Gaining Control of Your Finances

If any of these apply to you, you may be quickly losing control of your finances:

You don't know how much you owe until the bills arrive.
You often pay your bills late.
You are often unable to make a minimum credit card payment.
Bills that you used to pay in 30 days you now frequently pay in 60-90 days.
You frequently approach or exceed your credit limit.
You use your checking account credit lines or cash advances to pay bills.

Below are some ways to help regain control of your finances:

A rule of thumb - with the exception of rent/mortgage, total borrowing (which includes credit cards) should not exceed 20 percent of your net income. For example, if your net income is $1000 a month, you should not spend more than $200/month on your credit card.
Always pay bills on time and make at least the minimum payment.
Set aside a portion of your available credit for emergencies such as car repairs or unplanned medical costs.
Make note of your spending priorities to identify patterns and thus create a budget, making adjustments when necessary to tighten expenditures wherever possible.

If you find yourself approaching credit trouble, follow this four-step plan:

Drastically reduce your card usage. Make it inconvenient to use your card by leaving it at home or put it in a different place in your wallet as a reminder not to use it.
Revise your current budget and make credit payments a higher priority. Cut down on other expenses and do not buy luxury items that you do not really need. Make at least the minimum payment each month and set up a firm timetable to pay off your debt.
Contact your creditors. They will want to work with you, and together you should be able to figure out a realistic payment schedule.
Follow through with your plan to regain control of your financial life.

If you need further credit assistance or would like to contact another organization, see below:

Typically, if you need assistance, your card issuer can provide helpful information regarding most credit topics. Simply call the number printed on the back of your card or on the back of your statement. They will most often be able to answer all of your questions and work out solutions regarding your credit card.

For information on financial and consumer topics, call the nonprofit National Foundation for Consumer Credit (NFCC) at 1-800-388-2227.

For free budgeting and credit management assistance, contact the Consumer Credit Counseling Service (CCCS) at 1-800-388-2227 or check your local white pages for the CCCS office nearest you.

For general information on consumer credit in published form, call the Federal Trade Commission at (202) 326-2222.

For answers to specific questions about credit, contact the National Consumers League at (202) 835-3323.

Issuers

Resources

Gaining Control of Your Finances