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Archived Press Releases, 2001

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Achieve Personal Financial Success in the New Year
Springboard Provides Tips to Help Consumers Start Off the New Year Right

Riverside, CA - December 28, 2001 - New Year's resolutions are tradition among many, a time to re-evaluate, wipe the slate clean and make a fresh start. Many will resolve to go to the gym, spend more time with their family or to be more patient.

Springboard, a non-profit consumer credit management organization, recommends consumers include the goal of achieving personal financial success among their New Year's resolutions. Many may think it is too hard to turn their finances around, but with a little self-discipline and re-evaluation, consumers can improve their situation.

"Many consumers will be facing post-holiday shock when they receive their credit card bills in January," said Dianne Wilkman, President and CEO of Springboard. "This would be a good time for people with financial concerns to sit down and resolve to make 2002 the year they get their financial life in order."

With that thought in mind, Springboard encourages consumers to follow several easy tips to help improve their finances in the New Year.

Their recommended resolutions include:

• Stick to a budget - Start by determining how much money you take home every month. Then list your monthly bills. This should give you a good idea of how much you have to work with for food, gas, clothes, entertainment and other expenses. The key to maintaining a successful budget is to make sure you don't spend more than you make. If you live beyond your means and use your credit cards, then you could be on the road to financial unrest.
• Get a financial check-up - Review your credit report to give you a good idea of where you stand financially. Credit counseling organizations such as Springboard can help you obtain and understand your credit report.
• Buy what you need - Too often we base our buying decision on emotions instead of facts. Ask yourself if you can buy it for less somewhere else or if you really need it at all. We know this is hard but spend money ONLY on what you need and you will significantly reduce your expenses.
• Save for tomorrow - Start saving money. If you can, at each pay period save some to your savings account. A healthy savings account prevents you from having to borrow money when emergencies happen.
• Settle outstanding debt - A big resolution is to meet the credit obligations you have made on time. You will eliminate A LOT of stress if you get caught up on your bills and debt payments. Also, your credit rating will improve dramatically if you stay on top of your long-term obligations.
• Seek professional credit counseling assistance if you need help - If you find yourself over-obligated and in over your head, there is no shame in seeking help from experts. Credit counseling organizations, such as Springboard, offer settlement and debt reduction services and can help identify where you may have gone wrong to help steer you back into the right direction.

"You will be amazed how much stress will be reduced when you get your financial life in order," Wilkman said. "And, as tough as it may be, adopting these resolutions into your everyday life will vastly improve your financial situation."

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit their web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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Think Before You Do It - And I'm Not Talking About Sex!
By: Dianne Wilkman

The facts are scary:
According to the Consumer Federation of America, within their first year of being a cardholder, one in five students can carry a debt of more than $10,000. Many consumer advocates and credit counselors say this heavy debt burden results in students switching majors, changing schools or dropping out altogether.

Of the projected 1.4 million people to declare bankruptcy this year, it is estimated that seven percent will be in the 18-24 age group, according to a recent study on students and credit cards by the United States General Accounting Office (GAO). Credit card companies bombard returning and first-time college students with offers of t-shirts, sports bottles or food to encourage them to sign-up. Many students will give into the temptation.

Fortunately, help is on the way. This past September, Governor Davis signed into law A.B. 521, "The Student Financial Responsibility Act," designed to provide higher-education students with relief from the escalating crunch of credit card debt. Today, Americans enjoy the broadest spectrum of credit choices on the planet, which contributes significantly to the high standard of living we enjoy. Credit empowers consumers by extending immediate and convenient purchasing authority. For some, credit allows the dream of homeownership or the perfect wedding to come true.

However, credit in the hands of a young individual who is uneducated about the personal responsibility associated with credit can lead to financial disaster. This is a growing and very serious problem with younger, college-aged consumers.

About 80 percent of college students have at least one credit card. Some use their cards to buy books or food, but most also use them for clothes, entertainment or vacations. And, without proper budgeting or financial education, students can eventually find themselves in substantial debt with several maxed out credit cards.

