How to Get out of Dept: Financial Resources for a down economy

The presents have been opened, the holiday decorations have been put away, a new year has begun, and the credit card bill will be arriving any day. If you're having financial difficulties, you're not alone. The average American with a credit file is responsible for $16,635 in debt, excluding mortgages, according to Experian. (Source: U.S. News and World Report, "The End of Credit Card Consumerism," August 2008) A
28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult. (Source: Javelin Strategy & Research, "Credit Card Issuer Profitability in a Difficult Economy," July 2008)

Difficulty: Moderately Easy

Instructions

1. Don't Be Afraid to Seek Help:
   
   With economic uncertainty abounding what are some ways to cope? Christian Financial Advisor, Ryan Westfall says, "with the times that are upon us, people are becoming more transparent, and your local churches are there to help." The rules are changing, and now more than ever it is alright to face the truth and begin the journey to restore financial health. Money is no longer a forbidden topic, and embarrassment shouldn't stop one from seeking help. Luke 1:37 says, "For with God nothing will be impossible."

2. 
    

   Take a Course on Finances:
   
   Many Churches offer financial courses that are geared to teach the money management techniques necessary to stay on course. Financial Peace University, based on Dave Ramsey's best selling book "My Total Money Makeover, is one of the most reputable ones. Use the link below to find a class near you.

3. Develop a Personal Spending Plan:
   
   Online and in person help is available through Crown Financial Ministries, a Christian based money management program. Log on to www.crown.org and within minutes you could be chatting live with a money map coach for free. Crown helps people to "develop a personal spending plan, apply Biblical principles of stewardship, build a plan to get out of debt, and achieve spiritual and financial freedom." (www.crown.org)

4. 
    

   Get Out of Debt:
   
   In some situations, professional debt counseling may be appropriate. Consumer Credit Counseling is a nationwide secular service assisting in debt reduction. They can be reached at 1 (888) 771-HOPE (4673). To utilize their services you must have a source of income and be committed to repaying the debt you owe. The initial consultation is free of charge, but there is a small fee for their services if you enter into a Debt Management Program. They also offer online counseling at: https://onlinecounsel.cccsatl.org.

Tips & Warnings

• In considering financial freedom, taking the first step is often the hardest, but help is available. The definition of insanity is to do the same thing over and over and expect different results. (Brown, Rita Mae, Sudden Death, Bantam Books, New York, 1983, p. 68) With the bright and fresh start of a new year, why not implement a lifestyle change that will yield different results, and in the end, a happier and more fruitful existence.
• If you decide to contact a credit agency beware of anyone who claims to clean up your credit report. These agencies' claims are generally false and misleading.

Resources

• Financial Peace University
• Crown Financial Ministries
• Consumer Credit Counseling

[Gingaspice]

on 3/16/2009 Nice information, thanks for the number to call for financial help and the encouragement to speak with the church and not be embarrassed. I'm a student and of course that equals debt. Shouldn't be but that's the way this country works. Thanks for the verse reminder too ;)

[Delaplane]

on 3/12/2009 Great article!

[quadjr4]

on 3/10/2009 good article 5*****

[tachic]

on 3/9/2009 Getting out of debt is goal number one. =)

[NaimaManal]

on 3/8/2009 Very helpful advice. Thank you!