PHOENIX, AZ -- 05/15/08 --
Take Charge America is offering consumers four
easy
personal finance tips and is encouraging
people to put the important, and often life-changing, task of financial
clean-up at the top of their spring cleaning list this year.
"Spring is a perfect time for consumers to review their financial situation
and rethink their spending habits to help them to better manage money," said Mike Sullivan,
director of education at Take Charge America. "As consumers are
reorganizing their homes, and cleaning out closets and garages, they should
consider doing the same for their financial life by reviewing their
finances, creating a livable budget and reducing debt."
Sullivan notes that all consumers can benefit from taking a step back to
carefully review their overall spending habits and total debt. This can
help them determine what they can do to freshen up their finances and live
a more organized and stable financial life. He offers the following tips
for embarking on a spring budget makeover:
1. Take a look at your "good" and "bad" debt - Review the good, bad and
essential sides of your debt to determine what you should be spending
where. "Good" debt might include mortgage and student loans, as they
often have lower interest rates and can boost net worth and/or lifetime
earnings. "Bad" debt includes high-interest credit cards, and
oftentimes, auto loans, as these debts lower your net worth and may
mean you are living beyond your means. Finally, don't ignore necessary
debt, such as medical bills, which may come unexpectedly.
2. Create a livable budget - After determining what debts are necessary
and which are the result of non-essential purchases, sit down and
create a list of what expenses you have each month and compare it with
your monthly earnings. Categorize the "good," "bad" and necessary
purchases and see where you can make some alterations. If you find you
owe more money than you earn each month, you may want to consider
contacting a credit counselor, who can walk you through your expenses
and give you tools to help you create a manageable budget.
3. Downsize debt - Next, focus on paying off your "bad" debt by summer, or
in a reasonable timeframe for your individual needs. High-interest
credit cards can cause you to pay twice as much or more for something
if you do not pay them off each month. Put any extra cash toward
downsizing this debt so that you can focus on living within your means,
and saving money for the future.
4. Earn interest on extra cash - Once you have begun living within your
means, start saving money and earn even more of it. Instead of keeping
extra funds in your checking account, where you might be tempted to
spend it, explore new savings options that can yield a higher interest
rate. Consider opening a money market checking account with higher
interest or purchasing a certificate of deposit to remove the temptation
to spend.
"By making just a few small financial changes this spring, consumers can
achieve the peace of mind that comes with starting anew, leading to a
greater sense of accomplishment, and even a more satisfying year," said
Sullivan.
ABOUT TAKE CHARGE AMERICA
Founded in 1987, Take Charge America is currently celebrating more than 20
years of service as one of the country's largest non-profit financial
education and consumer debt service organizations. Through education,
customized credit counseling and debt management, Take Charge America helps
consumers achieve self-reliance, financial stability and financial
freedom. Take Charge America is a member of the Association of
Independent Consumer Credit Counseling Agencies, a national membership
organization established to promote quality and consistent delivery of
credit counseling services. In 2006, the organization received the Better
Business Bureau Ethics Award in recognition of its business ethics and
integrity in the marketplace. To learn more about the organization or its
programs, please call 1-800-823-7396 or visit www.takechargeamerica.org.
MEDIA CONTACT:
Jacqueline Hahey
Off Madison Ave for Take Charge America
(480) 505-4554
jacquelineh@offmadisonave.com
