San Diego, CA - Just like an
automobile engine's idiot lights come on when it needs
oil, or other sort of service, personal finances are the
same way. Only difference is the financial danger signs
manifest themselves in a form other than an idiot light.
Ignoring such warnings in the handling of money can become
very expensive, also just like ignoring an idiot light on
Many consumers, however, aren't always honest with
themselves or other family members about their own
financial situation. Not wanting to exhibit their lack of
financial knowledge, to avoid embarrassment they keep
their financial matters, good or bad, to themselves.
Often, credit/debt and other financial counselors talk
with clients who are way over their heads in debt, yet
their clients genuinely feel that their credit Practices
are just fine, despite the growing debt, because "they can
If you have a debt, credit or other financial problem, the
first and most important step is to admit to yourself
there is a problem and it is time to do something about
it, even if it means getting outside help. This is also a
difficult hurdle to clear for most people because they
feel that to do so would be an admission of financial
failure. The 'real' failure, however, is in not getting
help and, instead, digging oneself deeper and deeper into
a financial hole.
Whether you think you're having a problem or not, take a
few moments to reflect on your current financial state by
reviewing the following 'financial danger signs.' If any
of them feel close to home, you may want to consider
contacting an accredited, nonprofit, credit counselor for
Certain Financial Idiot Lights and Danger Signs:
1) You use your credit cards regularly and rarely pay more
than the required minimum payment. Simple mathematics
makes this approach a one-way road to disaster.
Eventually, your debt will become so high that you may not
even be able to make the minimum payment.
2) You're often or always late on regular monthly bills.
If you find yourself receiving the new bill before paying
off the previous one on a regular basis, then you simply
don't have control over your finances. These monthly bills
should represent your basic needs, so you should be able
to pay for them without any problem or delay, however if
there is premium cable or other expensive subscriptions,
perhaps you need to reorder basic needs.
3) You get in frequent arguments about money with a
spouse, partner or roommate. This is usually a sure sign
that you and the person you're arguing with are overly
stressed about mutual finances, and probably for good
4) You purchase necessary consumable items, like food and
gas, with a credit card. A healthy attitude toward credit
is one in which you only use it in emergencies or to pay
for important items, with the intention of paying them off
quickly, usually within 90 to 120 days.
Otherwise, credit is simply a convenience, however, it
comes at a very high price.
5) You have no idea what your total debt is. If you can't
estimate within $500 or $1,000 what your total debt is,
your spending is way out of control. chances are when you
receive the monthly statements, you don't even look at the
balance, instead just looking to see what the minimum
payment is, and that's not a good approach to using and
6) You have recently taken out a cash advance on a credit
card to pay a monthly bill. Typically, credit cards charge
a higher interest rate and allow no grace period on cash
advances. They also charge a service fee, so it simply
doesn't make financial sense to pay your bills like this
on a regular basis. It is far better to have a
spending-plan and pay-as-you -go.
7) You have paid overdraft fees on bounced checks, on both
ends, i.e. at your bank and also fees at the bank of
payee. OR you have had a checking account closed by a bank
because of too many rubber checks.
If you're seeing two or more of these financial idiot
lights, a/k/a danger signs, in your life, it is essential
that you do something to turn your credit based spending
Practices around quickly. Otherwise you may be facing
collection or legal actions by your creditors sooner than
you might think, because some of your credit card
agreements may contain a universal default clause.
People whose finances are in a downturn, often discover
they are paying way too much for things because they fail
to comparison shop. That, like borrowing to meet regular
expenses, is another form of overspending. Overall, the
best way to increase your personal cash flow is to be
conscious of how much money you spend each day and why.
Comparison shopping is the consumer's best, but least
used, defense against overspending.
For information about mending your spending or how to set
up and implement a spending-plan (with a one page work
sheet), please visit the ICFE's Web page at:
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.