The Reality

• According to a 2007 survey from MSN Money, the average American household has an average of $8,000 in consumer debt. High consumer debt is usually a sign of poor money management and can lead to difficult financial situations for families.
  
  

Budgeting

• Creating a budget for all household income is the most important part of personal money management. Budgeting helps individuals and families to understand their cash inflows and outflows, giving them an understanding of their current financial situation.
  
  

Debt Management

• Because most people have debt, proper financial education includes understanding consumer debt and how it works. National financial advisers and credit counselors provide advice on reviewing debt amounts, loan terms, and how to effectively pay off loans quickly.
  
  

Financial Advice

• Reviewing information from popular financial advisers, such as Dave Ramsey or Clark Howard, will help educate individuals on proper money management skills. These advisers provide information on budgets, how to live without credit cards, and reveal consumer scams related to debt consolidation companies.
  
  

Credit Counseling

• Credit counseling can aid individuals with large amounts of consumer debt. The LSS Financial Counseling Service and National Foundation for Credit Counseling are two reputable sources for consumer debt information. Reputable debt counselors help people choose which debt management firms can help their needs.