"The Student Responsibility Act" can help stop credit card abuse before financial ruin is inevitable. Among other things, the new law calls on California's three public higher education systems (the University of California campuses, the State College system and community colleges), as well as private and independent colleges, to regulate the marketing practices used on campus by credit card companies. More important, due to its long-term positive impact, the new law requires that credit card and debt education and counseling sessions become a regular part of campus orientation of new students.

Working for Springboard, an accredited, non-profit consumer credit counseling agency, I know that real-world, financial education is a must for students. Without it, students can find themselves overwhelmed with not only credit card debt, but student loan debt as well.

Some colleges and universities have some credit counseling in place. But it's imperative that colleges and universities across the state respond quickly to the new law in an effort to provide effective financial literacy education and counseling programs. While credit cards are a fantastic way for students to establish a credit history, many students think that they have all the money in the world to buy pizza, clothes, CDs and Spring Break trips with their new cards. Many parents do not know that their students are in trouble. In fact, according to the University of Indiana, more students are lost to credit card debt than to academic failure.

Credit counseling organizations such as Springboard stand ready to help students who are in over their heads in credit card debt or just want to learn more about budgeting and how to use credit cards wisely. Through better education in personal finance, students will not only learn how to use credit cards wisely, but also establish a positive credit reputation that will follow them into the future.

Dianne Wilkman is the President and CEO of Springboard, also known as Consumer Credit Counseling Service - Inland Empire, a 27 year-old accredited, non-profit organization helping individuals and families from Southern California and across the nation overcome their immediate debt and financial difficulty. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Dianne Wilkman
Phone: 1.909.781.0114
Email: SPRINGBOARD@credit.org

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Student Credit Card Debt Continues to Mount
Springboard Can Offer Students and Their Parents Aid and Knowledge

Riverside, CA - October 5, 2001 - According to the Consumer Federation of America, within their first year of being a cardholder, one in five students can carry a debt of more than $10,000. Many consumer advocates and credit counselors say this heavy debt burden results in students switching majors, changing schools or dropping out. Of the projected 1.4 million people to declare bankruptcy this year, it is estimated that 7 percent will be in the 18-24 age group, according to a recent study on students and credit cards by the United States General Accounting Office (GAO). Credit card companies bombard returning and first-time college students with offers of t-shirts, sports bottles or food to encourage them to sign-up. Many will give into the temptation.

About 80 percent of college students have at least one credit card. Some use their cards to buy books or food, but most also use them for clothes, entertainment or vacations. And, without proper budgeting or financial education, students can eventually find themselves in substantial debt with several maxed out credit cards.

Springboard, a non-profit consumer credit counseling organization, says that financial education is a must for students. Without it, students can find themselves overwhelmed with not only credit card debt, but student loan debt as well.

"It is imperative that colleges and universities across the nation implement effective financial literacy education and counseling programs," said Dianne Wilkman, President and CEO of Springboard. "While credit cards are a fantastic way for students to establish a credit history, many students think that they have all the money in the world to buy pizza, clothes, CDs and trips to Mexico with their new cards."

According to Springboard, many parents do not know that their students are in trouble. In fact, according to the University of Indiana, more students are lost to credit card debt than to academic failure. But, there can be a light at the end of the tunnel.

"Credit counseling organizations such as Springboard can help students who are in over their heads in credit card debt or just want to learn more about budgeting and how to use credit cards wisely," Wilkman said. "Springboard has accredited counselors who are available 24 hours a day, 7 days a week that can provide debt management advice and financial education courses for students."

Through better education in personal finance, students will not only learn how to use credit cards wisely, but also establish a positive credit reputation that will follow them into the future.

