According to some experts, some 70 percent of all adult working Americans have no money left after paying their basic expenses and bills each month. "Many are out of kilter, financially speaking, and they don't even know it," said Paul Richard, RFC, executive director for the nonprofit Institute of Consumer Financial Education (ICFE), a San Diego based group helping consumers become better spenders, regular savers and wise users of credit.

"How do you tell if you are financially out of kilter, or in danger of being there? There is a simple formula that most retail lenders rely on to determine if a loan applicant has too much debt and out of kilter," explained, Richard. The formula is: monthly take home pay, less housing expense (rent or first mortgage) equals X multiplied by 20 percent equals the total amount of money you should be paying towards loans, credit cards or other debts.

EXAMPLE Monthly take home pay is $2400. Less housing expense: $800 a-month, equals $1600 multiplied by 20 percent equals $320 maximum amount to be paid on car or other loans including charge cards. "Consumers who apply the formula to their own finances and find they have too much going towards charge cards and loans have limited choices to in order to alter their course. They need to increase income or reduce outgo, if possible, by refinancing, and sometimes, by a consolidation loan," Richard said, adding, "The next focus is spending, because that's the key to debt reduction and, eventually, savings and investing for the future."

Take Home Pay: $2400
Less Housing (-800)
Balance $1600
x 20%= $ 320 available for credit payments.

"The ICFE has a wide variety of aid for consumers, especially those who find themselves out of kilter," said Richard, whose group has helped thousands of people through its Web site at: http://www.icfe.info.

For information about "Mending Spending," monthly budgeting guidelines, and warning labels for your charge cards, visit the ICFE's Web page at: http://www.icfe.info.

The site also includes helpful sections on increasing savings, using credit wisely, plus "How to set up and implement a spending-plan" (with a one page work sheet) for personal and/or family finances. To receive the same information by mail, please send $1 and a self-addressed, 60 cent stamped envelope to:

ICFE Money Helps
PO Box 34070
San Diego, CA 92163-4070