Crisis forcing debt-saddled Americans to budget

By Nick Carey

WAUKEGAN, Illinois (Reuters) - The bleak outlook for the U.S. economy and the worst credit crunch in decades are pushing many stressed-out consumers to learn some new skills -- budgeting and saving.

The trend was on display at a free seminar called "Building a Better Budget" in this working class suburb north of Chicago on Wednesday night. An overflow crowd of 180 people showed up to hear advice of how to make ends meet in tough times.

"I know for many of us saving is a foreign concept," Lizbeth Sanchez, a manager at financial counseling service Balance told the crowd.

"It's not easy to save because the way our culture works, the person who dies with the most stuff wins, right?"

Almost no one cracked a smile.

Dianne Miller, 44, an insurance agent, lamented the fact that she bought too much too fast during the U.S. housing boom, including an expensive new car. Now she is saddled with debt.

"I'm here because I want to get out of debt," she said. "To do that I'm going to have get a second job, start saving and go without.

"I'm not alone, look at the way we Americans have spent money," Miller added. "We're all going to have to go without."

Sales clerk Maria Miranda, 31, wants to plan for the future of her two small children and said she will probably start her budgeting by going for a less expensive cell phone package.

"I'm scared about what's happening to the economy," she said. "But I have to balance my own budget before I can start worrying about anyone else."

'THIS IS KILLING ME'

As Sanchez rolled through ways to manage your budget so you can save money -- including opting for cheaper cell phone package deals -- many of the people packed into the conference room at the Ramada Inn looked battered and discouraged.

"This is killing me," said local resident Danielle Sampson, holding her head in her hands.

Sampson, 40, a dental assistant, said she had two daughters in college and could not take on any more debt.

"My spending has exceeded my income and that has to stop," she said. "All of us are going to have to adjust."