We have become a nation of spenders. Most American households have more debt than they can pay on a good day and the loss of a job or a second income can be devastating.

In a recent survey 5% of households said their debt was “a heavy burden” and 4% were behind on at least one debt commitment. 20% of people say that they neglect checking their bank balances because they “are too scared to find out how much money they have”… or maybe that’s “don’t have”.

We have used our credit cards to buy groceries, gasoline for our cars, clothing that was over priced, and entertainment we couldn’t afford. Something must be done if we are to get control over our personal financial situation and there are ways to do just that.

If you find that you just have more debt and more monthly payments than you can meet for whatever reason, there is help in the form of Consumer Credit Counseling Service (CCCS) and websites such as “lowermybills” and “moneynet” It will take time but you can get out of debt. Staying out of debt is another matter.

You must make a budget. You must know exactly what your checking account balance is at all times. You must never make “spur-of-the-moment” purchases… PLAN all expenditures for clothing, household goods, entertainment, etc.
Take the time and put forth the effort to learn to do things for yourself that you hire others to do for you. This can save you hundreds of dollars a year… maybe thousands.

Invest in some good Personal Financial Management Software for your computer and learn to use it effectively. There are a lot of different programs out there.

Learn to do comparison shopping and use those coupons that come in the Sunday paper. Spend your money with a plan and don’t plan to spend all of it.

You can find lots of misinformation about money and credit and especially credit cards. Misinformation is misfortune, so arm yourself with The truth before you tackle the credit card demons!

Myth #1: “It’s all my fault I got into this credit card mess!”
The truth: It may not be your fault at all. Credit card companies really are out to get us. You probably just got caught in the trap.

Myth #2: “Credit Cards are what got me into debt.”
The truth: Spending is what got you into debt. The credit cards just made it easier.

Myth #3: “My credit rating is destroyed forever and there is nothing I can do about it.”
The truth: If you have a job and are willing to work at it, you can get your credit under control and your credit rating restored. Rebuilding your credit requires that you do three things; pay your bills on time, look for better options and learn about money and credit.

Myth #4: “It’s fine to give my credit card number for identification as long as I don’t authorize a charge.”
The truth: NEVER give your credit card number for identification purposes. For that matter, you need to guard all of your personal information like a ferocious tiger.

Unless you initiate the phone call, do not give your name, address, phone number, social security number, credit card number or driver’s license number to anybody. All of this information can cause your identity to be stolen or worse.

Myth #5: “If I pay off a debt or cut up a credit card, this information is removed from my credit report.”
The truth: When you pay off a past due debt it actually restarts the time period that it can be reported in your credit history. Cutting up a credit card does not close the account. You must call the credit card bank to close an account under all circumstances.