Poor mortgage choices, bad credit management, a lack of financial literacy and weak savings habits are among some of the underlying themes in the distressed housing market.

Hard-sell come-ons, predatory lending, fraud, scams and market practices that created over-inflated home prices are responsible, in part, for rising foreclosures, reduced equity growth and a general malaise in the housing market, but consumers without a clue also get some of the blame.

And the National Foundation for Credit Counseling (NFCC) says let that be a lesson to you.

"We have a 'teachable moment' before us," said Susan C. Keating, NFCC president and CEO.

"More American consumers are in need of financial education than ever before. More expansive and creative financial products have been a blessing to many, but have created real problems and barriers for others," she added.

A recent NFCC survey, conducted by Princeton Survey Research Associates International, reaffirms the need for financial and credit education and information, particularly among young adults and some ethnic groups.

The survey reveals consumers universally ignore the fundamentals of sound financial management, such as budgeting and tracking expenses, ordering free credit reports, and managing credit card debt.

Consumers who know they need help and want it often don't know where to find it.

When Princeton telephone-interviewed 1,003 consumers nationwide from March 20 and March 28, 2007, it discovered:

• Only a minority (39 percent) keep close track of expenses, and this does not vary by gender, age or income.

  You don't know where your money goes if you don't track expenditures. If you know where your money goes you are more likely to be able to stop unnecessary spending and save more.

• Less than half of Americans have ordered their credit report -- despite the fact that it is free (actually, you are entitled to three credit reports -- one from each of the three big credit reporting agencies every year).

  Getting a look at your free credit report, before you apply for credit should be a no-brainer. If there are errors or black marks that affect your application or how much money you can borrow, you won't know until it's too late if you don't have a recent copy of your credit report.

  Obtaining your credit report gives you time to correct errors or improve your credit standing before you apply for credit. It will also let you know if someone has commandeered your identity and is using it to steal credit.

• Nearly four in 10 Americans (38 percent) do not pay their credit cards in full each month. Given the high cost of credit card interest, that could set the stage for prolonged indebtedness, severe financial strain, even financial disaster.

• Two-thirds of Americans say they learned a great deal or fair amount about financial issues, such as managing money, balancing a checkbook and building their savings, at home versus in school.

  Financial counseling professionals say family members can be sources of good advice and smart practices, but not always. They may not be fully aware of changing economic or market conditions that could affect financial behavior and your need to make adjustments in your financial habits.

  A Harris Poll revealed older consumers would be more aggressive about their financial habits if they had to do it over again.

• Younger consumers, African-Americans and Hispanic consumers are most interested in financial education and advice.

• One-third of all respondents do not know where to turn for financial advice. Your current lender or creditor is a good start before you are late on a payment, but agencies like NFCC, NeighborWorks, the Association of Community Organizations for Reform Now (ACORN) and the U. S. Department of Housing and Urban Development, among others, whose only goal is to school you in financial literacy, rather than extend you more credit.

Published: April 24, 2007

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.