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business Consumers take another major hit to the wallet in 2006 PHOENIX, Anz. Amencans are headed into the New Year bauding record heating costs, high gas prices and mounting receipts from the holidays. Now, 10 add to their woes, mil lions of credit cand holders are finding significant increases © their minimum payments. For the next few months, their minimum payments could even double undl their credit card balances are reduced. MBNA, Ciabank, Discover, Capital One and Bank of America have announced they are implementing January 2003 guidelines issued by the Federal Reserve, requiring the monthly increase. Credit card holders are now required to pay amounts that could easily equal 4 percent of their total balance each month, while 2 and 2.5 percent was standard unul 2000. More banks are expea ed to follow suit. Mike Sullivan, director of education tor Take Charge America, a non-profit credit counseling company, savs many card holders will ke a financial hit in the short run, but its more important think of long term goals. "It vouve only been paving the minimum balance on vour credit card, it might be a strug gle to come up with extra cash each month,” he said. “Jus keep in mind, youll be making those payments for a drastically shorter time period, and poten tally saving thousands of dol lars in the long run.” Sullivan adds that the real impact of this change is the indusion of the fees and some of the pnncipal amount that must be paid. It a dient is in some trouble, they may have late fees of $29 a month, with interest at 2.42 percent a month, plus the 1 percent of the principal. If that dient has a $5,000 balance, the $29 late fee is equal to another 0.58 per cent of their balance, thus get ting the total up o 4 percent figure that's been kicked around in financial cirdes. “In the past, the consumer may only have been required to pay the periodic interest, and possibly less in some cases,” Sul livan said. The credit card industry says average houschold consumer debt in the United States is abour $9,000, exduding mon gages. Many of those Ameri cans are living pay check to pay check and fear the added pay ment could be the final straw that pushes them into financial ruin. Sullivan has several sug gestions to prevent that from happening; Make a budget and stick 1o it. A big shoe sale is not a reason to stray from the plan. Write the budget down and check it frequendly. Visit a credit counselor. If you are positive you cant make your minimum monthly pay ments, creditors have special programs that may be able o reduce monthly payments. Furthermore, new laws require people filing for bankruptcy to meet with a aredit counselor at least twice. Meeting with one now, could prevent the mess altogether. Move vour pavment due date w several days after you receive vour pavcheck. This ensures you will have the money 0 make the payment, as well as less time 0 spend vour money on other items. Dont apply tor more credit cards. 1t you are struggling o meet the monchly pavments tor the cards vou have now, its almost cerain vou wont be able 0 attord vet another monthly pavment. Use vour ax retum o pay credic card debr. - Dont wait o file vour W 2, The sooner vou file it, the sooner vou'll receive a retund. Paving oft a large chunk of your balance will reduce the amount of your monthly pavments. Use vour savings to pay cred it card debr. It vou have SIOO I d Savings account at 3percent interest, vou will earn a litde more than $3 i one year. It the savings is used to pay off SIOO on an 18 percent card, vou will save SlB, six times the interest vou would have eamed in vour account. Cur down on entertainment expenses. Wait for movies to come out on DVD, rather than Pat hetfegson VA FHA Conventlonal approved Call and make an appointment today’ Jefferson Appraisal Pat Jefferson Realty 1126 Tl¢h Street Augusta, Georgia 30901 Serving the investment needs of the community. o& i A "‘ e e T e et ,;f .- !l;' ger Rl ; : % Constance L. Woods Financial Planring Speciakst Financial Consultant investment Management Specialist Retrement Plan Consultant One Tanth Steet. Sute 600 Augusta Ga 30901 (706) 823-8144 wrerw e smithbarney comwoods THIS IS WHO WE ARE. THIS IS HOW WE EARN IT." SMITH B!\RNEYIIr / U 0 Lt o Glatal Marhale re AR righie rmancved Meadur BPC Souih Bermey @ 8 Genion sl serece wank of Ciigrouy SNGemanD 14 Sarve® Amiat o Suioup 4 s AR 00 SR oot e b eT ot shelling out S2O for two tickets, and despite what java junkies sy, Sarbucks is not a daily necessity. Think more along the lines of brown bagging and board games. About Take Charge America Founded in 1987, Take Charge America. Inc. (TCA) is a non profit 501(c)(3) organization headquartered in Phoenix, AZ. TCA 15 committed to helping consumers gain control of their finances and offers a vanety of services including education, budget and financial counseling, and when necesary. debt man agement. TCA abso serves as an effective mwsource for the business commu mry We help financially dis tressed consumers re-organize therr finances and return hun drech of mullions of dollars annu ally w financial instituzions. pro fessional service providers. and bustnesses of all sizes and dexcrip nons that may otherwise have been lost to the economy in bank ruptey. TCAs divensified pro grams are unlized by tens of thou sandls of families and single men and women throughout the United States each year i @ Buy A Home? .. MAKE SURE IT'S WORTH ITX it you want 1o know the real value Call JEFFERSON APPRAISAL COMPANY (708) 7226338 ‘Financial Planning ‘Money Management ‘Estate Planning ‘IRAs and Pension Plans ‘Government Securities ‘Tax-Free Bonds ‘Corporate Bonds *Stocks and Bonds ‘Mutual Funds ‘Annuities AUGUSTA FOCUS FEIEE ReLT P R R N R SR TR S R A . g, Jiat e 2 5 BT e ooy ¥ . f P g ';\:«:.‘ ] g S BRI o v : : Bt o ' PR SR i 11 % TG ;%f% o) 1% j's LR £ 8 TR i ; i P LT el s i BSR S f?if%..“,::1,,. 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