CONSUMER BUDGET COUNSELING, INC.

SURVIVING DEBT AND CONSUMER OPTIONS

The process of dealing with financial problems is mostly about making the best available choices. This excerpt from our educational text is organized to inform and guide you through those choices.

Debt Danger Signals:

By looking at your spending patterns, you can tell if you have a problem:

•  Are you using credit more often?

•  Do you borrow to pay current bills?

•  Are you regularly late at paying bills?

•  Do you have to choose which bills to pay and which to put off until later?

•  Do you often pay only the minimum amount due?

•  Has your standard of living remained the same but checkbook and savings balances gone down and credit balances gone up?

•  Are you being contacted by creditors?

•  Have you just given up on some bills?

If you answered "yes" to most of these, it is time to take action NOW.

Planning Away Debt:

When you see financial problems coming, the first step is to take stock of your financial situation. Counselors say consumers tend to overestimate the seriousness of their financial problems. Most problems can be remedied with planning and budgeting:

•  Make debt reduction your #1 priority.

•  Determine all sources of income now and for the next few months.

•  Face up to how much you owe and the cost of monthly payments.

•  Determine which bills are essential (rent, utilities, food, car payments, etc.) and which are avoidable.

•  Quit charging and apply extra cash to reducing balances.

•  Find ways to generate extra income (overtime, baby-sitting).

•  Cut back on nonessentials (eat out less, ride share, bargain shop).

•  Track spending, balances and minimum payments due.

•  Watch debts melt. It happens fast.

         PLEASE CALL US TO RECEIVE A FREE COPY OF OUR COMPLETE   EDUCATIONAL TEXT:"SURVIVING DEBT".