BAILOUT - credit card debt - Statistical Data Included

Kiplinger's Personal Finance Magazine, April, 2000 by Kimberly Lankford

Q&A I Helping an adult child

who's DROWNING IN DEBT.

My daughter is way over her limit on two credit cards. Do you think I should pay them off for her? Will the credit card companies compromise by letting us pay just 60% of the total bill or something? --NAME WITHHELD

Gerri Detweiler, co-author of Slash Your Debt: Save Money and Secure Your Future (Financial Literacy Center, $10.95) recommends a tough-love strategy: Have your daughter get debt counseling and work out a payment plan herself. "If she doesn't do it now, she will never learn how to manage her money," Detweiler says.

Debt Counselors of America (800-680-3328, www.dca.org) will act as a mediator and is often successful in negotiating with creditors to lower monthly payments, interest rates and late fees. The debtor then sends a check each month to DCA's One-Pay program, which distributes the money to creditors. The service is free, but DCA asks for voluntary contributions.

The National Foundation for Consumer Credit (800-388-2227, www .nfcc.org) offers a similar plan and can refer your daughter to one of its 1,450 agencies for counseling. (The cost is usually $50 or less and may be free.)

If your daughter goes it alone, she may be able to get her creditors to stretch the payments or cut some finance charges. But it's unlikely that they'll slash the total bill.

Top-Yielding Money-Market Mutual Funds

                         RECENT
                         30-DAY    MIN.     WEB ADDRESS
Taxable                  YIELD    INVEST.   (WWW.)

1. Strong Investors(*)   5.91%     $1,000   estrong.com
2. Marshall(*)           5.66       1,000   marshallfunds.com
3. Aon(*)                5.65      10,000   aon.com
4. TIAA-CREF(*)          5.64         250   tiaa-cref.org
5. Aetna/Class A(*)      5.62       1,000   aetnafinancial.com

   NATL AVERAGE          5.13%

                         TOLL-FREE
Taxable                  NUMBER

1. Strong Investors(*)   800-368-3863
2. Marshall(*)           800-236-3863
3. Aon(*)                800-266-3637
4. TIAA-CREF(*)          800-223-1200
5. Aetna/Class A(*)      800-367-7732

                                      TAX. EQ.
                             RECENT     YIELD
                             30-DAY    28%/31%     MIN.
Tax-free                     YIELD     BRACKET    INVEST.

1. Strong                    3.60%    5.0%/5.2%    $2,500
2. Vanguard                  3.31     4.6/4.8       3,000
3. Calvert Tax-Free          3.29     4.6/4.8       2,000
4. Zurich                    3.27     4.5/4.7       1,000
5. Eaton Vance Tax-Free(*)   3.23     4.5/4.7       1,000
   NATL AVERAGE              2.82%    3.9%/4.1%

                             WEB ADDRESS        TOLL-FREE
Tax-free                     (WWW.)             NUMBER

1. Strong                    estrong.com        800-368-3863
2. Vanguard                  vanguard.com       800-662-7447
3. Calvert Tax-Free          calvertgroup.com   800-368-2748
4. Zurich                    zurichfunds.com    888-523-4140
5. Eaton Vance Tax-Free(*)   eatonvance.com     800-225-6265

(*) Fund is waiving all or a portion of its expenses.

SOURCE: IBC's Money Fund Report, IBC Financial Data Inc., 290 Eliot St., Box 9104, Ashland, MA 01721; 800-343-5413; www.ibcdata.com

Top-Yielding Certificates of Deposit

                                     RECENT
                                      ANN.     MIN.
6-month                              YIELD    AMOUNT

1. USAccess Bank (Ky.)([dagger])     6.55%       $500
2. M&T Bank (N.Y.)                   6.41       5,000
3. Arkansas National (Ark.)          6.40      10,000
4. Net. Bank (Ga.)([dagger])         6.40       1,000
5. Bank Caroline (S.C.)([dagger])    6.40         500

   NATL AVERAGE                      4.72%

1-year

1. USAccess Bank (KY.)([dagger])     7.01%       $500
2. Providian National (N.H.)         6.79      10,000
3. Savingsbot.com (Nev.)([dagger])   6.78      10,000
4. M&T Bank (N.Y.)                   6.76       5,000
5. BankDirect (Tex.)([dagger])       6.75       2,000

   NATL AVERAGE                      5.08%

5-year

1. Capital One (Va.)                 7.65%    $10,000
2. Providian National (N.H.)         7.63      10,000
3. Key Bank (N.Y.)                   7.57       5,000
4. M&T Bank (N.Y.)                   7.51       5,000
5. Savingsbot.com (Nev.)([dagger])   7.51      10,000

   NATL AVERAGE                      5.63%

                                     WEB ADDRESS
6-month                              (WWW.)

1. USAccess Bank (Ky.)([dagger])     usaccessbank.com
2. M&T Bank (N.Y.)                   (#)
3. Arkansas National (Ark.)          arknatl.com
4. Net. Bank (Ga.)([dagger])         netbank.com
5. Bank Caroline (S.C.)([dagger])    bankcaroline.com

1-year

1. USAccess Bank (KY.)([dagger])     usaccessbank.com
2. Providian National (N.H.)         providian.com
3. Savingsbot.com (Nev.)([dagger])   savingsbot.com
4. M&T Bank (N.Y.)                   (#)
5. BankDirect (Tex.)([dagger])       bankdirect.com

5-year

1. Capital One (Va.)                 capitalone.com
2. Providian National (N.H.)         providian.com
3. Key Bank (N.Y.)                   (#)
4. M&T Bank (N.Y.)                   (#)
5. Savingsbot.com (Nev.)([dagger])   savingsbot.com

                                     TOLL-FREE
6-month                              NUMBER

1. USAccess Bank (Ky.)([dagger])     877-369-2265
2. M&T Bank (N.Y.)                   800-528-6532
3. Arkansas National (Ark.)          888-226-5262
4. Net. Bank (Ga.)([dagger])         888-256-6932
5. Bank Caroline (S.C.)([dagger])    877-692-2765

1-year

1. USAccess Bank (KY.)([dagger])     877-369-2265
2. Providian National (N.H.)         800-414-9692
3. Savingsbot.com (Nev.)([dagger])   877-833-4248
4. M&T Bank (N.Y.)                   800-528-6532
5. BankDirect (Tex.)([dagger])       877-839-2737

5-year

1. Capital One (Va.)                 800-564-7426
2. Providian National (N.H.)         800-414-9692
3. Key Bank (N.Y.)                   877-872-5553
4. M&T Bank (N.Y.)                   800-528-6532
5. Savingsbot.com (Nev.)([dagger])   800-833-4248