Thursday, September 19, 2002

Debt Reduction Training

If your debts are spiraling out of control--and according to the site CreditCards.com, the credit-card debt of the average U.S. household is now over $8,000--you might require debt reduction training. This training, which can be provided by a nonprofit credit counselor, community association or financial planner, can help you learn how to not only pay down your debt but prevent it from building up again.

Paying For Professional Help

    If you've run up a sizable amount of debt, it might be time to hire a licensed financial planner. This professional will study your financial situation and help you set up a budget that will maximize your savings while allowing you to gradually reduce your debt.

    A financial planner can also help you meet your financial goals, whether they are saving money for your children's college education or saving for retirement, all the while providing you with a budget that will help you steadily reduce your debt.

    A financial planner is a good choice for people who have run up debt because of poor spending decisions but are unlikely to repeat this pattern.

    The best way to find a licensed financial planner is to log on to the home page of the Financial Planning Association.

Credit Counseling

    If you've run up large amounts of debt several times, you might need help from a nonprofit credit counselor. A credit counselor will not only help you set a budget and pay down your debt, such a professional also will help you understand the reasons why you are consistently overspending.

    Be careful, though, when choosing a credit counselor. Even some who refer to themselves as "nonprofit" charge high fees. Work with a counselor who either charges no upfront payment or one who charges a nominal fee.

    To find a credit counselor, log on to the "Find a Counselor" section of the National Foundation for Credit Counseling. A link to the site is included in the References section of this story.

Local Debt Reduction Training

    Your local churches, YMCAs or government offices might offer free debt management and reduction courses on a regular or periodic basis. These courses are often free, and will usually provide information on setting a budget, erasing bad spending habits or saving more money.

    You can best find these local meetings by calling your city hall or by scouring your local newspapers or community Web sites for information.

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