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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How to Financially Survive the Holidays
Springboard Offers Consumers Five Easy Tips to Help the Pocketbook

Riverside, CA - September 12, 2001 - Consumers spent an average of $850 last year on gifts during the holiday season, according to a survey by Deloitte and Touche. To help keep your pocketbook in check this year, Springboard, a non-profit consumer credit counseling organization, offers five easy tips:

• Set a budget - Decide in advance how much you can afford. If you have to use a credit card, set a limit and log each purchase.
• Make a list and stick to it - Write down everyone you plan to shop for and how much you want to spend on each person. By doing this, you help alleviate impulse buying.
• Watch for sales - Scan the newspaper for sales and pay attention to when items you would like to buy go on sale. Many stores have sales as the holidays approach so look for coupons, ads and sale information.
• Shop smart - Research the best place to buy the items that you need. Most discount retailers carry the same products as department stores.
• Be creative, yet frugal - If you have an artistic talent, make something. A photograph in a decorated frame or a collage can mean more to the person than a tie or a CD.

"By establishing a budget and doing some smart shopping, consumers won't faint when they see they their bank balance or their credit card statement," said Dianne Wilkman, President and CEO of Springboard. "You don't want the debt to outlast the gift."

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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Springboard Establishes Emergency Financial Counseling Hotline to Aid Those Affected by World Trade and Pentagon Tragedy
Non-profit credit counseling agency available to provide financial counseling

Families in New York and Washington, D.C. are only facing the beginning of their struggle. Many have lost loved ones, possibly the principal breadwinner of their household. Some have lost or will lose a place to work. Nationwide, citizens being called as active reservists will face financial considerations. And, many businesses across the nation will be hurt financially as impacted industries struggle with lost revenue and more layoffs. As the nation tries to find some sense of normalcy amongst this tragedy, there are thousands of families and employees that have been thrust into a period of deep grief and financial uncertainty.

Springboard, a non-profit consumer credit counseling organization, has established an emergency hotline for individuals and families affected by the tragedy so they can receive confidential financial counseling. Individuals and families can call Springboard's toll free number 1.877.222.7728 or go to their web site at www.credit.org to receive help and further information.

As individuals and families begin to pick up the pieces of their shattered lives, Springboard is available to offer its assistance with the following:

• Financial crisis issues
• Contacting creditors and trying to re-negotiate terms
• Referrals to local community resources
• Money management
• Budgeting

Springboard offers assistance with money management and budgeting through confidential counseling, debt management and education programs for consumers. Springboard, as seen in Parade magazine, is a member of the National Foundation for Credit Counseling and is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 counseling locations offering face-to-face, online (www.credit.org) and nationwide phone 1-800-WISE-PLAN (1.800.947.3752) counseling services.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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Consumers Find Real Value in Credit Counseling
By: Dianne Wilkman

While our nation's policy-makers continue to wrestle over elements of the long overdue bankruptcy reform legislation, millions of consumers across the country are facing the daunting prospect of how to manage mounting personal debt. Consumers looking to avoid bankruptcy and regain financial stability are taking matters into their own hands by unilaterally opting for credit counseling now, before it is mandated under the pending bankruptcy reform legislation.

The well-publicized overhaul of our bankruptcy laws has helped shine a light on the immense value of credit counseling, which is an integral element of the reform effort. This enlightenment is pushing thousands of consumers to take control of their own financial destiny by seeking out credit counseling immediately. The growing ranks of those turning to credit counseling for financial support have a dual positive effect. First, consumers are giving themselves the opportunity to regain financial stability before confronted with bankruptcy, and second, the credit counseling industry is priming itself to meet what is expected to be an enormous demand for its services once bankruptcy reform legislation is signed into law. While equally important, the latter of these two benefits debunks overblown concerns by some critics about the capacity of the credit counseling industry and its ability to meet consumer demands. In fact, the credit counseling industry is well positioned to accommodate an influx of debtors who will be obligated to rely on agencies like Springboard to examine and help rectify their financial troubles.

Still, some consumers remain unaware of the benefits of credit counseling and often ignore escalating personal debt until it's too late. These consumers are then left with only the limited option of declaring bankruptcy. While declaring bankruptcy may appear to be a quick fix for financial troubles, it can irrevocably damage an individual or household's credit report, hindering future purchasing power and even employment prospects. These sobering facts are why the credit counseling provision of the bankruptcy reform legislation is so critical.

