If you're in debt, you're not alone. Consumer debt in America  is extraordinarily high. Sometimes it's hard to know - or admit - if you have a problem with debt. It can be overwhelming to realize that you've gotten in over your head, and to worry that you won't be able to pay back what you owe. The key to getting out of your situation is to act now. Don't procrastinate. Taking charge of your finances and creating a plan for tackling your debt will cut down your anxiety and get you on the path toward a better financial future.

First, ask yourself whether debt has become a problem for you. Here are some circumstances that might indicate it has:

• Next month's bills arrive before last month's have been paid
• Your bills often include late fees
• You avoid opening bills when they arrive in the mail
• You procrastinate balancing checkbooks
• You bounce checks

Write it Out
Do you actually know how much debt you have? Many people don't. Start by making a list of everything you owe, whether it's a mortgage, a credit card balance, student loans or even money you borrowed from family or friends. Write down:

• The lender's name
• The amount you owe
• The term of the loan
• The interest rate and fees

Then total them up. Looking at the numbers can be worrisome, but this is a positive - and necessary - first step to tackling your debt.

The power of 50
Paying the minimum amount due on your credit cards is one of the fastest ways to fall further into debt, and it can keep you in debt for years or decades.

If you have a credit card with a $3,000 balance at an annual interest rate of 18%, and you pay only the 2% minimum monthly payment of $60 per month, it would take you 8 years to pay off your bill. Not only that, you will have paid $5,780 by the end of the 8 years - almost double the $3,000 you thought you were spending when you made the charges.

Paying just $50 above the minimum amount due each month will make an incredible difference in how quickly you can pay down what you owe. If you pay an additional $50 per month toward your $3,000 balance for a total payment of $110 a month, you could pay off the debt in 3 years instead of 8, and save yourself over $1,800 in interest. Imagine what you could do with $100 more per month.

But if you can pay an additional $50 per month on that debt, for a total payment of $110 a month, you will pay down more of the $3,000 you originally owed. And that means less money for the creditor to charge interest on. As a result, you would pay off the debt in 3 years and save over $1,800 in interest payments.

Imagine what you could do with $100 more per month!

Be realistic
Now that you have analyzed your debt situation, it's time to look at your monthly budget and set realistic goals. That trip you had planned for next summer, or the new car you were hoping to buy may not be in the cards right now given your new outlook on reducing your debt. Use this free Rework Your Budget calculator to help you get your budget back on track.

Don't get discouraged
Reducing debt is like losing weight. You're not going to lose 50 pounds in a month - you need realistic goals in reasonable timeframes, and debt works the same way. For most people, it takes years to become debt-free. This doesn't mean you have to stop enjoying your life. It's just a reminder to live within your means and be diligent about adjusting any spending habits that have contributed to the situation you are in today. Dedicating yourself to paying off what you owe and becoming debt-free will be worth the wait, with the payoff being a brighter financial future.

Article from www.practicalmoneyskills.com

 Girls Mean Business

Girls World Expo 2012

Annual Activities Report

2011-2012

New & Updated Curriculum for 2012!

http://cfco.psu.edu/programs.html

The Center for Financial and Consumer Outreach is pleased to announceDriver's Training, Financial 411 and CashCourse to help students test their knowledge. To access these quizzes, visit our website.

 the release of several new and updated financial literacy programs for the  academic year. This year, some of our most popular curriculums including, Driver's Training for the Credit Card Highway and Financial 411 (formerly Getting A Smart Start with Money) have been updated to include the latest in financial literacy topics. In addition, the CFCO has developed short quizzes for students to test their financial literacy knowledge outside of the classroom.

Schools and non-profits are able to take advantage of the Federal Reserve Bank of Cleveland Learning Center and Money Museum, as well as free monthly videoconference programs for your classroom or organization. For more information on programming and services provided by the Federal Reserve Bank of Cleveland, click here.

If you are interested in learning more about the CFCO's financial literacy programs and initiatives, or get samples of the programs, please visit our website.

Program request forms are also available on our site at all times.

FREE Financial Webninar Available

Raising Money Smart Kids

Like many other subjects, children need instruction on basic financial skills - the building blocks that will help them make smart money choices in the future. Parents have the power to teach their kids sound, proven financial techniques that will help them grow into worry-free, successful adults. The CFCO's director, Erica Jackson, presented a financial webinar in partnership with the Pennsylvania Treasury Department to help parents tackle these issues. "Raising Money-Smart Kids" is now available on the Pennsylvania Treasury Department's website.

Financial EduNation is an online resource center offered by the CFCO in partnership with the National Financial Educators Council. This online tool is full of resources for students, parents, educators, and community leaders. Students can test their knowledge of financial literacy topics, while parents and educators can learn how to communicate more effectively with youth about financial literacy topics.

Qualified organizations receive complementary access to the comprehensive Financial EduNation resource center. This is provided on a first-come, first-serve basis. For more information about the Financial EduNation resource center, simply contact at our office at cfco@psu.edu. To visit Financial EduNation, click here.

Crime Prevention Month (October 2012)

Get Smart about Credit (October 18, 2012)

Girls Mean Business Video Submission Deadline (October 22, 2012)

Girls World Expo (November 4, 2012)

National Financial Literacy Month (April 2013)

Teach Kids to Save (April 23, 2013)

3rd Annual High School Symposium (May 15 - 16, 2013)

Money Matters Conference (May 2013)

Grant Opportunity

The Erie Women's Fund is now accepting proposals for a program or campaign designed to promote an increase in simple acts of kindness, an increase in the use of pro-social speech and behaviors, promote healthy civic debate of important issues, build diverse beliefs, values and culture or e) promote civility as a central theme in everyday situations that impact self, family, employment and/or community. 

Projects must target Erie County youth up to age 18, be strategically placed for optimal exposure/impact and provide measurable results. Grant activities must occur between January 1 and December 31, 2013.

Applications are due to the Erie Community Foundation by noon on November 9, 2012.

For more information and eligibility requirements, click here.

Mindful Money

This month the CFCO's Mindful Money column will focus on the topic of Credit. Jessica Erickson, a banker with Marquette Savings Bank, will be lending her expertise and knowledge as this month's Mindful Money financial experts.

To register for the monthly Mindful Money column, click here.

"Like" Us on Facebook 

If you have not already "liked" the Center for Financial and Consumer Outreach, you may want to in order to stay up to date on what the CFCO is doing.  New outreach initiatives, CFCO events, and the latest in financial news are all posted regularly on our Facebook page in an effort to keep consumers informed. 

To "like," search "The Center for Financial and Consumer Outreach," or click here. 

Contact Us

Erica Jackson, Director

ekj2@psu.edu

(814)-898-6784

Chris Holmes, Graduate Assistant

cmh5282@psu.edu

(814)-898-6553

Amanda Shields, Intern

ars5458@psu.edu

Quick Links

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CFCO Homepage

Our new website is equipped with everything that you need to set out on the road to becoming financially savvy!

On our new site, you will find links to current financial news, a background on our center, a list of our current programs complete with a program request form, and our contact information.

Join the Conversation!

In honor of "Get Smart About Credit Day" taking place on October 18th, we want to know:

Where did you learn about credit?

Vote Here

Additional Resources

CFCO's Financial Calculators:

 NEW! Tooth Fairy Calculator

Saving for a Goal

Back to School Budget

My Bonus After Taxes

Save A Million Dollars

Mortgage Payment

For more information and more financial calculators, visit the CFCO's website here.