Every holiday, various organizations try to catch the attention of consumers by finding clever ways to link the special occasion to a product or service they are offering.

For example, the Consumer Credit Counseling Service of Atlanta is encouraging people to declare their independence from credit card debt. Make this Fourth of July the start of your lifetime of economic freedom, says the nonprofit organization, which provides budget counseling, debt management programs and bankruptcy counseling.

"Using credit cards for purchases can put you at risk, especially if you aren't disciplined," said Suzanne Boas, president of the CCCS office in Atlanta. "It may feel like you aren't really spending money and, before you even realize it, you have amassed a large debt that is difficult and very costly to repay."

This creative effort by CCCS is better at least than someone hawking cars or TVs. This group's call for self-defense is useful considering the latest bankruptcy statistics. The number of consumer bankruptcies filed during the first three months of 2007 jumped to 187,361, a 66 percent increase over the first quarter of 2006, according to the Administrative Office of the U.S. Courts. That's compared with the 112,685 new cases filed in 2006. The filings also represent a 9 percent increase over the fourth quarter of 2006.

"New cases are being filed at much higher rates than a year ago, as more households feel the stress of high debt burdens, a trend that is likely to continue," Samuel J. Gerdano, American Bankruptcy Institute executive director, said in responding to the latest data.

This sad news comes at the same time that the five federal regulatory agencies that oversee banks, savings institutions and credit unions (and related subsidiaries) issued a joint statement directed at certain lenders. The organizations implored the lenders to be more forthcoming about the eventual sting that borrowers may feel after signing up for teaser interest rates on subprime mortgage loans. The regulators are particularly concerned about adjustable-rate mortgage products that are contributing to the rise in bankruptcy filings.

"Information provided to consumers should clearly explain the risk of payment shock," the regulators said.

The loans in question enabled people to get low initial payments based on a small introductory rate. Those teaser rates are expiring, and many borrowers are finding that they can't handle the larger mortgage payments, leading to increases in mortgage defaults and foreclosures.

About $467 billion of mortgage loans will reset for the first time in 2007 and another $383 billion will reset in 2008, according to Moody's Economy.com. Together, the $850 billion is equivalent to about 9 percent of the mortgage debt that was outstanding in 2006, said Celia Chen, director of housing economics for Moody's.

The crux of the regulatory clarification to lenders is this: An institution's analysis of a borrower's ability to repay one of these hybrid loans should include an evaluation of the borrower's ability to repay the debt after the introductory rate expires.

"D'oh!" as Homer Simpson says.

Here's an example, according to the regulators, of what they want lenders to do. Let's say a borrower is interested in a loan with an initial fixed rate of 7 percent. After the introductory rate expires, the loan would reset to the six-month London Interbank Offered Rate (LIBOR) plus a margin of 6 percent. If that LIBOR rate equals 5.5 percent, lenders should qualify the borrower at 11.5 percent (5.5 percent plus 6 percent).

The best financial practice is to factor the higher payment into your budget and never sign up for a loan product that will put your payments beyond your current means. A teaser rate is just as the name implies: a tease.

Somehow, that message was lost in people's efforts to get into a home.

John M. Robbins, chairman of the Mortgage Bankers Association, issued the following comment in response to the new guidelines: "This is a strong statement that will help curb abuses, but will likely also constrain consumer credit choices."

That's right. Although late, the recent regulatory action needs to limit the loans that some people can qualify for because, as we see with the subprime loan mortgage meltdown, life happens. Consumers were overly confident. As regulators pointed out, these subprime loans were supposed to be just temporary credit in anticipation that people would see their earnings grow, or refinance or sell the property before the new rate kicked in. For many, that didn't happen.

The road to financial success means factoring in the best-case scenario and the worst-case scenario.

True financial independence is making financial decisions based on the resources you have today, not on what you might have tomorrow. That applies whether you're borrowing on a credit card or applying for a home loan.

— Listen to Michelle Singletary discuss personal finance every Tuesday on NPR's "Day to Day." To hear her reports online, go to http://www.npr.org. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071. Her e-mail address is singletarym@washpost.com. Comments and questions are welcome, but due to the volume of mail, personal responses may not be possible. Please also note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.