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| New Financial Literacy |
| and Educational Website |
| Now Available
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| www.making-change.org
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 s part of its commitment to provide financial education and counseling to the public and its clients, Debt Free has obtained a license from the Foundation for Human Development, Inc. for access to the Foundation's makingCHANGE website, an educational money management site. Debt Free is now able to provide its clients and other individuals counseled by Debt Free with their own username and password to access the website at no charge. |
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| The makingCHANGE website allows users to: |
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| Learn basic money management skills through engaging, interactive exercises. | |
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| Apply the concepts of basic money management to their own financial life. | |
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| Develop a comprehensive understanding of the ways their money choices affect them. | |
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| The website provides a complete financial literacy and education program by offering an interactive curriculum, behavioral change elements, and an evaluation of career roles and goals, among other financial educational components. |
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| Interactive Curriculum |
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| Users will be able to experience content in the following ten core learning areas: |
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 | Budgeting for Success |
| | Credit Counseling |
| | Credit Ratings |
| | Understanding Credit Cards |
| | Bankruptcy Basics |
| | Your Home |
| | Choosing an Automobile |
| | Financing College |
| | Affording Healthcare |
| | Planning for Retirement |
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| With each course, the user will have the opportunity to input their own personal financial information into a secure system allowing them to experiment with the outcomes of financial decisions in a "safe" environment. They will also experience the content through case studies and interactive stories of people faced with the same decisions. |
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| Behavioral Change Elements |
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| The key to financial success for some people is recognizing the need for changes in their spending behavior and taking the necessary steps toward making those changes permanent. Integrated throughout the program are elements to assist the user with behavioral change. Users are also encouraged to explore their status in the change cycle. |
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| Evaluation of Career Roles/Goals |
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| (Available this Spring) |
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| Many money management programs focus solely on how users can cut expenses and live on less. While this program includes these elements, it also encourages the user to start by evaluating their roles and values in life. This is followed by career management techniques which may lead the learner to focus on how to better use their career choice to meet their other life goals. |
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If you are interested in accessing the member's only section of the makingCHANGE website at www.making-change.org and don't already have an Access ID and Access Password, please call our Customer Service department at 1-800-811-4102. Once on the website, use the link entitled "New Member? Get Started Here."  |
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| New Year, |
| Same Old Story |
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| Help for the Holiday Debt Hangover |
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 ou had high hopes for the New Year. You still remember the positive resolutions you made at the party. Now, months later, it feels a whole lot like the previous years when you felt trapped by the debt left over from holiday overspending. Not only are the gifts not paid for yet, but with interest on your credit cards, you will be paying for those gifts long after they are forgotten. |
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| Don't feel alone. The American Bankers Association reports that the average time to pay off those holiday debts is 4 months. They also report that only 28% of all households had controlled spending with a holiday budget, leaving 72% waiting for an unwelcome surprise when the bills come due. These statistics also show that in the third quarter of 2003, over 4 percent of all credit card accounts were delinquent, which is the highest ever. The average American family spends over $1,000 on gifts alone and there are many other holiday expenses that are not in the household budget. |
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| Here are some ideas for managing holiday debts while you try to keep from making things worse. The first thing to do is stop using your credit cards now. One economic advisor suggests that you put the cards in a plastic bowl of water and put it in your freezer. This way you have them if you really need them, but they aren't handy for impulse buying. By not using credit cards, the strategy is to pay cash for your living expenses like food, clothing, housing and utilities, so you don't add to your debt problems. This is a time to really work at cutting unnecessary expenses like long distance phone calls, non-essential travel, eating in restaurants, buying junk food, soda, and coffee drinks and even the use of the ATM for extra cash. |
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| These practical budget ideas are only good if you have a plan on how to use the money you save. Ideally, you will use it to reduce your credit card debt. When paying your credit cards, calculate an amount to set as a goal to pay over and above the minimum payment on your credit card statement. Paying the minimum payment only ensures that you will be paying the maximum time on that account, often as high as 40 years depending on the interest rate. Some experts suggest you apply these additional funds to the credit card account with the highest interest first. To determine the amount you can pay toward reducing what you owe, you will need to figure out what all of your monthly expenses are. |
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| The majority of budget advisors stress that having such a written plan is the most important factor and it is vital to accomplishing the goal of reducing your debt. |
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| Now is also the time to take steps to make sure you are not in the same position next year. Again, having a written holiday spending plan will help a great deal. Decide how much you will spend on gifts and start saving in order to have those funds available when the next holiday season arrives. |
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| Finally, if you find yourself in an unmanageable situation you may need to seek help. One of the options available to you is to take advantage of the services offered by Debt Free. This non-profit organization has the knowledge and experience to help you resolve the debt crisis you may be experiencing. By agreeing to have Debt Free manage your credit card and revolving credit accounts, your interest can be significantly lowered and your monthly payments may be reduced. |
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Counselors are available at
1-800-997-2304 to advise you.
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