Consumer Credit Counselors Face Busy Agenda

Consumer Credit Counseling of the Inland Northwest helped 2,614 consumers with budgeting advice in 1996, a 16 percent increase over the number assisted in 1995.

President Mark Harnishfeger said repayment plans prepared with agency assistance returned $3.3 million to the community, 24 percent more than in 1995.

Representatives also made 386 financial education presentations to area schools, businesses and other groups.

The agency opened a satellite office in Sandpoint, and plans to open another in Colville this spring, Harnishfeger said. There are offices in Spokane and Coeur d’Alene as well.

With more than 1 million Americans filing bankruptcy in 1996, Harnishfeger said, consumers are increasingly aware they must use credit widely.

“They are realizing the importance of repaying credit debt and establishing a solid money management plan for the future,” he said.

To make an appointment with a counselor, call 327-3777 or 1-800-892-6854.

AARP has tips on lump-sum payments

Are you eligible to get a lump-sum distribution from your retirement plan?

The AARP Investment Program from Scudder has a 37-page guide that may help.

It offers tips about taxes, investment options, rollovers to Individual Retirement Accounts, and also lists resources for more information.

For your free copy, call 1-800-322-2282, ext. 8721, from 8 a.m. to 8 p.m. Eastern Time business days.

You don’t have to be a member of the American Association of Retired Persons to get a copy, and your request won’t result in any follow-up calls or mailings, said spokeswoman Karen Igler.

The investment program is sponsored by the AARP and is managed by the Scudder group of noload mutual funds.

Debt-relief kit offered

The Debt Relief Institute in Washington, D.C., a public-interest group, is offering a Debt Relief Kit to help prepare a personal debt reduction plan and combine bills into one monthly payment. The kit is intended to be used as an alternative to bankruptcy. For a kit, send $3 to the institute at 611 Pennsylvania Ave. SE, Suite 1010, Washington, D.C. 20003. Lots of other consumer information on everything from free and low-cost prescription drugs and dental care to privacy issues is also available on the group’s Web site at www.institutedc.org/.

Booklet explains fund costs

A 29-page booklet that helps explain taxes and mutual funds is available from American Century Investments in Kansas City. The kit answers common questions such as “What is cost basis?” and “What are the tax consequences of a mutual fund distribution?” For a free copy call (800) 345-2021. Also, Vanguard’s 1996 Tax Center provides information about a broad-range of mutual fund-related tax issues. Check the site at www.vanguard.com/.

Regulatory links spotlighted

A new Web site, created by The Heritage Foundation in Washington, D.C., provides information about issues, experts, studies and statistics related to regulation. Although the site has a conservative slant, there are some useful nonpartisan links to Congressional committees that cover regulatory issues, and to “The Federal Register,” the daily announcement of all proposed and final regulatory actions. Check the site at www.regulation.org/.

Insurer health measured

An insurance company’s financial health can be vitally important to consumers. For example, it’s often time-consuming and expensive to replace a policy lost because the insurance carrier has failed or been seized by regulators.

That’s doubly true for “cash-value” life insurance, where the policy acts in part like a savings or investment account. In that case, a failure can cost policyholders part or all of their built-up savings, or simply can tie policyholders up for years in regulatory red tape.

There’s no foolproof way to avoid unhealthy insurance companies, but there are several agencies that rate carriers for financial strength. A.M. Best Co., Moody’s Investors Service, Standard & Poor’s Corp., Duff & Phelps, and Weiss Research all publish their findings on major insurance companies.

The Insurance Forum, an Indiana newsletter, annually compiles ratings from all the agencies except A.M. Best. Consumers can get the latest ratings on 1,500 life-and health-insurance companies by sending a $15 check to the Insurance Forum, Box 245, Ellettsville, Ind., 47429. Ask for the December 1996 special ratings issue.

To get the A.M. Best Co.’s ratings, call the company’s Bestline service and follow the automated directions. Call 800-424-2378 and use a major credit card (there will be no charge until you give your credit-card number), or call 900-555-2378 and have the charges billed to your telephone. The basic charge is $2.95 for using Bestline. In addition, a simple rating costs $4.95, and complete reports cost $15.

, DataTimes