Are You Financially Prepared for the New Year?

Take Charge America Offers Tips & Resources for 2005 Planning

PHOENIX, Ariz. (December 14, 2004)… The stroke of midnight on December 31 – does it bring visions of champagne toasts, people singing Auld Lang Syne, and the Times Square ball drop? Or, does it herald new pressures, worries and adjustments to the financial juggling act with which you’ve precariously been coping?

According to Mike Sullivan, director of education for Take Charge America, one of the oldest consumer credit counseling companies in the United States, this is a subject matter that, unfortunately, people prefer to avoid rather than deal with head on.

“I know many people are feeling increased financial stress in these economic times,” said Sullivan. “The holidays are no help. But for some, it’s easier to duck their head and continue treading water than face their situation head on. Many people wait to call us for credit counseling until their backs are against the wall and they realize that they have no choice but to deal with the situation. Whether it’s due to job loss, illness or simply poor choices, a little planning and awareness of your own situation really can make all the difference.”

The New Year is an excellent opportunity to sit down, review what you’ve been doing, set goals and decide if you are on the road to financial bliss or disaster. Take Charge America offers 10 Tips for evaluating your financial health and provides resources for future planning.

1. Get a free credit report. Finally, the government has made it easy to get a free copy of your credit report. Go to www.annualcreditreport.com.
2. Lock in a mortgage. Do you really think interest rates can go down?
3. Pay off unsecured debt. As interest rates go up, debt (unless locked in) will cost more.
4. Save. Always a good idea, but as interest rates go up, debt becomes a greater burden while your savings account can earn more than ever. Sadly, 57% of Americans don’t have a savings account.
5. Check your tax withholding. The IRS (www.irs.gov) has a great little tool for computing your withholding. Make sure you’re paying the right amount. It isn’t smart to pay too much (thus, granting Uncle Sam an interest-free loan) nor do you want to get stuck with a large tax bill.
6. Prepare a net worth statement. Do you know what you’re worth? Most Americans don’t; just remember, you can’t tell if you’re improving financially if you never write it down.
7. Make a will. 60% of Americans don’t have a will. If you can’t afford an attorney, you can purchase low cost forms or software online. (a few examples include www.legaldocs.com or www.nationallawforms.com)
8. Get a physical. Illness is a leading cause of financial distress. Americans work too hard, exercise too little, eat poorly and avoid medical help. If you are healthy, you will not only avoid medical expenses, but you can take better care of your finances.
9. Go to school. Experts predict that the average American will make no less than three lifetime career changes. Are you ready for your next move? A better education can mean more opportunities and more income.
10. Make a budget. If you don’t write down your income and expenses, you won’t control your income and expenses. You are wasting money and you probably don’t know where it goes.

For more free information on budgeting, call Take Charge America toll free at (866) 528-0588 or visit www.takechargeamerica.org.

About Take Charge America
Founded in 1987, Take Charge America, Inc. (TCA) is a non-profit 501(c)(3) charitable organization headquartered in Phoenix, AZ. TCA is committed to helping consumers gain control of their finances and offers a variety of services including education, budget and financial counseling, and when necessary, debt management.

TCA also serves as an effective resource for the business community. We help financially distressed consumers re-organize their finances and return hundreds of millions of dollars annually to financial institutions, professional service providers, and businesses of all sizes and descriptions that may otherwise have been lost to the economy in bankruptcy. TCA’s diversified programs are utilized by tens of thousands of families and single men and women throughout the United States each year.