 70 percent of all adult working Americans have no money left after paying their basic expenses and bills each month. "Many are out of kilter, financially speaking, and they don't even know it," said Paul S. Richard, executive director for the nonprofit Institute of Consumer Financial Education (ICFE), a San Diego based group helping consumers become better spenders, regular savers and wise users of credit.

"How do you tell if you are financially out of kilter, or in danger of being there? There is a simple formula that most retail lenders rely on to determine if a loan applicant has too much debt and out of kilter," explained, Richard. The formula is: monthly take home pay, less housing expense (rent or first mortgage) equals X multiplied by 20 percent equals the total amount of money you should be paying towards loans, credit cards or other debts.

EXAMPLE Monthly take home pay is $2400. Less housing expense: $800 a-month, equals $1600 multiplied by 20 percent equals $320 maximum amount to be paid on car or other loans including charge cards. "Consumers who apply the formula to their own finances and find they have too much going towards charge cards and loans have limited choices to in order to alter their course. They need to increase income or reduce outgo, if possible, by refinancing, and sometimes, by a consolidation loan," Richard said, adding, "The next focus is spending, because that's the key to debt reduction and, eventually, savings and investing for the future."

Take Home Pay: $2400
Less Housing (-800)
Balance $1600
x 20%= $ 320 available for credit payments.

"The ICFE has a wide variety of aid for consumers, especially those who find themselves out of kilter," said Richard, whose group has helped thousands of people through its Web site at: http://www.financial-education-icfe.org.

For information about "Mending Spending," monthly budgeting guidelines, and warning labels for your charge cards, visit the ICFE's Web page at: http://www.financial-education-icfe.org.

The site also includes helpful sections on increasing savings, using credit wisely, plus "How to set up
and implement a spending-plan
" (with a one page work sheet) for personal and/or family finances. To receive the same information by mail, please send $1 and a self-addressed, 60 cent stamped envelope to:

ICFE Money Helps
PO Box 34070
San Diego, CA 92163-4070

About the ICFE:

The Institute of Consumer Financial Education (ICFE), founded in 1982 by the late Loren Dunton - creator of the "certified financial planner” (CFP) designation - is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. The years between 1984 and 2000, the ICFE was also known as the National Center for Financial Education (NCFE).

The ICFE is a nonprofit consumer education organization that has helped millions of people through its education programs and Resources. Over one million "Credit / Debit Card Warning Labels” and "Credit / Debit Card Sleeves” are in circulation world wide.

The ICFE's on-line help for consumers who spend too much was featured in PARADE Magazine (June 9th, 2002) in the Intelligence Report section. The money helps and tips are from the "Money Instruction Book," a course in personal finance, which was completely revised and updated in 2002 and is positioned to become among the premier programs in the new bankruptcy and debtor education initiatives.

The ICFE's "Do-It-Yourself Credit File Correction Guide," now in its Twelfth Printing, is in use by thousands of consumer credit and debt counselors in addition to tens of thousands of consumers. It received a "buy” rating in July, August and November from nationally syndicated financial columnist, Humberto Cruz in his column, "The Savings Game". BottomLine Personal newsletter gave the Guide a "Send For” rating in September 2001. The ICFE and our do-it-yourself approach to credit file correction was featured on NBC Nightly News on 04-30-02. The Spanish edition of the Guide premiered in January 2002. Syndicated columnist, Robert Heady also gave the ICFE Guide a "buy” rating.

The ICFE Web site at: www.financial-education-icfe.org helps consumers with mending spending, learn about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also access financial education courses and videos and how to teach children about money. Other ICFE services include a free eNews, and an on-line resource center of financial education learning tools, including videos, books and personal finance courses.

Consumers may learn more on the Internet about the "Do-It-Yourself Credit File Correction Guide" here, or fill out our request form, indicating your areas of interest.

For more information contact Paul S. Richard ICFE Executive Director at 619-239-1401.

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