FAIRMONT — Getting out of debt isn’t a simple task, and waiting too long to get help could lead to a desperate financial situation.

The Consumer Credit Counseling Service of North Central West Virginia is one department within Criss-Cross, a multi-service agency headquartered in Clarksburg.

Amie Darway, executive director of Criss-Cross, said the Consumer Credit Counseling Service works with individuals who are experiencing difficulties making their monthly payments to credit-card companies. The agency also has housing counselors who help people who are facing foreclosure.

“Most people go into debt as a result of overspending,” she said. “They live off their credit cards to make up for a difference in income they have lost.”

For individuals who have gambling or shopping addictions, credit cards help cover those costs. A lot of consumers just make the minimum payments on their credit cards, and they don’t pay attention to the interest rates, Darway said.

“You should pay twice the dollar amount of what your finance charge is being assessed at,” she said.

Darway recommended that people call earlier rather than later for assistance with debt problems.

If people are seeking help, they need to make sure that the agency is a good, reputable company that won’t steal their money, she said. The Consumer Credit Counseling Service of North Central West Virginia is part of the National Foundation for Credit Counseling.

“Everybody has debt,” Darway said. “It’s how you manage your debt that affects your credit.”

She said people who don’t manage their debt correctly may have trouble getting credit in the future. Their credit issues could also affect their employment and the interest rates they are paying.

When consumers are trying to get out of debt and improve their credit, the Consumer Credit Counseling Service of North Central West Virginia first asks them to track their spending — including every little item — for 30 days. At the end of that time period, the person will total up what they’re actually spending. If they find that they’re spending more than they’re bringing in, then they have a problem, Darway said.

People may have debt questions or concerns but don’t necessarily need the agency’s debt management program. In these cases, the Consumer Credit Counseling Service can provide a third-party person to offer suggestions, she said.

To prevent going into debt in the first place, people need to create a budget so they don’t overspend.

“The best thing is to have a budget plan,” Darway said. “Set up goals. Set up savings.”

She said individuals should strive to have three to six months of income in a savings account in case of an emergency.

“Try to shop with a list, or don’t go shopping with credit cards,” Darway said. “Pay your credit cards off every month. Don’t put anything on a credit card that you can’t pay off in 90 days.”

For young adults who are on their own and handling their finances for the first time, Darway advised that they start out slow with a checking or savings account. They need to build up financial awareness about their responsibilities and make sure they are able to manage the account on their own.

Younger people only really need one credit card, she said. Obtaining several cards from retail stores just opens them up to temptation at a young age.

The primary function of AXA Advisors LLC in Fairmont is financial planning. Brent Wilmoth, retirement planning specialist for AXA Advisors, said the company gathers data on the current assets and expenditures of clients in order to find out what their budget is like.

“The plan always gives us all the information, and that’s typically where we will find their total debt load including consumer debt,” he said. “Through that process is where we will identify what level or what categories of debt they have.”

Nationwide, the country has a short-term spending strategy, which causes many people to go into credit-card debt. If consumers want something, their credit card gives them the means to fill that want. Their card is a method of convenience, Wilmoth said.

He said there are three categories of debt: small, medium and large. It’s common for people to have $1,000 to $2,000 worth of consumer debt. These people are generally responsible and pay off their credit cards.

People benefit from buying appreciating assets — like a home, for example — that have value after the purchase, Wilmoth said. When someone purchases depreciating or consumable assets like a vacation or furniture, there is no net value after the purchase is made.

Lending institutions look at a person’s current debt load, which affects the consumer’s current credit score and the interest rates they get, he said.

Wilmoth said getting out of debt involves focus, sacrifice, discipline and patience. He recommended that people define a reasonable budget, put together and follow a plan, and work with a financial professional. They must also build up personal savings and maybe do without some things until they gain liquidity.

People need to learn to spend within their income level, Wilmoth said.

“We all need to learn to act our wage,” he said.

To avoid future debt problems, people can identity an expenditure and whether they “can assume a reasonable rate of return in a reasonable time period.” If they can’t come up with the payment, they can delay instant gratification and save up so they can buy the want with no debt, Wilmoth said.

People often get into trouble and need outside help because they’re not managing their money correctly, Assistant Attorney General Norman Googel said.

“Especially when you get into big trouble, you have to figure out what debts must I pay and what debts must I let go,” he said.

For consumers whose debts aren’t too far out of control and who have reasonable income, a legitimate credit counseling agency in West Virginia can assess their income and debts and try to create a debt management plan, Googel said.

But if a consumer’s finances are way out of control in relationship to their income, he or she is almost always better off filing for bankruptcy, he said. People should determine whether they will be able to get a complete or substantial discharge of debts and at the same time keep their home and vehicle. Googel encouraged people in this situation to consult a bankruptcy lawyer.

“There’s a tremendous amount of misinformation out there about bankruptcy,” Googel said.

The debt-settlement industry tries to steer consumers away from bankruptcy. Googel advised consumers to avoid companies offering debt settlement or claiming that they can remove debt.

“We urge consumers to not seek help over the Internet,” he said. “They will find trouble.”

The Office of West Virginia Attorney General Darrell McGraw recently reached a settlement agreement with Personal Credit Services of East Islip, N.Y. This online company misled consumers who were seeking loans, took their money, and didn’t provide services.

Googel said consumers who believe they have bad credit may go to the Internet or call a phone number they see on television to get a loan, but they’re usually just left with bigger problems.

“A company can be in the service of helping consumers get loans, but it is a regulated industry and they’re supposed to be licensed and bonded with the state,” he said.

The attorney general’s office and the West Virginia State Bar Association are sponsoring a statewide public service announcement to educate consumers about the dangers of debt-settlement companies.

E-mail Jessica Legge at jlegge@timeswv.com.