During the past 5 years the number of consumers seeking credit counseling has grown by an enormous amount. Credit counseling agencies help these consumers regain financial freedom by helping them to repay debts without borrowing; many are then able to avoid bankruptcy. Some credit counseling agencies also provide a number of other valuable services, including analyzing consumer credit reports, settling outstanding debt, developing Debt Management Plans (DMP), providing homebuyer assistance, and generally serving as a personal financial counselor offering educational tools and knowledge that enables consumers to handle a wide range of complex financial issues.

Consumers, as well as the employers and creditors wishing to assist those with financial difficulties should not wait for bankruptcy reform legislation to be enacted before seeking financial assistance through a credit counseling agency. The urgency surrounding these circumstances provides an additional incentive to seek financial management assistance now before being overwhelmed by debt. In an effort to avoid any such demoralizing hardships, consumers should take immediate steps to get a better understanding of whether personal debt, of any amount, poses a threat to their financial stability.

Dianne Wilkman is the President and CEO of Springboard, also known as Consumer Credit Counseling Service-Inland Empire, a 26 year-old accredited, non-profit organization helping individuals and families from Southern California and across the nation overcome their immediate debt and financial difficulty. For more information call 1-800-WISE-PLAN (1.800.947.3752) or visit www.credit.org.

Contact: Dianne Wilkman
Phone: 1.909.781.0114
Email: SPRINGBOARD@credit.org

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Payday Lenders Must Self-Regulate
By: Dianne Wilkman

The landscape of urban America is changing. In California's most blighted neighborhoods, where seedy liquor stores and bail bondsmen once symbolized a neighborhood in decline, today payday lenders with their blazing florescent signs promising quick and easy cash have replaced liquor stores as the modern symbol of blight. In the neighborhoods that are home to the neediest Californians, one poison is replacing another, as the proliferation of payday lenders lure a growing number of desperate consumers who have few other financial options. Most critics believe this practice is nothing short of legal loan sharking and I have used those words myself, but we need to pause before we rush to limit consumer's credit choices. Through reasonable self-regulation, payday lenders can join the ranks of mainstream creditors and play a valuable role empowering consumers from all walks of life.

Payday loans are small, short-term loans made by check cashers or similar businesses at extremely high interest rates. For example, a borrower writes a personal check for $100-$300, plus a fee, payable to the lender. The lender agrees to hold onto the check until the borrower's next payday, usually one week to one month later, and only then will the check be deposited. In return, the borrower gets cash immediately. According to Consumers' Union, fees for payday loans can range up to $17.50 for a $100 loan. The maximum loan amount is $300 in California, and when these fees are calculated as interest rates they can be staggering; over 900% for a one-week loan and over 450% for a two-week loan.

Believe it or not, consumers can thank the State government for this predicament. The California Legislature sanctioned the payday loan industry five years ago. Since that time, payday lender outlets have increased dramatically. Today, California is one of at least 31 states where payday lenders operate legally. It has been reported that there are more than 3,000 payday lenders in California - more than the number of McDonalds and Burger Kings combined! Most payday lenders are located in urban or economically disadvantaged settings and statistics show that members of the military tend to be prime targets.

As California's energy crisis has proven, sometimes the heavy hand of government wreaks more havoc than good. Attempts by the State to rein in payday lenders have been unsuccessful over the years. This past July, State Assembly Bill 898 designed to protect consumers by heavily regulating payday lenders was interminably delayed. So, payday lenders have gotten a reprieve and another chance to clean up their act free from government over-regulation. For consumers this may be a blessing in disguise. It's important to recognize that in the absence of payday lenders, there are no other providers for small, short term, unsecured loans that can be obtained with absolutely no credit check.

The recent astounding growth of payday loan transactions attests to a consumer need that was not being met. Americans enjoy the broadest spectrum of credit choices on the planet, which contributes significantly to the high standard of living we enjoy. The fundamental premise of payday lending is not bad. Such loans do empower consumers by extending immediate and convenient credit. Adding to the spectrum of credit choices is a good thing. It's the absence of consumer-oriented lending standards and practices that plague the industry and imperil borrowers.

