Avoiding Debt

Overwhelmed with debt? The Financial Planning Association offers the usual ideas for digging out--don't used credit cards, pay down debt as fast as you can, consolidate debt. But it also suggests looking at how you got into trouble in the first place. "Yes a job loss, market decline or other financial catastrophe may have precipitated your debt problems, but typically deeper problems underlie our inability to weather the difficulties."

The association offers these ideas to consider so you don't make the same mistakes again:

• If your stock portfolio was decimated, diversify in the future. Especially, don't put all your money into your own company's stock. That may be the company that lays you off.

• If you don't have an emergency fund with three to six months' living expenses in easy-to-access accounts, set one up now.

• "Too much debt accumulated when times are good can break your back when income declines."

• Mishandling stock options in a declining market can generate a huge tax bill for a stock whose value is plummeting, leaving you without the resources to pay the bill.

Resources
Financial Planning Association
Financial Planning Association
Phone: 404-845-0011
Toll-free: 800-322-4237
E-mail: membership@fpanet.org
Website: www.fpanet.org