AICCCA Press Release

AICCCA Provides Five Strategies for Prioritizing Debt

Fairfax, VA - August 30, 2010 — Many U.S. families are struggling to meet their monthly obligations due to unemployment, reduced hours, unexpected major expenses and many other causes. Association of Independent Consumer Credit Counseling Agencies (AICCCA) encourages consumers to follow a simple strategy for prioritizing debt when income does not cover all expenses.

"It is difficult for families to cope when incomes are reduced or expenses increase to the point where not all monthly obligations can be met," said Dave Jones, president, AICCCA. "Consumers struggling to meet monthly bills should prioritize the expenses they have and communicate with those creditors they will be unable to pay or pay in full."

AICCCA Five Strategies for Prioritizing Debt:

1. Remove wants from your monthly expenses. In times of financial crisis the wants in life must be put on hold until finances improve. Cable television, extra phones (home or cell), gym memberships, entertainment (including eating out), recreational vehicles and other non-essentials should be cut.



2. Feed your family. It is common for some people, especially the elderly, to pay their monthly bills first and then not have enough money for food for the month. Be sure to set aside enough money for the month for groceries and necessary toiletries for your family before paying anything else.



3. Assess your housing situation, pay mortgage/rent and utilities. You need to keep yourself and your family sheltered; however, if you are struggling to pay a mortgage that you simply cannot afford, it may be better to consider options for moving to more affordable housing. Your housing payment and household utilities should be paid next after food.



4. Consider your transportation needs. A two car family may consider downsizing to one car if everyone can still get where they need to be. Your car payment and insurance should be paid next after housing and food expenses.



5. Pay unsecured debt after food, housing and transportation. Should you not have enough income to pay your credit card bills or to pay the entire amount due, communicate with your creditors and let them know your current situation. Once your situation improves you can begin to make payments again. If your circumstances do not improve, you may have no other alternative but to contact a qualified attorney and determine if you are a candidate for bankruptcy.

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 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.