AICCCA Press Release

AICCCA Advises - Continue to Save Even as Recession Eases
Four Saving Incentives

Fairfax, VA - October 6, 2010 — The U.S. savings rate increased slightly for the month of August to 5.8 percent as reported by the Commerce Department. This is a remarkable turnaround from our year-long negative savings rate of minus 0.5 percent for 2005. AICCCA advises consumers to continue to save even as the recession eases and personal finances improve.

"Savings are essential for American families to enjoy secure personal financial lives," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "Without proper savings, families are more likely to face bankruptcy, home foreclosure and/or a ruined credit history."

AICCCA offers the following four incentives to save:

• Get paid first. Waiting to fund savings until everything else is paid will not work; you need to pay yourself first. Determine an amount you can afford and put that money aside first, every time, before you pay any bills or other expenses.



• Be prepared for the unexpected. First priority for savings is to accumulate three to six months of living expenses in an emergency savings fund. This fund will help you to avoid going into debt to pay for unexpected expenses or make up for a loss of income. Ultimately your savings cushion could save you from bankruptcy or home foreclosure.



• Reach your financial goals. Planned saving will help you satisfy your short-term goals such as a new piece of furniture or a weekend getaway. You will also successfully fulfill your long-term goals of college tuition or a vacation home.



• Make it to 10. Commit to saving a portion of all future income increases, including raises in pay and bonuses. Your ultimate goal is to save 10 percent of your income each year.