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CEO survey: Save your cash in 2010 [The Orlando Sentinel, Fla.]

By Richard Burnett, The Orlando Sentinel, Fla., Source: MCT Business News

Dec. 24--If there were only one tip credit counseling experts could give you in 2010, it would be this: Save your pennies...and dimes and dollars, too.

That was the No. 1 piece of personal finance advice from the nation's top consumer credit counseling executives, according to a new survey released this week.

With unemployment and foreclosures still on the rise, consumers must make every effort to sock away more cash to cover themselves if they face unexpected job loss or other emergencies, the National Foundation for Credit Counseling poll said.

"Americans might ask themselves how they paid for their last emergency," the report said. "If it was with a credit card, that's a red flag. A person who cannot afford an emergency is not likely to be able to afford the interest, late charges, and over limit fees that could be associated with adding to their debt load."

Among other measures, consumers also should track their spending, create a budget, get their credit reports, improve their credit score, pay down debt, and plan for retirement, the survey said.

More than 100 chief executive officers of credit counseling agencies were surveyed. For more details, see http://www.nfcc.org/newsroom/newsreleases/index.cfm

Although the economy is expected to recover in 2010, it will still be critical for people to stay on top of their personal finances, said Richard Skaggs, chief executive officer of Consumer Credit Counseling of Central Florida.

"The foreclosure crisis is not subsiding. In fact, we predict there will be even more foreclosures in 2010," he said. "And with a lot of companies still laying people off, it is crucial to have six to nine months of cash in reserve to help you address the challenges you may face."

It is also important for people to keep up with the changes in the credit card industry, Skaggs said.

"With all the reforms going on, you could certainly be negatively impacted if you're not monitoring what is happening," he said. "We all know interest rates are going out of sight. People need to shop around and get the best deal."

You should also read closely everything that your credit card company sends you, Skaggs added. The disclosures may still have unprecedented fees and costs that you could avoid by shopping around or managing your credit spending better.

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Copyright (c) 2009, The Orlando Sentinel, Fla.

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