Gene Jolley, President of Kingdom Financial Principles (KFP) and creator of the Rapid Debt Reducer software, has been helping individuals, families, and companies understand the processes that drive the financial engine of America. Education is key—not just from being able to understand how to create and operate a budget, but because there is so much “misinformation” out there. We are being told thing about money that simply are not true and Jolley is sifting out the muddy waters of deception so that those who wish may see clear to set sail on the course of financial prosperity.

Creditor and Consumer

Many people face difficulties when it comes to the proper handling of credit. The system of credit by ethical standards should be administered by creditors and used by consumers with caution and self control. Unfortunately, both creditor and consumer fail when it comes to handling credit and the result is waves of debt crashing on the shores of bankruptcy. Creditors know the problems consumers face concerning debt as well as consumer weaknesses when offers of “easy” credit fill the mailboxes of Main Street USA. Yet the problems of debt do not deter these creditors from continued offers of credit. This is corporate greed—irresponsible and wrong! But consumers cannot blame just the credit industry for their financial woes. Indeed, consumers are as much to blame, if not more, for their irresponsible use of credit. You want a credit card? Why? So you can purchase those things you’ve been wanting for the past couple of years but haven’t been able to afford? So you can afford car repairs that you’ve needed but haven’t had the cash? So you can have enough to put groceries on the table after the monthly bills have been paid? So you can put Christmas presents under the tree that otherwise would not be there. These are legitimate claims and only a fraction of the list that signals to us all that life is often difficult on this Island we call Earth. But credit is not, has not, and will not be the answer to these problems. The answer is, more so than not, consumer education.

Consumer Education

Besides the above reasons why many consumers end up in debt, there are also others that range from moods of depression where shopping becomes the usual, to the use of credit during times of sickness or unemployment, to disorders such as compulsive shoppers, to illegal use of your credit card through theft, to just plain outright abuse on the part of the consumer. In all of these areas (except for maybe the last) there is help through consumer education. When informed over matters of money, consumers are enabled to make better choices concerning their financial future. Whether it’s through self-help, credit counseling, a debt management plan, or bankruptcy, knowledge is the most powerful asset a consumer can own. The couple earning $30,000 a year may dream of how much better off they’d be with a $100,000 a year income and another couple with $100,000 may think the same of a $150,000 a year income—why? Because the couple earning $30,000 a year have been struggling to survive on a $35,000 lifestyle and the couple with $100,000 on a $125,000 lifestyle. The first step to knowledge is the realization that size of income is irrelevant whenever the recipient fails to live within their means.

Is credit counseling right for you?

Again, the answer of what is right when it comes to handling financial matters will become clear when the one asking the question becomes fully informed of the options. The question before us is should the consumer seek credit counseling? Well. Reading this article is, in a way, a form of credit counseling. The intent of this article is to emphasize the importance of consumer education in money matters and that education is especially important when it comes to employing the services of a credit counseling agency.

There are risks

In recent years many horror stories have surfaced where so-called credit counseling agencies have literally swindled consumers out of large amounts of money. This should not be a reflection of all credit counseling services for much good can be accomplished when the right agency is paired with the right consumer. But finding the right agency can be as daunting as solving your credit problems on your own. In November of 2003 the FTC, IRS, and State Regulators issued warnings when seeking help from credit counseling agencies. In May of 2004 the FTC testified of credit counseling abuses and one week later the FTC prepared a statement outlining consumer protection and rights over issues pertaining to the credit counseling industry. The FTC offers a free publication Knee Deep in Debt, highlighting topics on Self-Help, Credit Counseling and Debt Management Plans, Debt Consolidation, Bankruptcy, Debt Negotiation Programs, Damage Control, and more.

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