Myvesta News Release

ROCKVILLE, Md. — As more people are building savings and paying down debt, the rift between savers and spenders is widening. "We are seeing more people taking charge of their finances and working to pay down debt," said Steve Rhode, president of Myvesta, the nation's only financial health center. "But for people who are struggling with debt, credit card balances just keep getting higher." Myvesta has one client whose credit card debt totals more that $1 million on 78 cards.

Myvesta's average clients' credit card debt increased 170 percent from $17,800 in 2000 to $48,195 in 2001, and Rhode doesn't see the trend stopping. "I wouldn't be surprised to see the credit card debt reach $100,000 this year," Rhode said. "Many people are financing lifestyles they truly cannot afford using their credit cards. When charging becomes the norm and a necessity to continue living a certain lifestyle, it's only a matter of time before a person's finances reach the breaking point."

Determining if credit card debt is too much depends on each person's unique financial situation. Rhode gave these warning signs to watch for:

• Taking cash advances from one card to pay another;
• Using credit as a tool to improve your self esteem or keep up your appearance;
• Being able to make only the minimum payment on your cards;
• Losing sleep or constant worrying about your debt; and
• Using credit to pay for everyday necessities like groceries or utility bills.

"People who use credit to make purchases they cannot afford are trying to fill a void in their everyday lives. Money problems are never about the money. Until the underlying issues of why a person spends are uncovered, their money troubles will continue," Rhode added.

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Myvesta^SM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.