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27 Dec, 2019

American Consumer Credit Counseling on Top Money Mistakes to Avoid in 2020

BOSTON (PRWEB) December 26, 2019 – Making better money choices allows consumers to strengthen their finances and avoid debt. Financial mistakes here and there may seem innocent, but they can add up quickly and lead to bad habits and financial disaster. To help, national nonprofit American Consumer Credit Counseling (ACCC) explains five money mistakes consumers should avoid in the new year.

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“Consumers make mistakes, but too many financial mistakes can have a large effect on your future,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “Money mistakes can take a long time to correct. It’s important to know what your mistakes are, like falling behind on payments or everyday credit card use, and how they can impact your ability to live a healthy financial life.”

According to the Federal Reserve’s Economic well-being report, 75 percent of consumers say they are doing okay financially or living comfortably. The report also found that 17 percent of consumers can’t pay off their monthly bills in full, and 12 percent wouldn’t be able to pay their next month’s bill if they were faced with an unexpected expense of $400.

ACCC offers consumers five money mistakes they should avoid in 2020.

  • 1. Late payments – By falling behind on payments, consumers create a cycle of debt that is difficult to pay off. Late payments also come with late fees or interest charges and can have a negative impact on a consumer’s credit score.
  • 2. Not making a budget – Not making a budget and sticking to it is a very common mistake consumers face. A budget allows consumers to see where their money is going each month and if there are areas where they can cut spending.
  • 3. Abusing credit cards – Consumers abuse credit cards when they use them to cover their everyday expenses or to cover their budgeting shortfalls. Using credit cards can lead consumers to spend more than they can afford and rack up debt. With credit card debt comes interest charges.
  • 4. Not setting financial goals – Consumers need to set financial goals so they have steps to work towards. Some goals may include saving for retirement, buying a home, or paying off loans.
  • 5. Living paycheck to paycheck – When consumers live above their means and overspend, they are forced to survive too heavily on each paycheck. One missed paycheck can be disastrous.

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx