NEWS RELEASE

Media Contact:
Renee Beauregard 303-400-3456
Ken Scott 713-682-1382, pager 1(800) 901-4418

Consumers United Association Promotes
National Consumer Protection Week, February 1-7

DENVER, CO - January 22, 2004 - Personal bankruptcies in Colorado rose nearly 40 percent in ten years from 14,936 in 1992 to 20,769 in 2002. In addition, bankruptcies increased at a higher percentage rate (24.3%) in Colorado from 2002 to 2003 than any other state in the nation. To help consumers avoid bankruptcy and improve their financial lives, Consumers United Association (CUA) has joined with other federal, state and local agencies to promote National Consumer Protection Week (NCPW) February 1-7. The theme of this year's NCPW is "Financial Literacy: Earning a Lifetime of Dividends."

"CUA encourages consumers to evaluate their current financial situation and commit to learning more to increase their personal financial literacy, said Renee Beauregard, Executive Director of CUA. "Consumers make financial decisions everyday from shopping for a mortgage to whether or not to pay bills online. Those who are educated in financial matters are more likely to make the right ones and avoid the financial problems that can lead to bankruptcy. "

CUA offers the following tips for consumers wanting to learn more to improve their financial lives:

Banking

• Shop around for a financial institution that meets your personal needs for checking and savings accounts. Banks and credit unions offer many different options in account features. Compare features, fees and other considerations before opening an account.
• Keep track of your balances and do not bounce checks. Once you are entered into the check system as someone who writes bad checks, it is difficult to clear your name.
• Make savings a financial priority. The simplest way to avoid financial problems is to save three to six months of living expenses in a savings account for emergency expenditures.

Loans

• Understand all terms of the loan when borrowing money. Do not allow yourself to be rushed into a decision and never sign anything until all of your questions have been answered to your satisfaction. Walk away if you do not understand something or if you are feeling pressured.
• Remember that life is uncertain and things happen. Try not to over borrow. Just because you qualify for a mortgage or car loan does not mean you should buy the house or car. Determine for yourself what payment amount fits your particular financial situation. Once you've made this determination, obtain pre-approval for a loan that fits your budget and then go shopping.
• Take advantage of bargaining power. There are many types of buying services available to assist you with a purchase. These services are available through your credit union, AAA and others.
• If you are experiencing credit problems, try to defer any large purchases until you have improved your credit score. You will pay higher rates for virtually everything and may even be a target for predatory lending practices, such as hidden costs, points and fees

Credit Cards

• Carefully analyze credit offers such as balance transfers. Many transfers carry fees. While transferring balances can sometimes save money, especially if you pay off the balance in the allotted time, continuously transferring balances may cost you money in the long run.
• Understand your credit card agreement. If you utilize options such as cash advances or reduced rate checks, payments you make toward your credit card will always be applied to the lowest interest balance first, not the highest.

Insurance

• You want to strive for the right amount of insurance coverage for your home, car, health and life. Review your insurance policies and make certain the amount of coverage you carry is right for your current needs. Carrying more insurance than you need is spending money unnecessarily and less coverage than you need could result in a major expense.
• Know that you can save money on monthly insurance payments by increasing your deductible. Be aware, however, that you will have to come up with the extra amount if the insurance is needed.
  

Consumers United Association (CUA) is a nonprofit consumer advocacy association serving consumers in Colorado. Our mission is to improve the financial lives of consumers by providing financial education and advocacy. CUA offers services and resources to aid consumers in the resolution of consumer problems and provides a united voice for consumers in the legislative arena. For more information visit www.cuacolorado.org.