You succumbed to the seduction of seasonal spending, and now the new year has brought you mail filled with indisputable evidence that you overdid it.
Don`t despair. A non-profit financial planning organization has some strategies for overcoming money malaise and regaining fiscal health.
First, warns Jerry W. Lewis, president of the Oak Park-based Consumer Credit Counseling Service of Greater Chicago, don`t ignore the demands of creditors.
If belt-tightening still won`t give you enough cash to pay bills, ”Get on the phone with the credit granter and see if you can work something out,” he advises. ”You want to show that you are honest and sincere, and realize that you have a problem and want to work it out.”
Most will be willing to restructure your repayment, he says.
But if you and your creditors can`t arrive at a workable solution, the counseling service or another non-profit financial advice service can be an advocate on your behalf. The help from Consumer Credit Counseling Service of Greater Chicago is free.
How to preempt a future fiscal crisis?
You`ve got to draw up a formal budget, one that`s realistic but tailored to your lifestyle, Lewis says. ”If the word `budget` bothers people, they can call it a spending plan.”
To do that, keep track of where the money goes so you`ll be able to make better decisions on where to spend and where to trim.
Next, build savings into the plan. Especially in recessionary times, it`s crucial to have a reserve in case of job loss or other emergency.
Also, curb your appetite for credit. Interest is no longer tax-deductible in 1991.
If you`re an impulse shopper, don`t carry your credit cards, and in extreme cases consider stowing them in a safe-deposit box.
Consultations with representatives from the credit counseling service are by appointment only. Offices are located throughout the suburbs, and one will open soon in the city. Call 1-312-386-6600.