With credit more available than ever before, it's no wonder women sometimes find themselves buried under a pile of debt, their credit ratings taking a beating in the process. Getting help is the first step in reversing financial plights, and organizations such as the Consumer Credit Counseling Service of Central Illinois can show clients the way out.

CCCS of Central Illinois was established in 1966 by a group of concerned community leaders, according to Executive Director Sharon Law. "They saw a need for education in money management and also the need for an alternative to bankruptcy. Our agency's mission is to provide a nonprofit community service dedicated to delivering professional consumer credit education, confidential counseling, and debt management programs to all people in the community, regardless of ability to pay."

The agency provides a range of services for clients and their varied financial needs. "We have a Debt Management Program that serves the dual role of helping people repay their debts and helping creditors collect the money owed to them. We've mediated with the creditors to get interest rates lowered or waived and to have over limit and late fees stopped," she explained. "We also do credit report consults, whereby we provide credit reports and teach people how to read them and how to dispute any errors on the credit reports. Basically, we help individuals reduce their debt, make a budget, establish savings, and set financial goals."

Another service is preventative education and teaching consumers how to learn from their past mistakes, she said. "This is accomplished through educational programs such as Get Checking, budgeting classes, first time homebuyer's classes, and Credit When Credit is Due."

Law said CCCS of Central Illinois provides credit counseling for individuals-not companies-though their services do overlap at times. "Some of our clients are small business owners, and we do assist them in looking at their complete financial picture. If they decide to do the Debt Management Program, we can put their business credit cards on the program if they so choose."

Because Consumer Credit Counseling Service of Central Illinois is a nonprofit organization, Law said there's no charge for its financial counseling sessions. "We do charge a nominal fee for our credit report consults and our education classes. If someone decides to enroll in the Debt Management Program, there's a small monthly charge for it."

The agency obviously sees many financial mistakes on a daily basis, but she said the biggest mistake people make is living above their means. "The average American spends $1.21 for every $1 they earn. People tend to use credit cards to finance their lifestyle. Secondly, the average American has a 2 percent savings rate. Unfortunately, most Americans have no real savings. They tend to look to credit for help in an emergency and don't have an emergency fund. Most financial analysts say you need to have three to six months of income in an emergency fund."

Law said some mistakes are more common based on gender. "Women commonly don't save for retirement. If they're married, they plan on their husband's pension or savings. Also, women tend to shop when they're depressed or bored, and they tend to buy things that aren't budgeted for. In other words, we impulse shop. Men, on the other hand, tend to purchase large-ticket items-boats, motorcycles, motor homes, and expensive cars. Men tend to buy expensive toys. During our budgeting class, we address the psychological reasons people spend money. We discuss the money games we've all played at one time or another."

One mistake that doesn't discriminate across gender lines is being unaware of the state of your credit report. "Everyone should look at his or her credit report once a year," she said. "You need to make sure you're not a victim of identity theft. You also need to know your credit score and whether everything is accurate on your credit report. If you have anything that's reporting derogatory on your credit report and it's causing your score to be lower, you need to clear it up. Employers are now pulling credit reports. You could lose a potential job due to inaccurate information or poor credit. Anytime you're planning to make a large purchase on credit, such as a home or car, you should pull your report to make sure everything is okay. It can take up to 30 days or more to clear up a mistake on a credit file."

Home ownership is probably the largest purchase a person will ever make, which makes it potentially the largest pitfall for people unprepared for the purchase. "It's very important to take a first-time homebuyer's course," Law said. "By taking the course, you become knowledgeable about all aspects of the home buying process. It helps people be more confident and capable. Also, people who take a first-time homebuyer's course are much less likely to be a victim of predatory lending. People should also set up a realistic budget. Another mistake a lot of people tend to make is buying more house than they can afford. Before you buy, you need to know you can make the payments, have money left for savings, and still have money for some discretionary spending."

A large percentage of the CCCS clients are couples, Law said, which requires some special skills. "The key to successful money management for couples is communication. Everyone should have financial goals. It's certainly easier for an individual to establish financial goals than it is for a couple, but it's very important that they take the time to set goals. For couples with children, they should include the children in their discussion about money. Children whose parents teach them about money are much better money managers when they become adults than are their peers. Keep this in mind: divorced couples cite the number one reason for their divorce as money or arguments about money."

Law said there are many reasons she enjoys her work with Consumer Credit Counseling Service of Central Illinois-not the least of which is that she can make a difference in someone's life. "It's so rewarding to be able to assist people in achieving their goals, whether it be to become debt free, purchase their first home, establish a savings plan, or learn to budget and stick to it. A lot of people come to us to alleviate the stress they're dealing with in their lives. Dealing with money problems is very hard. It affects everyone in the family. People with money issues are much more likely to have problems at work. It's wonderful to be able to help people make their lives more manageable."

The most difficult task the organization faces is making sure they get the message out about who they are and what they do, she said. "I want everyone who needs help with their finances to know we're here and we want to help. It's sad to think people struggle with this alone when they don't have to." TPW