You have plans for your family and future . . . maybe a new house, or a new car to replace the worn-out model you’ve been driving since your college days. Perhaps you’re looking way into the future to when your children are heading off to college, creating a need for loans and financing?

See our video review of the Suze Orman FICO Kit and Financial Planner.

In today’s economy, Americans are dealing with the credit crunch by keeping cash on hand. In the process, however, the average consumer is paying 2.6 bills late every month, according to the Western Union Payment Services Money Mindset Index.

Unfortunately, late fees and additional unnecessary charges can stack up quickly, depleting your cash flow and harming your credit score. Here’s how it works:

The longer you maintain a track record of paying your bills on time, the better your credit score, according to the Fair Isaac Corporation, which created the FICO score, more commonly known as a credit score. Your bill payment history accounts for 35 percent of your credit score, which is used to determine your eligibility for mortgages, auto loans, credit cards and other financing.

However, late fees can lower your credit score — and there’s no quick fix. When you apply for a loan, a low score may hinder your efforts to secure funds.

“Managing your finances can feel like a juggling act that won’t end,” says David Shapiro, senior vice president of Western Union. “Flexible payment plans can help consumers keep their cash flow strong by timing the paying of bills to when they get their paychecks. This allows you to avoid late charges and risking credit standing. Over time, consumers can build a strong credit history, allowing them to finance a car or a home when they are ready.”

In tough economic times, Shapiro and other experts say, lenders will scrutinize your credit score even more. Many credit offerings and debt consolidation loans may seem advantageous, but can actually lead to debt disaster. Here are simple tips for avoiding unnecessary fees and maintaining a good credit score:

In tough economic times, Shapiro and other experts say, lenders will scrutinize your credit score even more. Many credit offerings and debt consolidation loans may seem advantageous, but can actually lead to debt disaster. Here are simple tips for avoiding unnecessary fees and maintaining a good credit score:

* Avoid credit agencies that charge fees to improve your credit score. You can go online to reputable sites such as money.com or kiplinger.com and receive free advice.

* Research flexible payment plans that allow you to make smaller, more frequent affordable payments, such as paying a bill twice a month, but at smaller increments that suit your monthly budget.

* Pay off credit card debt. Maintaining low balances can show your ability to manage bills and can increase your credit score over time. Once you pay it off, try to only carry a balance that you can pay off in a month. Paying off your balance each month in full can help your credit score.

* Consider same-day payments. You can maximize cash flow by paying your bill the same day it is due. For example, you can make an in-person cash payment at more than 45,000 Western Union Agent locations, and receive proof of payment within minutes. Visit WesternUnion.com to find the closest agent near you.

* Check your credit report. You can get a free report at annualcreditreport.com or by calling (877) 322-8228. If you see a mistake, take necessary steps to get the mistake corrected as soon as possible.

* Learn more about credit scores. Download a free educational brochure from Fair Isaac Corporation’s Web site, www.myfico.com.

Just a few simple steps can make a big difference in managing your finances. Once you have a plan in place, what seems like a juggling act will turn into a smooth transition.

Facing the most difficult economic conditions in decades, many Americans are sobering up to the fact that they’re deeply in debt.

For many American households, extraneous spending and poor money management combined with an unforeseen event, such as a job layoff, a health crisis, divorce or a death in the family, has resulted in the perfect cocktail for financial disaster. In fact, a recent survey by FindLaw.com, the world’s leading online source for free legal information, 10 percent of Americans have considered filing for personal bankruptcy at some point in their lives.

There are several danger signs that you’re headed for financial trouble. One of the most worrisome is living paycheck to paycheck. If you are, you’re not alone. According to a 2008 survey by the American Payroll Association, 71 percent of American workers are living paycheck to paycheck. Other danger signs include:

* Making only minimum monthly payments on your credit cards

* Using a series of consolidation loans or home equity loans to pay overdue bills

* Taking out cash advances to pay other bills

* Incurring a growing number of late fees due to late bill payments

To help you get out of debt and avoid bankruptcy, here are eight tips from FindLaw.com:

Get Help Now.
You’ll need willpower and a lot of support from those around you to get out of debt. For many people, having someone who can hold you accountable, as well as someone with whom you can celebrate the little victories, is essential to reaching your goal of becoming debt free. For expert help, seek the assistance of a debt management or credit counselor, which are available through many social service agencies. Try visiting the United Way at www.liveunited.org or call (888) 995-HOPE for a toll-free foreclosure prevention hotline sponsored by NeighborWorks America and the Homeownership Preservation Foundation. If you’re facing foreclosure or are wondering about declaring bankruptcy, immediately seek the counsel of an attorney specializing in debt management and bankruptcy.

Pick Up the Phone.
Don’t wait for your creditors to call you. Call them to negotiate a new payment plan that you can realistically handle. Some creditors might be willing to settle their claim with you for a smaller cash payment, or they might be willing to stretch out the term of the loan and reduce the size of the payment.

Budget Time — Back to Basics.
Food, clothing, shelter and transportation — focus on these basics when you start to determine which expenses are essential and which are not. Start a monthly budget by tracking your expenses against take-home pay (cash flow). Cut the non-essentials and look at how you can reduce the costs of your essential expenses. For example, stop dining out and instead take your lunches to work and make meals at home, or reduce your transportation costs by taking public transportation instead of driving to work. Likewise, start to look for opportunities to increase your income, from taking on a second job to selling household items on eBay or Craigslist.

Pay Essential Debts First.
Paying all of your debt down is important, but there are some bills that are more important the others. Go back to the basics — mortgage, electricity, heat, water, etc. This may sound obvious, but when pressured by bill collectors, many people forget the obvious.

Don’t Skip These Expenses.
Depending upon the laws in your state, there may be some expenses that you must incur, such as auto and medical insurance, student loan payments, child support payments, license fees, and of course, paying local taxes as well as state and federal income taxes. Skip any of these expenses and you may wind up with a much bigger headache.

Go Automatic.
Have your employer automatically deposit your paycheck into your bank account. But don’t stop there. Arrange for the most essential bill payments — mortgage, electricity, heat and water — to be automatically withdrawn from your checking account. If you have a mortgage, escrow property taxes to ensure that they’re automatically paid.

Cut the Lattes and Lottery Tickets.
Now is the time to cut back on all of those little non-essentials that eat up your budget — the lattes at your favorite coffee shop, buying lottery tickets or purchasing that mid-afternoon candy bar or soda from the company vending machine.

Beware of Credit Scams.
Beware of ads and phone calls from debt management companies that tend to target consumers with poor credit histories, promising (for a fee) to clean up your credit so you can get a car loan, a home mortgage, insurance or even a job. The telltale sign that it’s a scam is if the company demands payment up front for their services.

For more information about getting out of debt and avoiding bankruptcy, visit the Ultimate Debt Guide.