Programs put your finances in order

TRAVERSE CITY -- If you're stressed out about finances at the start of 2009, you're probably not alone.

Mounting job losses, holiday bills and pummeled investment portfolios are sending financial shock waves through households across the nation. Local banks and credit counselors report more people seeking guidance to help them weather the turbulent times.

"We recognize that during these times that a lot of people are uncertain about a lot of things," said Rod Brown, senior vice president and retail executive for Fifth Third Bank in Traverse City. "I think people are trying to get their financial situations stabilized in case things get worse."

Credit counselor Jackie Freeman, of Michigan Debt Settlement of Traverse City and Suttons Bay, said she's seen a surge in client referrals in recent months, much of it related to the state's dour economy.

"Most of my clients are people who have had an unavoidable catastrophe," she said. "Around here, a lot of it is job loss."

Freeman said facing credit problems can be difficult, but the best course of action is to deal with problems sooner, rather than later.

Credit counseling firms can help consumers negotiate lower balances on credit cards, consolidate various bills or bargain for lower interest rates on existing accounts.

Financial institutions are cutting much better deals to settle delinquent accounts, one advantage of the recent financial markets collapse, Freeman said. She's seen cases in which up to 80 percent of credit card balances were waived to close out overdue bills.

"The banks and credit card companies are agreeing to take so much less than they used to," Freeman said. "We're getting some good rates right now."

Another upside to the market downturn for home owners and potential buyers is the recent plunge in mortgage interest rates. Brown said mortgage rates are near a 40-year low and many homeowners can reduce monthly expenses by mortgage refinancing. Homeowners should check their interest rates and consider re-financing if they can save at least 75 basis points on their mortgage, for instance securing a 5.25 percent borrowing rate from a rate of 6 percent, Brown said.

"We have a lot of people looking to refinance their debt right now," Brown said.

And more customers are looking for advice on maintaining their investment portfolios, he said. It's impossible to predict when investment funds will start to rebound, but it's good to re-assess portfolios and adjust for life and market changes.

"It's a nice time to make sure your investments are still consistent with what your goals are, and what your plans are," he said.

Fifth Third recently launched a financial planning center on its Web site that offers advice and resources on a variety of subjects. They range from ways to deal with family stress created by the turbulent economic times to creating a shopping budget, planning for retirement or a child's education, and buying or selling a home.

Loan calculators also are available to help consumers determine how much they can save by refinancing lower interest rates on items like home loans and credit cards.

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Banks and credit counselors say there are plenty of ways to deal with mounting debt and bills. Record-Eagle