By ROBIN SHANNON

Staff Reporter

LAPLACE – The tough economic times plaguing the nation have many people on edge as they wonder what will become of their financial future. Mounting bills and dwindling 401(k)s can easily ratchet up the stress level of the average person, but there are simple ways to alleviate the pressure.

The LaPlace offices of the River Region Chamber of Commerce recently held an informal lunch seminar for local business leaders that demonstrated the five steps to relieving financial stress. Representatives from Louisiana Federal Credit Union conducted the half-hour long presentation, part of the Chamber’s “Lunch and Learn” series.

“We are here to show you that keeping control of your finances can be done by just about anyone,” said credit union representative Kim Bourgeois. “There is no truth to the myth that wealthy people budget better because the more we make, the more we spend.”

Bourgeois said the hardest step is the first step – facing the problem head on.

“Debt is a common stress,” said Bourgeois. “Write it out and address the problem to figure out ways to fix it.”

Bourgeois said step two, fixing the problem, begins with developing a spending strategy and creating a budget. She said many people don’t realize what they are spending until it is all added up and written out.

“Say you spend $.65 a day on a soft drink,” said Bourgeois. “That can add up to over $237 a year. Now figure that the average lunch can cost $4 a day. That becomes $1,400 a year.”

Step three deals with reducing the debt already accumulated. Bourgeois advised consumers should seek out their credit report and get an idea of what kind of credit they have then look into the possibility of consolidating numerous credit cards into one loan at a lower interest rate.

Bourgeois said the average credit card balance is $7,000, and the average interest rate is 19 percent.

“The average balance would take 25 years to pay off if you are only making the monthly payment,” said Bourgeois.

Step four of the process involves sticking to the budget plan and identifying potential “spending leaks.” Bourgeois recommended writing out shopping lists and separating purchases by “wants” and “needs.” She also said it is sometimes better to make purchases with cash instead of cards because then the consumer realizes how much is actually being spent when it is spent.

“Budgeting is not that easy,” said Bourgeois. “We all have urges to buy things we want when we see it, but when you stick to a list you avoid impulse buys.”

The final step in the process is getting help. Bourgeois said bank and credit union employees will always advise customers on spending habits and how to correct them.

“Most people know this stuff but choose to ignore it,” said Bourgeois. “Holding onto financial stress can inhibit your health and ruin your credit rating.”

When seeking help, Bourgeois said consumers should be wary of organizations that charge fees for advice that can be had for free.