Make a change of attitude. Recognize that credit is not a source of income. A “convenience check” is not a paycheck. Too often people use their credit as income. They think if they have $10,000 limit, they have $10,000 more in available income. Come to terms with the fact that using credit is spending money that won’t be replenished and has to be paid back - not by some unknown entity but by you. Using credit also means spending money that costs money - sometimes a lot of money.

Make your payments on time. Most people are generally aware of when their bills are due. If you need to become more organized for this to happen, then do so. (See the January 2007 edition of Defeat Debt for ideas about organizing your financial records-you can find it on our website.)

We can not over emphasize the importance of paying your debts on time. First, when reported accurately on your credit report, a solid repayment history is used to calculate your credit score making up 35% of the final score. Second, a poor payment history will cost you money - not only in late fees and charges but also in increased interest rates on both current and future credit accounts.

If you are trying to get out of debt, stop using credit cards. It is a cycle that has to be stopped. The cycle usually works like this: you want or need to make a purchase that you can not pay for outright. You use your credit card. When payment comes due you make the minimum payment. Interest accrues. The next month the balance is higher and you make another minimum payment. You use the card again. Now not only the balance is higher but so is the minimum payment. Oops, you’re late with a payment - late charge, interest rate increase and now the balance skyrockets. Stop the madness, now. If you’re trying to reduce your debt, stop using the cards. Keep making payments on time and you will see results.

Create a plan of action to guide your financial efforts. What’s your goal? Reducing your debt? Saving for college or retirement? All of the above? Knowing where you’re going or what you’d like to achieve makes your financial efforts more effective and helps guide your credit and debt choices as you move forward.

Create and use a realistic budget. Use your plan of action to help you design your budget, including setting aside funds for debt reduction and savings. Stop thinking about your budget as a financial diet (yuck!) and never use your budget as a financial bat to beat yourself up with when you strike out (One strike out does not end the game.). Think of your budget as a financial map that guides you in the direction you need to go to fulfill your plan. If you encounter a surprise detour readjust your map, don’t give up. Go back to your original plan and budget, make the adjustments needed and then - move forward again.

Every effort (physical, electronic and procedural safeguards) is made to ensure that your financial information is kept confidential and secure. All Credit Advisors Foundation employees are strictly held to the standards outlined in their confidentiality policy, which include appropriate and disciplinary action for knowingly or unknowingly revealing information of a confidential nature. Clients can expect that all of their business information will be kept absolutely confidential and secure from threats or unauthorized access. We do not release nonpublic individual information about our clients or former clients to anyone, except as permitted by law without your permission. CAF has created this privacy statement in order to demonstrate our commitment to privacy. The following discloses our information gathering and dissemination practices:

Information Logged

We may compile data and information we receive from you; however, we do not release this information in a manner allowing for personal identification of the contributors. We use your IP address to help diagnose problems with our server and to administer our Web site.

Registration Forms

Our forms require users to give us contact information (like their name, email, and postal address), financial information (like their bank account or credit card numbers), and demographic information (like their zip code, age, or income level). Contact information from the forms is used to respond to inquiries, provide information about our company, to create personalized debt management plans, and to assist you in making payments. Your contact information is also used to get in touch with you when necessary. We may disclose some or all of the information that we collect to creditors, related financial institutions or third parties that you have authorized who need this information in order for us to assist you after a counseling session and/or in order to put you on a debt management program.

We may also collect or disclose personal information you provide or authorize such as surveys or other forms, transactions with us, creditors or others, and information received from credit reporting agencies, such as credit history.

External Links and Public Forums

Our website contains links to other sites. Our site makes chat rooms, forums, message boards, and/or news groups available to its users. CAF is not responsible for the privacy practices or the content of such Web sites. Please remember that any information that is disclosed in these areas becomes public information and you should exercise caution when deciding to disclose your personal information.

Security

Our site has security measures in place to protect against the loss, misuse, and alteration of the information under our control. Credit Advisors will take the necessary precautions to ensure your confidential information is secure, confidential and protected from unauthorized access or any other threats.

Data Quality/Access

We restrict access to nonpublic personal information about you to employees on a need to know basis in order to provide appropriate services. Our website gives users the following options for changing or modifying information previously provided:

• You can send an email to info@creditadvisors.org
• You can log in on our website and make changes through EProgress
• You can send a letter to Credit Advisors at:
  1818 South 72nd Street
  Omaha, NE 68124

Challenge yourself with our Defeat Debt Word Search puzzle. All words listed can be found in the articles from this edition Defeat Debt.

See how many you can find...

Account Action Balance Charge Contact Creditor Debt Fee Financial Goal Guide Limit Map Money Payment People Privacy Score Total