Press Releases and Media Advisories
Mid-Year Financial Check-Up
July 9, 2008, 9:32 am
Springboard Suggests Reviewing Finances
Riverside – Odds are that you made all sorts of resolutions on January 1, 2008. Many people wanted to lose weight, some promised to quit smoking, while others made an oath to correct the financial wrongs of yesterday.
Since we are now half way through 2008, Springboard Nonprofit Consumer Credit Management suggests that we review our financial resolutions to see if they have gone down the drain as in year’s past, or if we’re making progress toward our goals.
• Have you paid for your holiday 2007 purchases? If not, and you’re still charging, your debt is growing faster than the national debt. (Honestly, the government borrows money cheaper than consumers’ can.)
o Why bother? Paying off credit card debt is one of the smartest moves you can make. With credit, we promise to repay debt with income we have yet to earn. Thus, having no debt provides freedom to use future income as you see fit. You can use the money as you please, choosing to invest or save, earning interest instead of paying interest. It also lowers your credit utilization ratio which improves your credit score.
• Have you set up a financial center at home? It doesn’t matter if it’s a shoebox or a full-blown home office. The point is that you have an area where you keep all financial records and can easily put your hands on what you need when you need it.
o Why bother? Late fees are in the $40 range, so paying a bill late is tantamount to throwing money out the window, not to mention the negative ding that will go on your credit report.
• Do you review your credit report several times each year? Now that you can obtain your credit report free of charge every 12 months from each of the major bureaus, there’s no excuse for not doing so. However, the 2008 NFCC–MSN Money Financial Literacy Survey revealed that only a minority of Americans had ordered their credit report.
o Why bother? Reviewing your credit report is a sure-fire way to spot identity theft and fraud. Further, the information contained in the report needs to be about you and only you. If inaccuracies are revealed, they need to be dealt with swiftly, as your credit report strongly influences the powerful credit score.
• Do you know your credit score? No, the score does not come with the free credit report, but the few dollars you spend to purchase it will be money well-spent.
o Why bother? A person’s credit score dictates what the interest will be on loans and credit cards, or whether you’ll be extended credit at all. The difference of just 100 points can translate into tens of thousands of dollars in interest payments over the life of a loan. The NFCC-MSN Money Financial Literacy Survey found that one-third, or roughly 72 million adults, readily admit they do not know their all-important credit score. Get your score and take the necessary steps to improve it.
• Have you established an emergency savings account? Americans are lousy savers. Once again, the Survey showed that roughly 76 million adults say they do not have any savings outside of that designated for retirement.
o Why bother? Without adequate savings, you are just one flat tire, or one trip to the emergency room away from financial distress. Financial experts agree that it is prudent to have between three and six months income socked away in a liquid, interest-bearing account. If money’s tight, it’s even more important to have a rainy day fund. Start small by putting 10 percent of each paycheck into savings, and then forgetting it’s there. At the end of a year, you’ll have a little over one month’s income saved; creating a welcome safety net you didn’t have before.
• Are you contributing the maximum into your retirement plan at work? More than one-quarter of Americans are not saving anything toward retirement, according to the NFCC – MSN Money survey.
o Why bother? Time is money’s best friend, thus the sooner you start saving for retirement, the larger that nest-egg will grow. Many seniors have had to postpone retirement due to being ill-prepared. If this is not how you envision your golden years, then start now by contributing to your retirement plan at work. Starting small is better than not starting at all, particularly if the company will match your contribution.
“The year is only half over,” Springboard Vice President Melinda Opperman said. “That means that you have six months left to get back on track. There is nothing to be gained by delaying. The above represents the basics. Implementing these financial musts will lay the foundation of a sound financial future, and provide you with bragging rights about New Year’s Resolutions.”
For professional help getting started, reach out to a trained and certified consumer credit counselor at Springboard. There you’ll find counselors who work with people like you everyday, pointing them toward financial stability. For free credit education and counseling, dial (800)-947-3752, or go online to www.credit.org.
For more information, contact: Melinda Opperman, Vice President of Community Outreach, 800-947-3752 ext. 888
About Springboard Nonprofit Consumer Credit Management
Springboard is a nonprofit credit education and financial counseling organization founded in 1974. The agency offers personal financial education and assistance with money, credit and debt management through confidential counseling. Springboard is accredited by the Council on Accreditation, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies. The agency provides pre-bankruptcy counseling and debtor education as mandated by the bankruptcy reform law. Springboard is a HUD approved housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies. The agency has several locations in California and offers face-to-face and nationwide phone counseling services. For more information on Springboard, call 1-800 WISE PLAN (1-800-947-3752) ext. 7750 or visit their web site at www.credit.org.
