ATLANTA, Nov. 10 The impact of smoking on your health is well documented. But counselors at Consumer Credit Counseling Service (CCCS) of Greater Atlanta know that it can also wreak havoc on a person's financial health. Whether it's helping people struggling with credit card debt or trying to avoid foreclosure, counselors find that tobacco use adds a significant amount to monthly household expenditures and they advise consumers to consider reducing or quitting smoking to save money.
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A pack-a-day smoker spending an average of $5.15 per pack could save $1,879 per year by quitting smoking. These funds could be used to cover living expenses, reduce household debt or start a savings plan. Invested in a basic savings plan paying just 3 percent interest, you would have in excess of $21,000 after 10 years. Over 30 years, that figure climbs to more than $91,000.
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"Quitting smoking is good for more than just your physical health," said Michelle Jones, Senior Vice President of Counseling for CCCS of Greater Atlanta. "Reducing or eliminating tobacco use can significantly increase the amount of money consumers have to use to pay off outstanding debt."
Even homeowners struggling to make their mortgage payments and seeking a loan modification may be able to benefit by reducing or quitting smoking.
"Any reduction in spending will show the mortgage company that there is more income to put toward a homeowner's monthly budget," said Jones. "The better their budget looks, the more likely the lender is to offer a favorable workout, such as a loan modification."
This year's Great American Smokeout is November 19, but any day is a good day to give up smoking. "Our clients get a great deal of satisfaction when they quit smoking," added Jones. "It's a great first step in improving their physical and fiscal health."
The financial benefits of quitting extend beyond just the cost of cigarettes.
Increased Employment Opportunities and Productivity - Some employers have begun hiring only non-smoking employees or instituting "no smoking" policies in an effort to reduce overall health care costs and increase productivity.
Reduced Health Care and Insurance Costs - Non-smokers often enjoy lower health and life insurance premiums and general healthcare costs than smokers. In Georgia, state employees who smoke pay $40 more per month for health insurance than non-smokers. Many states have enacted similar policies for smokers, including higher deductibles and increased co-pay rates. Average life insurance premiums for smokers can be double that of non-smokers. Non-smokers may also be eligible for discounts on homeowners' insurance premiums.
Decreasing Values on Assets - According to Carmax, a used vehicle owned by a smoker will narrow the market of potential buyers and can result in lower trade-in or resale values than comparable vehicles owned by non-smokers. Similarly, general maintenance costs on a home are higher for smokers and a home that has been smoked in can be harder to sell.
For more information and tips to quit smoking, visit the American Lung Association at www.lungusa.org
About CCCS
CCCS of Greater Atlanta offers online education classes that cover a wide variety of money management topics at www.credabilityu.org.
CCCS of Greater Atlanta serves clients in all 50 states and has 33 offices in four states. It is the headquarters for the CredAbility Network, a family of nonprofit agencies serving consumers in north Georgia, south and central Florida, middle Mississippi and east Tennessee as well as nationally via telephone and Internet.
CCCS is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC). Governed by a community-based board of directors, CCCS is funded by creditors, clients, contributors and grants from foundations, businesses and government agencies. CCCS offers around the-clock help by phone at 1-800-251-CCCS or at its Web sites, www.cccsinc.org and www.cccsenespanol.org.
SOURCE Consumer Credit Counseling Service of Greater Atlanta
