ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Wednesday, December 6, 1995 TAG: 9512060035
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
COLUMN: Marketplace
SOURCE: MEGAN SCHNABEL
How many credit cards are you carrying in your wallet?
If you're an average American - one of those with 2.4 kids - you have 2.3 Visas or MasterCards, according to a survey by RAM Research Group of Frederick, Md. The survey didn't even start to count Discover cards and American Express cards and plastic from department stores and gasoline companies and ...
Cardholders have been on a buying binge in 1995 - they've charged 24 percent more than last year, according to RAM - and Christmas charges alone are expected to reach $120 billion this year.
If you've been contributing to that mountain of debt and are just now discovering that you may not be able to meet your monthly payments, you may want to take a look at a pamphlet called "What You Should Know About Debt Collection." It's published by the National Consumer Law Center in Boston, and it includes tips for repaying your debts and dealing with collection agencies.
Deciding which bills to pay first - or pay at all - isn't easy, as you won't be able to please everyone. But the NCLC offers these suggestions to help you set priorities:
The mortgage or rent always comes first. Read the fine print in your loan or rental contract if you've forgotten the consequences of late or missed payments; they're severe.
Pay whatever amount is necessary to keep your essential utilities turned on. Utility companies may not require payment in full, even if you are behind. This is no time of year to be left in the cold and dark.
A car loan should be paid after critical items - food, rent, clothing - but before most other debts for nonessentials.
The threat of a lawsuit should not raise the priority of a debt above that of mortgage, rent, utility payments or a car loan.
Debts without property pledged as collateral - credit cards, doctor and hospital bills, accounts with merchants - should have lower priority.
Federal law prohibits harassment by collection agencies or lawyers. You often can head off harassment before it starts by calling your creditors and explaining your financial situation. Tell them you have to pay your rent and utilities first, but you will pay your other bills as soon as you can. Don't make promises you're unlikely to meet; it's better to be realistic.
Copies of "What You Should Know About Debt Collection" are available from the Legal Aid Society of the Roanoke Valley, 416 Campbell Ave. S.W., 344-2088.
Here are a few publications that offer more information on your legal rights and debt strategies:
NCLC publishes a handbook called "Surviving Debt: Counseling Families in Financial Trouble." It's available for $15 from National Consumer Law Center, 11 Beacon St., Boston, Mass. 02108. Or call (617) 523-8010.
Nolo Press, a publisher of self-help legal books, offers a kit called "Rebuild Your Credit," which includes tips on negotiating with creditors and cleaning up your credit file. It's available for $14.95. Call (800) 992-6656. Or, for customer service, (800) 728-3555.
The National Center for Consumer Education publishes the "Do-It-Yourself Credit Repair and Improvement Guide." A single copy is $10 plus $2 postage; larger orders may receive discounts. Call (800) 837-6729, or write NCFE, Money-Book Store - (QP Desk), P.O. Box 34070, San Diego, Calif. 92163.
If you haven't hit credit overload yet but are afraid you might not be able to stop yourself from overspending this Christmas, the National Center for Financial Education wants to help you practice safe shopping.
The center is offering credit card condoms - non-tear plastic sheaths and stickers for your credit cards with these messages: "WARNING: Overuse Can Be Dangerous to Your Wealth!'' and "Should We Charge it???'' and "Can We Afford it???''
They make great gifts, too. Paul Richard, vice president of NCFE, says that nearly half of the orders have requested that the safe-shopping packages be sent to spouses, kids or other big spenders. Those ordering them usually ask to remain anonymous.
For $3, you'll get five condoms, 10 warning stickers and a series of tips for safer spending. Or send $1 and a self-addressed, stamped business-size envelope for two pamphlets: "How to Spend Smarter for Household and Grocery Items" and "NCFE Spender's Profile."
For either of these offers, write: NCFE, P.O. Box 34070, San Diego, Calif. 92163.
And, no, you can't charge it.
LENGTH: Medium: 93 lines ILLUSTRATION: GRAPHIC: Chart: Shopping with credit cards. color.by CNB