CLIPBOARD : GET YOURSELF OUT OF A CREDIT MESS

There’s good news and there’s bad news.

Total personal income last year in Orange County was nearly $58 million. Because of the concentrated affluence in the county, residents are constantly bombarded with unsolicited pre-approved applications for credit cards. That’s the good news.

The bad news is that more and more residents are taking financial institutions and retailers up on their offers of easy credit. And more and more residents are finding themselves on shaky credit ground as a result of credit card abuse and too-convenient cash advances.

“The average consumer in Orange County who comes to us has 11 unsecured creditors and is in debt $17,000 to $18,000,” said Carl F. Lindquist, founder and retiring president of Consumer Credit Counselors of Orange County. He has had clients surrender as many as 25 credit cards.

“Part of the problem is that people are using cash advances on their credit cards to supplement their income, but then they are only able to make the minimum payments,” added Jim Frannea, who will take over as president of the 25-year-old company when Lindquist retires April 1.

If you think your financial picture is beginning to show more bad news than good, here’s a simple test that may either substantiate or alleviate your concerns:

* Is an increasing percentage of your income going to pay off debts?

* Are you near or at the limit on your lines of credit?

* Are you paying bills in 60 or 90 days when you used to pay them in 30?

* Are you only able to make the minimum payments on your revolving charge accounts?

* Are you paying bills with money earmarked for something else?

* Are you borrowing money to pay for items you used to buy with cash?

* Are you chronically late in paying your bills?

* Is your savings cushion inadequate or non-existent?

* Do you take out a new loan before you pay off an old one, or do you take out a new loan to pay off an old one?

* Do you put off medical or dental visits because you can’t afford them right now?

* Are you threatened with repossession of your car or credit cards, or with other legal action?

* Are you working overtime or have you taken a second job just to make ends meet?

* If you lost your job, would you be in immediate financial difficulty?

* Are you unsure about how much you owe?

* Do you worry a lot about money?

If you’ve answered yes to four or more of these questions, you may not necessarily be in trouble, but it may be time to take stock of your credit situation before it gets out of control.

Consumer Credit Counselors of Orange County is the only nonprofit service of its kind in the county and does not charge a fee for its counseling. It is financed primarily by community organizations, retailers, banks and financial companies who would prefer delinquent customers make arrangements to pay back their debts rather than default or declare bankruptcy.

“People generally fall into three categories,” Lindquist said. “The first are so far in debt, we can’t help them. The second are people who make enough to take care of their obligations, but just don’t budget properly. So we go over their financial picture and help them design a budget they can follow.”

It is the last category that makes up the bulk of the agency’s business: people whose income can’t quite cover the bills for which they’ve contracted. In those cases, the agency will calculate how much money you have left over each month after secured obligations are paid--automobile, insurance, rent/mortgage--and if the figure is workable, the agency will contact your charge creditors and set up a reduced payment plan. The simple process begins with an inquiry:

* An application is provided and a counseling appointment set.

* The completed application, bills and credit cards are brought to the appointment.

* If qualified, a start date for the repayment plan is arranged, and all credit cards are surrendered.

* Creditors are contacted by mail to verify balances and account numbers; the surrendered credit cards are also mailed back along with a letter confirming the start date for the new payment plan, which is contingent on the company’s approval.

* Payments in the form of a money order in the amount agreed upon are brought each month to the agency so it can pay bills directly. No cash or personal checks are accepted.

For more information, write Consumer Credit Counselors of Orange County at 1616 E. 4th St., Suite 130, Santa Ana, Calif. 92701, or call (714) 547-8281. Office hours are 9 a.m. to 5 p.m., Monday through Friday.

TRAFFIC AT CONSUMER CREDIT COUNSELING SERVICE

Consumer Credit Counselors of Orange County, the only nonprofit agency in the area that will assist consumers in getting control of credit problems, has been able to help more than half the families who have sought assistance during the last five years.

Families Couldn’t Self- CCC Percentage Money Year Counseled Help Budgets Budgets Helped Returned 1990 3,308 1,584 445 1,279 52 $4,281,879 1989 2,539 1,096 365 1,078 57 3,496,442 1988 2,273 1,008 345 920 56 3,413,265 1987 2,230 996 378 856 55 3,103,246 1986 2,060 903 218 939 56 2,309,352

Source: Consumer Credit Counselors of Orange County, the Chapman College Economic & Business Review