AICCCA Counselors Say Saving is Number One Way to Prevent Financial Problems

FAIRFAX, VA - October 24, 2011 — The U.S. economic recession is far from over. Consumers are beginning to spend again, but the economy is not back to pre-recession levels as many Americans are still unemployed or underemployed. The Association of Independent Consumer Credit Counseling Agencies recommends that families bolster their own personal economies by saving.

"Savings are essential for American families to enjoy secure personal financial lives," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "With proper savings, families are much less likely to face bankruptcy, home foreclosure and/or a ruined credit history."

1. You deserve to be paid first. Waiting to fund savings until everything else is paid will not work; you need to pay yourself first. Start with what you can afford and move to at least 10 percent of your net income. Put that money aside first, every time, before you pay any bills or other expenses.



2. Protect yourself from the unexpected. First priority for savings is to accumulate six to 12 months of living expenses in an emergency savings fund. This fund will help you to avoid unwanted 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.



3. To fund 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.



4. Form a lasting habit that adds financial stability. Commit to saving a portion of all future income increases including raises in pay and bonuses. Your ultimate goal for savings is to be prepared for emergencies, to fund major expenses and retirement.



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.