There's no question the economy has seen better days.

The markets are unstable, inflation is up, and debt all over the country is on the rise—even here in Eau Claire.

Credit counselors say it's affecting everybody, even the people you'd never expect debt to hit.

"I have helped people all the way from people on disability income and on lower wages, all the way up to doctors, lawyers, architects and business owners," says credit counselor Wayne Jennings.

Most of this debt comes from credit cards. As inflation jacks up prices, people are spending more on the things they need everyday and relying on credit more to cover the extra cost.

"People sometimes don't have enough free income, or discretionary income, to account for these increases," says Jennings.

That use of credit builds up unsecured debt, which, unlike mortgages or car payments, doesn't have anything for the creditor to repossess, like a car or house.

"It's a huge slippery slope. Very huge," says Jennings.

He warns against debt settlement companies often seen on TV commercials.

"It wreaks havoc on credit scores," he says.

Those companies get their fees upfront. So even if their consolidation doesn’t work, and you’re still in debt, they’ll get your money.

The safer route: Go through a debt management program. Once you've found one, there are three main steps.

Step one: Look at your budget—how much you make and how much you spend.

"About 1/3 of our clients we see on average walk away and are able to manage just fine after simple budgeting techniques," says Jennings.

Step two: Find ways to cut back.

"Do you need premium movie channels? Do you need all the services on their cell phone?" Jennings points out as spending areas to reassess.

Step three: Look for ways to pay it off. But, Jennings says, it's not always easy.

"If people are using credit to supplement heir lifestyle, then yeah, that has to change."

Bottom line, Jennings says bankruptcy is avoidable, as long as you don't get too deep.

"Don't wait 6 months down the road. Don't wait until you hear from collection agencies. Contact someone if you're having trouble making payments."

Jennings says a lot of people do wait too long because they're embarrassed to get help with their money problems, but he says there's no shame in asking if you're facing trouble.

If you're in debt and looking for help, visit the following links for more information.

Family Means Consumer Credit Counseling Service
www.familymeans.org

Consumer Literacy Consortium: 66 Ways to Save Money
www.66ways.org

National Federation of Credit Counselors
www.NFCC.org