The acquisition of check cashing/payday lending outlets by larger, more credible financial institutions like Union Bank of California is a step in the right direction. These financial giants, recognizing the growing market for small, instant lines of credit, have scrambled to gobble up payday lenders. One benefit here is that they bring ATMs and other regular banking services back into low-income communities that had been previously abandoned by the big banks. But the reputation and professionalism of these popular lending institutions alone are not enough to fix the problem. Common sense measures like permitting a reporting entity to identify and restrict consumers who have multiple payday loans will safeguard these very same consumers and reduce lender losses.

Consumers who rely on payday lenders especially need the opportunity to repay their debt in installments, rather than having to liquidate in full or rollover the entire loan amount as is now practiced. Borrowers need to clearly understand the terms of payday loans. They should be given the flexibility to repay the loan over a reasonable time period with manageable interest rates and fees. The number of concurrent or consecutive payday loans one consumer can acquire should be limited in an effort to avoid a cycle of debt. And potentially one of the most beneficial acts of self-policing involves partnerships with credit counseling agencies. To its credit, the industry has already moved in this direction; an industry trade group, the California Financial Service Providers, has extended an olive branch to our California network of consumer counseling agencies through a referral program and an agreement to accept debt proration plans administered by counseling agencies.

If honored, the budding relationship between the credit counseling industry and some payday lenders will prove to be invaluable for all parties, specifically consumers. For some, the temptation to obtain quick cash is overwhelming. Through Springboard's credit counseling service, I have seen firsthand consumers who get caught in the web of a payday loan, entangled in a perpetual cycle of high-interest debt. Consumers who need quick cash may already be over their heads in debt. At a minimum, their household budget has hit the wall. The opportunity to provide these individuals with valuable financial counseling should not be ignored by lenders. Credit counseling agencies can help consumers regain financial freedom by helping to repay debts without borrowing or bankruptcy, and by offering educational tools and knowledge that enables consumers to handle a wide range of complex financial issues.

With the economy facing an uncertain future and the end of the energy crisis nowhere in sight, I strongly encourage the payday loan industry to move immediately to regulate itself. Industry-wide consumer protections must be implemented, with debt management and credit counseling readily available. The united goal should be to help consumers facing tough financial times avoid personal bankruptcies guaranteed to ruin a career or destroy a family's pursuit for a better quality of life. In the end, payday lenders must recognize that they won't avoid excessive government regulation unless they take the responsibility to unilaterally extend consumer protections. Oh, and one more thing; please tone down those tacky florescent lights.

Dianne Wilkman is the President and CEO of Springboard, also known as Consumer Credit Counseling Service - Inland Empire, a 26 year-old accredited, non-profit organization helping individuals and families from Southern California and across the nation overcome their immediate debt and financial difficulty. For more information call 1-800-WISE-PLAN (1.800.947.3752) or visit www.credit.org.

Contact: Dianne Wilkman
Phone: 1.909.781.0114
Email: SPRINGBOARD@credit.org

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SPRINGBOARD® Honors California Federal Bank and Career Partners with Recognition Awards

Riverside, CA - May 21, 2001 - Springboard, a non-profit consumer credit counseling organization, recently honored California Federal Bank and Career Partners with Agency Recognition Awards at their annual Board of Directors meeting. California Federal Bank (Cal Fed) was recognized as Springboard 's "Creditor of the Year" for 2000 and Career Partners was presented the "Community Partner of the Year" award for 2000.

Cal Fed was acknowledged for its active role in supporting the financial well-being of its customers by hosting several of Springboard 's San Diego counseling locations, participating as a board member on their San Diego Advisory Board and actively supporting Springboard 's Homebuyer Education Program. Sandy Matheus and Meredith Campbell of Cal Fed, accepted the honor. Both women represent CalFed on Springboard's San Diego Advisory Board.

"We thank Cal Fed for their support and their role in helping us educate consumers," said Dianne Wilkman, President and CEO of Springboard. "We look forward to a continued relationship with them in the coming year."

