AICCCA Members Counsel 200,000 Consumers During First Year of Credit Counseling Requirement of Bankruptcy Law


Fairfax, VA - October 16, 2006 - October 17 will mark the one-year anniversary of the Bankruptcy Abuse Prevention and Consumer Protection Act. Association of Independent Consumer Credit Counseling Agencies member offices have provided 200,000 consumers the required credit counseling outlined in the law that consumers must complete before filing for bankruptcy.

"AICCCA members have found through counseling persons who must meet the requirement to file bankruptcy under the BAPCPA that the majority of people counseled do not have any other option available to them than to go ahead and file," said David Jones, president, Association of Independent Consumer Credit Counseling Agencies. "Most people are just too far down the road of financial ruin by the time they consider filing bankruptcy and seek pre-filing credit counseling to change directions and get their financial situation to the point that filing bankruptcy is not necessary to solve the problem."

AICCCA recommends that consumers seek help for serious financial problems sooner rather than later and follow the guidelines below:


1. Stop overspending. The only way to stop adding to your debt load is to find out where the money is going and cut back on non-essentials. Many people are surprised, after keeping track of their spending for a month, just what they are buying. It may be $50 a month in daily cappuccinos or $300 a month in meals out. Take a look at where you are spending, cut back to the essentials and use the extra money to pay down your debt.
   
   
2. Take control with a plan. To stay in control of your finances you need to have a spending plan. With a plan you will know how much money you can afford for those expenses that are discretionary. Entertainment, clothing, meals out, etc. are all purchases that tend to end up on a credit card. Your spending plan will not limit you, but will instead give you the power to make decisions about how you will spend your money.
   
   
3. Make paying off debt a priority. Start with the highest interest rate credit card and pay as much over the minimum as you can. Make sure to make at least the minimum payments on your other cards while you are paying that card down. Once the highest rate card is paid off, start on the next. To help keep you motivated, set financial goals for what you will do with the money once you are finished paying off your credit card debt.
   
   
4. Save money to prevent future problems. Put aside savings for a rainy day because that day will come. Strive to have 3 to 6 months of expenses put away in an accessible account. With savings available, you will not have to charge the car repair or unexpected medical expense.
   
   
5. Get help. If you are overwhelmed or do not know where to begin, contact a certified credit counselor and set an appointment for a confidential, comprehensive financial counseling session. Your counselor will make recommendations and help you get back on track.


Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call (800) 450-1794 or visit www.aiccca.org.