Wednesday, May 7, 2003
|
Wednesday, May 7, 2003 |
Service helps educate consumersConsumer Credit Counseling Service of Greater Atlanta recently joined with the National Foundation for Credit Counseling to call attention to National Credit Awareness Week. With bankruptcies at an all-time high in 2002, consumer debt rising and unemployment claims increasing, CCCS urges consumers to be aware of the advantages and pitfalls of credit. "CCCS has helped educate consumers about credit and debt for 40 years," Consumer Credit Counseling Service President Suzanne Boas said. "It is our hope that consumers will take some time during National Credit Awareness Week to evaluate their current financial situation. Our new Web site at www.cccsinc.org is a great place to look for helpful, unbiased information." CCCS offers consumers the following checklist to evaluate their finances: Are you ready for credit? Students are bombarded with offers for credit when they enter school. Those not aware of the pitfalls of credit can end up leaving college with a diploma and a lot of credit card debt. Or worse, have to drop out early to work to pay off the debt. Make sure you understand how to responsibly use a credit card and will have the financial resources to pay the bills before applying for one. Do you have a spending plan? One of the best ways to avoid overspending and unwanted debt is to develop a spending plan or budget. It sounds old-fashioned, but a plan gives you power -- you decide how your hard-earned money is spent. Start by writing down all your sources of income and then all your expenses. If your income falls short of your expenses, you need to make immediate changes in your spending. When writing down expenses, you may be surprised to find that you are spending more money than you thought on things such as eating out, clothing and entertainment. Once you know where you are spending, you can make adjustments using a plan and take control of your finances. How much do you owe? If you who do not know the answer, you may have too much debt. Get out all the bills and add them up. You want to strive for less than 20 percent of your monthly income in debt payments. That includes your car payment, credit card payments, personal loans or other unsecured debts. If those payments are more than 20 percent, you may be finding it difficult to keep up with minimum payments. Tackle those debts right away or it could get worse. Do you have a savings cushion? Life is full of unexpected financial surprises and disasters. Divorce, layoffs, illness and major purchases are life happenings that when unexpected, can cause financial stress. However, a savings cushion of three to six months of living expenses can help to smooth out those unexpected times and avoid financial hardship. What about retirement and other financial goals? Planning is essential to meet your financial goals. Write down your goals and determine how you can best go about meeting them. Goals can be long-term and short-term. Without them, you may fall short when it's time to retire, or spend all winter paying for last summer's vacation on a credit card. Consumer Credit Counseling Service is a community service agency dedicated to empowering the people of north Georgia to achieve a lifetime of economic freedom. A United Way partner, CCCS puts the consumer first by providing free, confidential budget counseling, community and personal money management education, debt management programs and comprehensive housing counseling. CCCS Atlanta has been named Outstanding Agency for four consecutive years by the National Foundation for Credit Counseling and is accredited by the Council on Accreditation of Services for Families and Children. A nonprofit organization, CCCS is funded by contributions from creditors, clients, foundations, governments, businesses and individuals. Contact CCCS by phone at 800-330-CCCS (2227) or visit www.cccsinc.org.
|
||