The "Community Partner of the Year" award was given to Career Partners, as the company had demonstrated an outstanding partnership with Springboard and the communities the agency serves. Career Partners, currently the only certified "One-Stop" agency and benchmark for additional "One-Stop" agencies, and Springboard have formed a solid alliance that has been instrumental in establishing Springboard's presence in the community. The award was accepted by Ana Marie Ruiz, deputy director of Career Partners and member of Springboard's Los Angeles Advisory Board.

"We look forward to strengthening the alliance between Career Partners and Springboard," Wilkman said. "We thank them for their ongoing commitment to serving the community and helping train unemployed persons and displaced workers so they can re-enter the workforce."

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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Springboard Re-elects Executive Committee and Board of Directors for 2001-2002

Riverside, CA - May 21, 2001 - Springboard, a non-profit consumer credit counseling organization, today announced the names of its 2000-2001 Executive Committee and Board of Directors.

"The members were re-elected because of their continued commitment to educating the public on credit and bankruptcy issues and their ability to understand the needs of both the consumers and creditors," said Dianne Wilkman, President and CEO of Springboard. "I am excited to continue working alongside the executive committee and board of directors and look forward to accomplishing our goals for the 2001-2002 year."

The 2001-2002 Executive Committee includes:

• Chairman - Susan Conjurski of Arrowhead Credit Union
• Treasurer - Bob Cusack, retired, Consumer Collector (founding member)
• Secretary - Bill O'Laverty of Provident Savings Bank
• Member at Large - Greg Matthews of Community Bank
• Member at Large - Richard Sandoval of RDS Consulting

The new Board of Directors include:

• Al Arguello of Bank of America
• Ramon Alvarez of Alvarez-Lincoln Mercury
• Michael Brown of John Laing Homes
• Al Ferguson, retired, Credit Bureau Reporting
• Sue Greenfeld of California State University, San Bernardino
• Rob Howard of Southern California Edison and NAACP, North San Diego County
• Joy Oglesby, retired, Consumer Education (founding member)
• Thomas Payne of University of California, Riverside
• Leigh Smith of Smith Business Systems
• Peter Villegas of Washington Mutual Bank

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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Credit Counseling Provides Genuine Reform For Bankruptcy
By: Dianne Wilkman

This winter, as bankruptcy reform legislation makes it way through the chilly corridors of the U.S. Congress, millions of consumers in Southern California and across the country are faced with the daunting prospect of how to manage mounting personal debt. With the economy slowing down and job layoffs becoming all too common, consumers looking to avoid bankruptcy and regain financial stability are turning to credit counseling, which is emerging as a genuine "reform" for the nation's escalating number of bankruptcies.

Unfortunately, some consumers, still unaware of the benefits of credit counseling, often ignore increasing personal debt until it's too late. These consumers are then left with the limited option of declaring bankruptcy. While declaring bankruptcy appears to be a quick fix for financial troubles, it can damage an individual or household's credit report and hinder future purchasing power and even employment prospects. The opportunity to avoid bankruptcy and receive credit counseling is extremely important for consumers, especially those living in Southern California. Southern California is ground zero for personal bankruptcies due to the huge number of filings and regional vulnerability to financial dislocation.

Our nation's policy-makers believe the reform of bankruptcy law is necessary to protect those who truly need bankruptcy relief while stemming the tide of filings that negatively impacts the health of our overall economy. In many cases, the refuge provided by declaring bankruptcy is necessary for those who are honestly struggling through tough financial times. However, bankruptcy should be avoided if at all possible and must not be considered a panacea for those who, through poor judgment and lack of personal responsibility, spend beyond their means.

The facts supporting bankruptcy reform efforts are quite startling. Despite a sustained period of record economic growth and one of the strongest economies in the United States' history, consumers are declaring bankruptcy at a torrid pace. According to the U.S. Chamber of Commerce, bankruptcies jumped from 348,000 in 1984 to 1.44 million in 1998. And some experts predict that bankruptcies will increase by 10 to 15 percent in 2001.

Why is this important? Because businesses continue to absorb over $40 billion annually in bankruptcy loses. As a result, households pay more than $500 a year in increased rates for goods by virtue of unpaid debt from bankruptcies that are passed onto consumers.

