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PRESS RELEASE
Monday, December 28, 2009
New Year, New Financially Healthy You: CCCS of Greater Dallas Offers Resolutions
Ten steps to a debt-free 2010
Dallas - December 28, 2009 - As we ring in 2010, one of the most common New Year's resolutions will be losing weight -- both physically and financially. Debt is a stressful and heavy weight on consumers' shoulders, and according to The American Psychological Association's 2009 national Stress in America survey, 75 percent women and 67 percent men say money is a significant source of stress in their lives. Getting out of debt could help many consumers improve not only their finances, but their health in 2010.
"Although the economy is beginning to recover, 2010 will be a challenging financial year for everyone - consumers, businesses and even large corporations," said Todd Mark, vice president of education for Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas). "Starting the New Year off right by making smart financial decisions will help alleviate the stress of tough times throughout the rest of the year."
CCCS of Greater Dallas recommends sticking to the basics and avoiding gimmicky solutions. To pay down debt and acquire savings, spend less and save more. With less money coming in because of unemployment or lack of holiday bonuses, consumers will have to change their habits and, most likely, their standard of living. To achieve financial success in 2010, consumers should follow a financial plan and avoid overspending.
CCCS of Greater Dallas offers ten tips on how to make smart financial resolutions for a stress-free new year:
Make and stick to a budget - When making your 2010 budget, it's best to assume that your current income will not increase in the near future. Considering this and the possibility that a layoff could occur, a well thought-out plan is imperative. Once you determine your budget you'll know where every cent of your money is going, and ways to cut costs will become more obvious.
Save at least three months of living expenses for an emergency - Plan for the unexpected in 2010. With today's economy, the future of your job is unknown, health care costs are high, the housing market is unstable and retirement compensation is barely recovering. By setting aside emergency money for when, not if, your rainy day occurs, you'll be financially prepared to handle whatever the recession, or life, throws your way.
Determine how much you owe - Take note of all your debt from 2009, including holiday bills that will be coming in January and February. While total credit card debt may be a daunting number, facing the facts is the first step toward paying it off. Include your monthly credit card bills in your budget and it will become clearer as to how to manage all payments.
Organize your financial records - Create a filing system online or in a binder so bills are paid on time and recorded for future reference. There is no reason to ever pay a late fee.
Track your spending habits - When you receive your bank or credit card account reports in the mail or online, take a minute to actually read them through. This will not only protect against inaccurate charges and fraudulent activity, but it will also help you see where you spend most of your money and where you could cut back or reallocate your funds. You can also use free tools such as www.Mint.com, a budgeting Web site that tracks and categorizes your spending. It allows you to set up e-mail or text message alerts to help you avoid overdraft fees, bounced checks, late fees, low balances, and low available credit. It will also warn you if your credit card decides to change your interest rate, or if you have spent more than you planned to in your chosen categories.
Distinguish between needs and wants - To pay off your debt and save the money for emergencies, you will likely need to cut out some of the wants in your budget, while making sure the needs are still being met. Determine what things in your life are excessive and what are necessary to maintain your family's well-being and health.
Don't add to your current debt - Use cash or your debit card instead of your credit card so you don't add to existing debt. Remember, if you can't pay off the debt you have now, you won't be able to pay off even more debt. If you must use your credit card, limit any charges to purchases you can easily pay off within three months. Also, if you use a credit card with cash-back bonuses, make sure to use the cash back to help pay off your current bill rather than to make additional purchases.
Set up automatic payments - Online banking and bill payments can be a convenient way to stay on top of your budget and pay your bills on time. To pay off debt or monthly bills, you can set up online payments to automatically withdraw a specific amount from your bank account each month. This process can help you stick to your budget, avoid late fees and save on postage.
Don't forget about your retirement plan - Even though the market fluctuates daily, over time it will stabilize, so continue to dedicate a percentage of your income to your retirement plan, especially if your company will match the amount. You're leaving money on the table if you don't.
Save up for holiday spending - Once you have your budget, bills and emergency plans outlined, consider saving up for holiday spending in 2010. Rather than receiving credit card bills in January 2011, why not save a couple of dollars a day for holiday shopping fund? For example, if you saved $2.50 a day or roughly $30 a month starting January 1, 2010, you would have $835 by November 30, 2010. The National Retail Federation reported the average consumer spent $683 this year on holiday items and $832.36 in 2008. If you have the means and plan ahead to fit your budget, you can avoid holiday debt and stress entirely.
For help in becoming debt free and making smart financial decisions in 2010, contact your local CCCS office for a free budget review and credit counseling session, as well as more information on financial education and free debt seminars, at (800) 249-2227 or visit www.cccs.net.
About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit counseling and debt management service. Established in 1974, CCCS of Greater Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS of Greater Dallas is a HUD approved housing counselor and serves as one of eight counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS of Greater Dallas' free seminars or the agency's services, visit www.cccs.net.
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