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This
edition of Footsteps Along the Path was initially issued by Clear
Path Financial Education Services which has now become Kuehn
Financial Education Services LLC. For more information about
Kuehn Financial Education Services LLC, please email 
or visit www.kuehnservices.com.
Clear
Path Credit Consultants believes:
If you build on your own skills,
Rely on your own abilities,
Increase your range of knowledge,
And get help when you need it,
You are the investment that will succeed above all others.
Welcome to the tenth edition of Clear Path Credit Consultants' Footsteps
Along the Path. The goal of this newsletter is to provide relevant
and succinct information on financial management to consumers and
small business owners. It is designed to build upon previous issues,
developing a clear path to financial freedom. Reader feedback is encouraged.
Please feel free to forward Footsteps Along the Path. If you have
received this from a friend or colleague, and wish to be added to
the newsletter distribution list, simply provide a response E-mail
with this request. The same applies if you do not desire further contact,
your name will immediately be deleted from the list. 
In this issue:
*Article: Comment on "State's Bankruptcy Up 7.4%"
* A Knowledgeable Consumer is Powerful: A compilation of news, views
& reviews
* Seminars Worth Your Time
* Topic for the next issue of Footsteps Along the Path
Clear Path Credit Consultants in the Media
Clear Path has been blessed with much publicity as it welcomes 2004.
Beyond participating in The Arizona Republic's financial advice event,
Money Line, Debi Kuehn has been interviewed on foreclosure and bankruptcy
topics. Kuehn provides information to make the reader a knowledgeable
consumer, which is powerful. The following links will take you to
the articles published in The Arizona Republic.
January 4, 2004: Financial Pros Take Your Calls Tuesday
http://www.azcentral.com/business/articles/0104finance04.html
January 6 2004: Got Questions About Personal Finances
http://www.azcentral.com/business/articles/0106Financialseminar06.html
January 7 2004: Money Minute: Don't Lose Home When Crisis Occurs
http://www.azcentral.com/business/columns/articles/0107moneyminute07-ON.html
January 13 2004: State's Bankruptcy Up 7.4%
http://www.azcentral.com/arizonarepublic/business/articles/0113bankruptcy13.html
Small Business Notes for January 19, 2004 (no on-line link available)
Business bankruptcies are down 2.3 percent.
"But Debi Kuehn, owner of Clear Path Credit Consultants, points
out that doesn't give an accurate picture of business bankruptcies.
'Personal bankruptcy numbers can be over inflated by business owners
going the road of personal bankruptcy.' "
Comment on "State's Bankruptcy up 7.4%"
The reasons for bankruptcy go beyond consumer spending and debt.
Clear Path Credit Consultants, owner Debi Kuehn was interviewed
for Yvette Armendariz's 1/13/04 article in The Arizona Republic,
"State's bankruptcy up 7.4%". However, excluded from the
article was Kuehn's insights on bankruptcies caused by the after
math of divorce, illness, unemployment, and failed business start
ups.
Record breaking bankruptcy statistics reflect our *consumption economy
and the result of people simply running out of money. Yes, some
people live beyond their incomes and faced with the slightest extra
expense, bankruptcy is viewed as a solution. But, for many the reason
to file is a combination of factors. Even wise people with an emergency
fund may not be able to weather a year long bout with unemployment.
Also, consider a divorced mother who is not receiving the court
ordered child support and faces increasing housing costs. Ponder
the situation of a business owner maxing personal credit limits
only to confront a failed start up. Finally, imagine a senior citizen
living off of social security with savings wiped out to pay for
medical bills and ultimately the funeral of her spouse.
To avoid bankruptcy or debt accumulation always monitor your cash
flow. A household needs to know it's after tax income as a source
of cash inflow and all expenses as a source of cash out flow. If
the cash flow is negative, a lifestyle change needs to occur. Examples
are downsizing a home and selling a car or taking a part time job.
With an ongoing negative cash flow debt will mount in an attempt
to cover expenses. This debt of course adds to the bottom line of
expenses thus creating an ever widening gap between the amount needed
to balance cash inflow and outflow!
Most individuals live at their level of income. If a person makes
$60,000 a year s/he spends every dollar. But to avoid bankruptcy
please consider your real take home pay. This will indicate your
purchasing ability. For instance:
Salary
= $60,000
Taxes = ($18,000)
Commuting Expense = ($2,300)
Professional Clothes = ($2000)
Day care for two children = ($11,000)
_________________________________
Net Pay = $26,700
What a difference! Of course, all utilities, debts and insurance
payments must then be subtracted to arrive at your monthly household
cash flow.
