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More Americans Admit They Don’t Know Money Handlement

We need counselingThe typical household seeking credit counseling has $35K in annual income and unsecured debt of $17.5K spread among 5.7 credit cards. A recent study also found the number one reason to seek counseling was “poor money management,” eclipsing “reduced income” which had held the top spot since 2009.

Yes, Yes, Yes —- more Americans are finally confessing they have poor money skills as well a poor nutritional skills.

Recent research from our good friends at National Foundation for Credit Counseling (NFCC) found that the age of the majority of consumers seeking credit counseling was fairly evenly divided between 25-54, with young adults in the 25-34 age group leading the way (24%), followed by the 35-44 range (23%), and the 45-54 group (21%). Why such a red flag: Financial problems can occur at any stage in a person’s adult life which, if left unaddressed, can begin a negative spiral from which it can be difficult to recover.

Other reasons for credit counseling red flags:

* An improving economy may put more money in people’s pockets, but if not managed properly, it can still result in financial distress.

* Owing too much relative to your income resulting in a high debt-to-income ratio not only makes it harder to meet all debt obligations, but can hinder future borrowing.

* The number of credit cards a person has is not as important as how they manage them. Whatever the number of cards, maxing out the lines of credit will likely harm a person’s credit score.

More than 1.5 million consumers reached out to an NFCC member agency last year for answers and solutions to their financial concerns around debt, housing, budgeting and bankruptcy.

For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit www.nfcc.org. Visit us on Facebook: www.facebook.com/NFCCDebtAdvice, on Twitter: twitter.com/NFCCDebtAdvice, on YouTube: www.YouTube.com/NFCC09 and our blog: http://financialeducation.nfcc.org/

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