These troubling financial trends provide extra motivation for consumers to avoid pocket book battles by seeking credit counseling. During the past 5 years the number of consumers seeking credit counseling has grown by a huge amount. Many of these were able to avoid bankruptcy by receiving credit counseling. Credit counseling agencies can help consumers regain financial freedom by helping to repay debts without borrowing or bankruptcy. Some credit counseling agencies also provide a number of other valuable services, including analyzing consumer credit reports, settling outstanding debt, developing Debt Management Plans (DMP), providing homebuyer assistance, and generally serving as a personal financial counselor offering educational tools and knowledge that enables consumers to handle a wide range of complex financial issues.

In addition to the humbling stigma associated with personal bankruptcy, consumers declaring bankruptcy can expect their credit report to be blemished for years to come. When the need arises to secure financial support to purchase a new home, a car, or to pay off school loans, a history of bankruptcy can severely limit the financing options and purchasing power of many consumers. In a bankruptcy study recently released by Visa U.S.A. Inc. the vast majority of study participants who had declared bankruptcy would not recommend this course of action to a friend or family member in financial trouble. A large number of study participants were also turned down or found it difficult to obtain credit, paid higher interest rates and were even denied job opportunities because of their history of bankruptcy.

Last year, President Clinton vetoed bankruptcy legislation that Congress passed with bipartisan support. With President Bush now in office, it's not a question of if bankruptcy reform legislation will be signed into law, but how soon the new regulations will affect the lives of consumers from all walks of life. Consumers, employers, and creditors who wish to assist those having financial difficulties, should not wait for bankruptcy reform legislation to be enacted before seeking financial assistance through a credit counseling agency.

In Southern California, the housing and energy crunch leaves many consumers potentially vulnerable to financial difficulty. The urgency surrounding these circumstances provides an additional incentive to seek financial management assistance now before being overwhelmed by debt. In an effort to avoid any such demoralizing hardships, consumers should take immediate steps to get a better understanding of whether personal debt, of any amount, poses a threat to financial stability.

Dianne Wilkman is the President and CEO of Springboard, a 27 year-old accredited, non-profit agency helping individuals and families from Southern California and across the nation overcome their immediate debt and financial difficulty. For more information call 1-800-WISE-PLAN (1.800.947.3752) or visit www.credit.org.

Contact: Dianne Wilkman
Phone: 1.909.781.0114
Email: SPRINGBOARD@credit.org

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CCCS of Inland Empire Becomes "Springboard"
Non-profit Counseling Organization Renames Subsidiaries in San Diego, Orange County and Los Angeles

Riverside, CA - January 31, 2001 - Consumer Credit Counseling Service of Inland Empire (CCCS-IE) today announced it has changed its name to "Springboard, Non-profit Consumer Credit Management." As a non-profit consumer credit management source, the agency selected the new name to effectively represent the hope and empowerment their services provide to consumers with debt problems, and to streamline the service's identity among the parent agency and its subsidiaries.

Springboard 's corporate renaming campaign will include all of its Southern California subsidiaries, which currently operate as Credit Counselors of California in San Diego County and Money Management International in Los Angeles and Orange counties.

"At Springboard we seek to provide our clients the 'Power to Move Beyond' debt problems as our new tagline states. Our 27 years of experience in the credit counseling industry and full line of counseling services in Spanish and English help our clients reach a better financial position," describes Dianne Wilkman, President and CEO of Springboard.

Springboard assists individuals by developing a debt management process and establishing a re-payment program with creditors. Counselors help clients weed out unnecessary expenses and focus on creating a budget that is practical, meets the goals of a debt re-payment program and avoids bankruptcy. California typically leads the nation in the number of bankruptcy filings.

"Under our new name, Springboard will continue to offer those with debt and credit problems quality, confidential counseling services. Our accredited team of counselors is available for those in need of assistance at locations throughout Southern California," explains Wilkman.

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council On Accreditation of Services for Families and Children, with more than 35 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISE-PLAN (1.800.947.3752) or visit our web site at www.credit.org.

Contact: Susan Bierly-Craig
Phone: 1.909.781.0114
Email: springboard@credit.org

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