San Diego, CA - Many Americans
talked about their wonderful holiday season, however some
are not so gleeful now, because the credit card bills just
keep coming. Money is still very tight for an alarmingly
high number of American families. Many of the money
shortages are due, in part, to poor spending decisions,
often credit-based, made over the recent holiday season.
Dealing with creditors and getting out from under a
mountain of debt are two situations many Americans are
also finding themselves in for the first time. Taking
action early and not delaying communications with
creditors or others involved is essential for survival and
long term financial recovery. Establishing a written plan
of action for both household spending and debt reduction
is crucial to financial survival and recovery.
Take positive steps in order to reduce the negative impact
of adjusting to a pay-as-you-go life-style. Developing new
spending priorities and techniques to make less income go
farther is an acquired skill. Achieving greater
value for your spendable dollars, especially in household
and grocery spending (because that is where 30 cents of
every take-home dollar of income goes) makes coupon and
rebate use even more essential than ever.
Working directly with creditors, will help you avoid
making the same mistakes again. Letting credit and debt
counselors do the work with creditors for you can be less
stressful, but it also may be expensive
due to fraud and other scams. Many so-called debt
management agencies are fronts for lawyers who just try to
sell people on filing for bankruptcy. If you select a
credit counseling agency, make certain
they are an accredited, nonprofit agency with a long and
successful track record of helping consumers reduce their
The three basic ground rules when dealing with creditors
are: be honest, be humble and be in touch. Take the first
step by contacting all creditors, preferably ahead of time
if you know an income reduction is
pending. Explain what's happening and lay the groundwork
for a temporary reduction of payments. Have your plan
ready. Tell them how much you can afford to pay and how
often you can pay it. Then be ready
Getting out of debt (and rebuilding credit) is a somewhat
slower, step by step process. Avoid more borrowing just to
pay someone else off. Sometimes a consolidation loan
improves cash flow, but ultimately it is
added debt and that may have a negative impact on credit
files, especially if paying off new charges in addition to
a consolidation loan.
What your credit files might say about you in future years
is your responsibility. Taking positive action with all
creditors early usually stops negative reports from being
sent to credit reporting agencies.
Here are 17 positive steps to take to reduce debts.
1. Begin immediately. (Getting started can be the most
2. Make up a written plan of action
3. Take on no new debt including a consolidation loan.
4. Close accounts by returning credit cards to issuers.
5. Maintain written accounting of all income and outgo.
6. Begin collecting receipts to raise spending awareness.
7. Examine all expenses looking to increase value, getting
the same or
more for less.
8. Put all extra income towards paying off debts.
9. Start doing things yourself and do not pay for
10 Make all necessary sacrifices to eliminate debt.
11 Sell items losing value especially ones' with debt owed
12 Make getting out of debt a family affair.
13 Write creditors to keep them informed of your plans and
14 If necessary, ask for temporary reductions in payments.
15 Utilize cents-off coupons/rebates wherever possible.
16 Critically review spending Practices and habits,
17 Make comparison shopping a habit.
For information about "Mending Spending,' or monthly
budgeting guidelines, 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) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org. Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.
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) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and Resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million 'Credit/Debit Card Warning Labels'
and 'Credit/Debit Card Sleeves' world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE's on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
'The Money Instruction Book,' a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
The ICFE Web site at:
www.financial-education-icfe.org helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNews, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.