Rotary Program: 7/27/05

Program Chairperson: Terresia Blackburn

Speaker: Candace Smyth, Credit Counselor, Consumer Credit Counseling Services

Candace Smyth is originally from West Virginia, but now makes her home in Paintsville, Ky. She is a certified financial counselor with the Consumer Credit Counseling Services, located on the 4th floor of the US Bank building in downtown Pikeville. This office is a non-profit organization that seeks to help people whose level of debt has become a problem in such a degree that they are paying so much interest and late fees that it is impossible to reduce the principal of their debt. They also provide information to the public through educational seminars to schools, civic groups, and other organizations. Candace says that 65% of all adults over 18 have one or more credit cards and that 40% to 50% of those people are behind on their payments, are paying too much interest, and having to pay late fees. The interest may be between 20% and 30% and late fees may be as high as the amount of the payment itself. Her company works with the credit card companies to reduce the amount of the interest and late fees and set up a payment plan that the client can live with. They also work with law enforcement agencies to help clients who are the victims of identity theft, a growing concern in the past few years. Candace says there are some basic tips to using credit cards wisely. Some of them include:

* having no more than 3 cards (including gas cards)

* maintain a balance that you can pay off at the end of each month

* be aware of the annual percentage rate of interest on each card you use.

* avoid using a credit card for purchases you would normally pay by cash

* avoid impulse buying - make sure it is a need and not just something you want.

She also says there are some warning signs to look for that indicates that you are in need of credit counseling services. If 20% or more of your take-home pay is being paid to credit card debt, if you are paying only the minimum payment and never retiring the principal, if you are getting phone calls and letters from creditors, and if you and your spouse are constantly fighting about finances, perhaps you need the help of a financial counselor. You definitely need help if your are being sued, if your wages are being garnished by creditors, or if your debts have been turned over to a collection agency. If anyone is considering bankruptcy, their services may help avoid that step. In fact, a new law that will go into effect in October will require the individual to seek help from a credit counseling service at least 180 days before filing for bankruptcy. She also gave us a toll-free number if anyone would like to check on their credit report. You can call 1-877-322-8228 or you may check on the internet at www.annualcreditreport.com. If Candace can be of help to any of us, she encouraged us to call her office at 606-433-0953. Submitted by JMC