Saturday, July 4, 2009

Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt

Saturday, February 28, 2009
Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt



Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt

Nonprofit organization helps clients return $247 million to U.S. economy

Orlando, FL (PRWEB) February 28, 2009 -- In what can be seen as a reflection of today's economy, InCharge Debt Solutions (IDS) found that the "original debt" of its new clients grew by 13% during 2008. That means that new clients came to this nonprofit credit counseling (www.incharge.org) organization seeking to find solutions with substantially higher individual debt loads than in 2007, likely due to the recession and the credit problems (http://www.incharge.org/Credit_Counseling/Counseling/WhatSessionLike.aspx?bhcp=1) facing the United States.





"The goods news is that we were able to help our clients repay over $247 million to their creditors last year," said Etta Money, IDS president and CEO. "We conducted nearly 100,000 counseling sessions during those twelve months, and the numbers document that we are not only providing a very vital service to consumers, but we are a positive force for the American economy."



The IDS data is further evidence that the deterioration of the American economy escalated during the fourth quarter of 2008. Of the nearly 100,000 consumers who received free credit counseling from IDS, the following trends were noted when the average of the first nine months of last year were compared with those of the last three. The number of consumers:


• reporting reduced income problems increased 10%


• blaming poor money management habits for their debts dropped 22%


• choosing bankruptcy over all other solutions grew by 9%


• feeling as if they could solve their debt problems on their own fell 7%



These findings demonstrate that American consumers are losing confidence in their financial situation, increasingly no longer believe that it is only their fault, are struggling with reduced working hours and layoffs, and are turning to bankruptcy more often as their only recourse.

Government Education Press Releases

* "The One Paycheck Blues," an article written by Janet Farley, takes a look at how to minimize the strain when two paychecks become one;
* Michael Rubin offers "Ten Strategies for a Fiscally Responsible Life," a guide to saving on your current income, without budgeting;
* Tamar Alexia Fleishman profiles Chef John Besh who is helping New Orleans get back on its feet with a fabulous restaurant and skills he learned in the Marines, in "Semper Delicious;"
* And, John Gannon offers ideas on how to "Diversify Investments to Reduce Risk."


The publication of Military Money is made possible through the generous financial support of a number of prominent public- and private-sector organizations including the FINRA (Financial Industry Regulatory Authority) Investor Education Foundation, which leads a multi-faceted education campaign for U.S. military members and their families. The FINRA Foundation supports innovative research and educational projects that give underserved Americans the knowledge, skills and tools necessary for financial success throughout life. Key projects include www.SaveAndInvest.org, an online resource aimed at helping military members and their families manage their money with confidence.

First launched in 2003, Military Money magazine is part of the Department of Defense's "Financial Readiness Campaign," and distributed with the support of the Office of the Under Secretary of Defense for Personnel and Readiness. The Military Money Web site, www.MilitaryMoney.com, complements the magazine with additional content, calculators, surveys and other interactive tools.

For more information on corporate, government and nonprofit sponsorships, please contact Ed Koziol, Manager of Publication Partnerships for InCharge Education Foundation, at 407-532-5616.

Headquartered in Orlando, Florida, InCharge® Institute of America, Inc., is a 501(c)(3) nonprofit organization with affiliates specializing in personal finance education and credit counseling. InCharge® Education Foundation, Inc., publishes Military Money® magazine and offers financial literacy education to clients and the general public. InCharge® Debt Solutions provides professional credit counseling and financial education services to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). Consumers can access InCharge Debt Solutions credit counseling services for free by calling 1-888-360-9694 or online at www.incharge.org.

The names and logos of other third parties, their products and services names shown herein, may be trademarks and/or service marks of their respective owners.

See Also:

* Pearson Enhances Critical-Thinking Assessment Capabilities With Launch of Watson-Glaser II
* University of London External System Hosting Two Open Days in Trinidad June 26 and 27
* Windows 7 Compatible Remote Desktop Software Released (Beta 4)
* Tutor.com Featured at Congressional Technology Showcase
* Visit An Elephant, Contribute to Conservation

High School Students and Credit Cards - A Recipe for Disaster?

Ahhh, school days. Reading, writing, and rooting for your school football team. Hanging out at the mall and surfing the web. Ok, so things have changed a little since you were in school. The current generation of teenagers now has more purchasing power than ever, and companies are spending millions of dollars to get your teen to pay attention to their products.

If you’re like most American families, your teenager has some sort of income, be it an allowance or a job. The problem: how do you teach your child about money, before they “invest” it all into the current fad? Believe it or not, the solution may be a credit card.

Once upon a time, giving a teenager a credit card was laughable, if not impossible. However, now there are several cards available just for teens. Options such as parental control and digital allowances serve to let parents participate in their teen’s initial journey through the world of credit. Although the thought of your teenager with a credit card in their back pocket might cause you to break into a cold sweat, there are some good reasons why this could be a great educational experience for your child, as well as yourself.

Money Management 101 The sooner your teen learns about the reality of credit, the better. Teach your teen basic lessons about how credit works, including how interest rates can quickly double or even triple the original price of an item. Rather than giving your teen free reign to purchase anything he or she wants, help your teen establish a budget and a sense of financial responsibility. Another good source is Citibank's Credit-Ed program, where teens can see how good they are at credit management, budgeting and more.

Foundations for Good Credit By providing your teen with early money management skills, you set them up for an easy transition into the world of adult credit. A recent survey of adults sponsored by the InCharge Institute of America highlights the need for education. About half of the respondents claim that they were never taught about credit by their parents. When teens leave home for college or work, they will be bombarded with credit card offers. Incoming freshmen are expected to amass an average $1,500 in credit card debt according to Nellie Mae, the largest non-profit provider of education loan funds in the U.S. (more info here). A sound knowledge of credit will make your teen aware of the potential pitfalls of “too good to resist” credit offers. An early start can also help your teen to establish good credit, giving him or her countless advantages when they’re on their own looking to purchase a car or a house.

Security Another advantage is the feeling of security you have in knowing that your teen has a back up in emergency situations. Using plastic is also safer than using cash. Furthermore, in the event that your teen's card is lost or stolen, you'll pay nothing for unauthorized purchases.

Options There are many card options available to teens. During the summer of 2001, Visa introduced a new product geared toward teens that is called the Visa Buxx card. The Buxx card has sparked a great deal of discussion and debate about the merits of allowing teens access to electronic forms of payment. The card is basically a prepaid debit card, according to Michelle Singletary, a personal finance writer with the Washington Post. Visa has embarked on a marketing campaign to promote the Buxx card and bills the card as a "parent-controlled reloadable payment card". The card is already being issued by many large banks and may come with an annual fee and transaction fees. Fees vary from bank to bank.

Another option for parents that have a higher risk tolerance level is to co-sign for a low-limit unsecured credit card (aka a "real credit card"). If you are brave enough to choose this option, make sure you limit your risk by asking for a very low limit on the card, such as a $200 to $300 limit. Please bear in mind that this option will affect your credit rating.

Should you decide that it’s time to teach your child the golden rules about credit, you will want to investigate the types of cards available. This will help you match your teen with a card that meets his - and your- needs. With thorough research and responsible teaching, you can make your teen’s entrance into the financial world smooth, fun, and successful. Go team!