“We did not buy any gifts at all this Christmas,” said Rachel, 27.

Traditionally, they would have spent at least $600 on presents for family members whether or not they had cash to do so.

“She has a big family in Minnesota and we spent hundreds on Christmas presents,” said Chris, 25.

Such a dramatic change in this couple’s spending habits comes as they seek to climb out of a nearly $25,000 debt hole with the help of financial counseling.

A couple for five years and married in September 2003, the Starrs have been working since November with Janet Hughes, a counselor at Financial Information & Service Center Inc. in Menasha.

Although Chris and Rachel did not keep a close eye on their spending habits, they managed to pay most of their bills until their income was abruptly cut by one-third.

Rachel quit two jobs in November when their son, Elijah, was born and the family had to stay afloat on only Chris’s salary as a stock clerk at Woodman’s Market.

Hughes said couples like the Starrs get into difficulty when they don’t keep a record of their spending and don’t know how much cash they have.

“This happens at all income levels, all backgrounds, all abilities, and it happens so easily and frequently,” said Hughes, who has been a FISC counselor for eight years.

Hughes’ first step with clients is to stabilize their income and spending so they understand how much money they have and where it’s going. She projects the Starrs will be debt free in five years and on their way to a goal of home ownership.

“Don’t be ashamed or feel you’re less of a person to come here and ask for help,” Chris said. “Everybody needs help.”

A nonprofit organization, FISC is a program of Goodwill Industries of North Central Wisconsin and helps people who have a wide range of financial issues.

Whether considering bankruptcy or planning for retirement, experiencing a major lifestyle change or just getting by, FISC has a variety of programs to answer individual financial concerns.

FISC offers several programs, including counseling, debt management and several money management workshops, that are open to the public at a cost of $15 per person and $25 per couple for the four-week series.

Held at the FISC office on Midway Road in Menasha, “The Power of Money” workshop teaches basic techniques in handling money and gives attendees a plan to reach short-term and long-term financial goals.

“Other workshops are ‘Credit When Credit is Due,’ ‘Get Checking’ and ‘Lifetime Money Management,’” Hughes said.

FISC offers another service, an initial 30-minute appointment that is free of charge where clients meet with a counselor to have financial questions answered. Financial counseling carries a one-time charge of $25.

“About one-fourth of our clients have debt management plans, which is formal arrangements of payment to us per month that we disburse to their creditors,” Hughes said.

Clients often are unaware of the total amount of debt they have, others have a ballpark figure in mind but want to know how they compare to others in similar situations.

Since FISC was started in 1985, couples have come for help with debt that totaled more than $300,000 and some single clients have amassed close to $100,000.

Debt consolidation loans and refinancing a mortgage to pay off debt are often touted as answers to getting out of debt, but they are not always wise choices.

“Now the consumer has a second mortgage or maxed out the home equity plus unsecured debt (credit card debt) has been turned into secured debt, putting the home at greater risk of being lost,” said Kay Bidwell-Aronowitz, FISC assistant director.

Additionally, if the loan amount exceeds the equity in the home, the homeowner can’t sell the home and move because he or she can’t get enough for the house to pay off the loan, Aronowitz said.

Financial counselors agree that getting out and staying out of debt can be boiled down to three steps: keep a spending record, make a spending plan and never incur any new debt.

Hughes earned a degree in psychology and business from the University of Wisconsin - Oshkosh in 1996, but she says she often feels like a marriage counselor.

She has found that it is often difficult for couples to communicate about what changes they need to make without the intervention of a neutral third party.

Hughes has seen many success stories of couples like the Starrs who take one step at a time out of debt and onto solid financial footing.

“We have to work together; we have the same goal,” said Chris Starr.