In addition to basing financial decisions on your cash flow, consider
debt to income ratio, net worth and future goals. Invest your time
to learn about personal finances. The ROI is phenomenal. Knowing
that you are building a better future will make you happier today.
Oliver Wendell Holmes stated, "We need education in the obvious
more than investigation of the obscure." Whether contemplating
bankruptcy or planning long term goals, the aforementioned information
will aid both.
* = Issue IV discusses living in a consumption economy, which is
based on intangible services and the need to spend in order to keep
the U.S. financial system growing. This is contrary to the historic
manufacturing and trade economy; where a durable product is made
and other nations utilize their funds to increase our country's
wealth.
A Knowledgeable Consumer is Powerful
Pay Rent Build Credit (PRBC) is a new and innovative credit reporting
agency with a goal to track payments, such as rent, utilities and
insurance which the three other major credit bureaus Experian, Equifax,
and Trans Union do not. Within the next five years PRBC hopes to create
10 million electronic files on predominately young or high risk consumers,
minorities and recent immigrants.
How PRBC strategically plans on accomplishing this is the innovative
part. The consumer visits PRBC's website to input his/her payment
history. Next, proof of this payment is verified by a "PRBC enrollment
partner". Also, this credit reporting agency promotes a network
of banks, landlords, credit card and utility companies that already
report to it. Therefore, someone looking to build credit history this
way need only do business with these organizations.
PRBC's approach is a departure from the typical flow of information,
in which the creditor reports the individual's payment status to the
credit bureaus. The major credit bureaus are required to state the
given information accurately under the Fair Credit Reporting Act.
However, these organizations do not verify the validity of data or
assist the consumer in creating a credit score. Furthermore, the traditional
credit bureaus do not publicly list which creditors convey data to
them.
Building credit-worthiness around factors ignored by other credit
reporting agencies is advantageous for large portions of the population.
However, Clear Path Credit Consultants has concerns. For example,
lenders may target PRBC customers with predatory offers. As mentioned
these consumers may be novices to financial offers or trying to rebuild
a damaged credit score. It may also lasso folks into using the PRBC
network of businesses. Someone may be willing to pay a higher price
for rent simply to have payments register with PRBC. Finally, it has
yet to be determined whether accuracy of information can be maintained
with the consumer inputting the initial credit history. It seems like
an easy and cost effective solution for PRBC to have consumers do
the work for it. Yet, information electronically reported and "down
loaded" is littered with errors. When the manual aspect is exercised,
more blunders can happen.
For more information, please visit www.payrentbuildcredit.com.
If you have a current relationship with PRBC, Clear Path Credit Consultants
requests hearing about the experience. Please contact Debi Kuehn at
623-580-9293.
Note: Clear Path Credit Consultants always advises to inquire if a
particular creditor is reporting to the credit bureaus in order to
create or re-establish a good credit score. A creditor can report
to one or all three bureaus. Therefore each credit report will contain
different information. The end result of a great credit score is to
be approved for major purchases and receive low interest rates.
Seminars Worth Your Time
"Path to a Financially Thriving Business" presented by Clear
Path Credit Consultants
March 25, 2004
7:00 p.m.
Glendale Public Library (59th & Brown Street, Glendale AZ)
RSVP Kathy Hamel, Glendale Business Librarian, at 623-930-3552
"Are you master of your own destiny with visions of business
prosperity, but financially struggling? Do you find it difficult to
meet your personal expenses while expanding your business? Do you
cringe at developing concrete financial goals with a strategy to reach
them? Is debt draining your current cash flow? Do you know the exact
service rate that will make your company profitable? Join Debi Kuehn
MBA, owner of Clear Path Credit Consultants, for an interactive workshop
which explores how revenue, profit, net income, cash flow and credit
intermingle to create the reality of a money making company. Learn
what you need to consider before growing your business to the next
level. This bottom line approach to financial information will increase
your bottom line! The workshop is excellent for start-ups, businesses
on the edge of expansion and those strained monetarily."
Upcoming in Footsteps Along the Path
Adios Fair Credit Reporting Act and Ola to Fair and Accurate Credit
Transaction Act (FACT). On December 4, 2003 Congress in response to
massive credit industry lobbists passed FACT. What does this mean
to you? The pros and cons will be presented in this follow up article
from issue VI.
Deborah A. Kuehn is the owner of Clear Path Credit Consultants,
a financial management education service. Clear Path Credit Consultants
teaches people to reach their financial goals and create a solvent
and credit worthy lifestyle.
"Clear
Path Credit Consultants: Helping you sleep better at night."
PH: 623-580-9293
Written by Deborah A. Kuehn, MBA
All rights reserved
Clear Path Credit Consultants is a registered trade name
Issue X
January 23, 2004
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