Ten Red Flags Serve as Warning Signs of Too Much Debt


Fairfax, VA — March 24, 2004 - Americans are in serious debt. Credit card debt reached $735 billion or nearly $7,000 per household in January and will likely continue to rise. Personal bankruptcies for year 2003 rose to 1,625,208 an increase of 108 percent since 1994.

"We live in a buy now, pay later society," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "And for some consumers the bill has come due and they cannot pay."

To help, AICCCA offers the following ten red flags as warning signs of too much debt:

P  Can afford to make only the minimum payment due on credit card balances.

P  Payments to creditors are late or missed for more than a month.

P  Debt-to-income ratio is more than 20 percent.

P  Do not know how much you owe.

P  An interruption of income would cause immediate difficulty paying bills.

P  Use credit cards to purchase basics such as groceries because you are out of money for the month.

P  Avoid answering the phone because of creditor collection calls.

P  Credit cards are maxed out.

P  No savings cushion.

P  No or inadequate insurance - medical, life, disability.

If more than two or three of the above red flags apply to your personal financial situation, AICCCA suggests you take a serious look at your finances and seek professional help if you cannot get back in control alone. To reach an AICCCA member office, call (800) 450-1794 or visit www.aiccca.org.

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 (800) 450-1794 or visit www.aiccca.org.