Consumer Credit Counceling Service Seeing 'Getting Out of Debt' at Top of New Year's...

Business Editors

ROCKVILLE, Md.--(BUSINESS WIRE)--Jan. 10, 2002

According to Joanne Kerstetter, President, Consumer Credit

Counseling Service of Greater Washington

Shortly after ringing in the New Year, millions of Americans begin making their resolutions.

But the important thing for people to remember is that they dig themselves into debt over time and it takes time to dig themselves out of debt. There are no quick fixes.

CCCS, a non-profit credit counseling organization, sees a seasonal increase in consumers seeking help each February, when consumers have trouble making payments on the bills they charged during the holiday season.

Credit counselors at CCCS are trained to work with people who need help paying back creditors, especially after the holiday season.

If, like millions of others, paying off your debt is a New Year's resolution, CCCS of Greater Washington offers the following tips:

1. Put away all of your credit cards. Try to pay your bills with cash or check until your balances are paid.

2. Determine the total amount you owe creditors; then decide which creditor needs to be paid first. Your first set of priorities should be credit cards with the highest interest rate, typically department store cards.

3. Look for cards with charges for late payments and minimum payment requirements. But be sure to make at least the minimum payment on each card.

4. Reduce your spending and set a realistic budget. You may have to tighten your belt and say no to some extras for a time.

5. Set goals. Once you've achieved them, reward yourself (without spending a lot of money).

6. Once you've eliminated your debt, revise your budget and stick to it. Put the money you've been budgeting for your debt into a savings account.

7. In 2002, remember to spread your holiday shopping and spending throughout the year to take advantage of sales and to avoid overextending yourself during the holidays.

8. If you feel overwhelmed by calls from your creditors or escalating bills, call CCCS at 1-800-328-0878. You can meet with a counselor face-to-face or be counseled by phone to evaluate your financial situation and help determine a plan for getting out of debt and stopping the calls from creditors.

Joanne Kerstetter is president of Consumer Credit Counseling Service of Greater Washington, a free, professional, non-profit community service organization dedicated to helping individuals and families in the Greater Washington area resolve financial problems for more than 25 years. CCCS promotes the wise use of credit intervention and community education. CCCS has offices located in Washington, D.C., Maryland, Northern Virginia and West Virginia. For more information call (800) 328-0878.