Compulsive gambling that causes psychological, financial, legal or marital difficulties is not a rare problem.  Roughly, six percent of the 125 million Americans who gamble at least once a year have some form of a gambling problem, and another 12 percent are "at risk" to develop a problem, according to the 1999 National Gambling Impact Study Commission. Financially, gambling problems can result in postponement of other family financial goals, severe debt, even bankruptcy.

Only addressing the financial issues won't stop a gambler's addiction. Compulsive gambling is a disease that usually requires professional treatment. Indeed, traditional financial solutions could actually make matters worse. But the gambler and the gambler's loved ones can take steps to minimize the financial consequences or recover financially from a gambling addiction.

The gambler and the gambler's family should consider taking several immediate financial steps, regardless of whether the gambler has stopped gambling and entered a treatment program. A spouse or anyone else who jointly owns credit cards, savings and checking accounts, or other financial assets with the gambler may want to remove their names from those accounts and establish accounts in their own name. Spouses, relatives and friends should refuse to co-sign loans or other financial obligations, or otherwise "bail out" the gambler. Someone other than the gambler should take over payment of household bills. If the gambler is cooperative, now is a good time to take a close look, perhaps with a financial professional, at the family's overall financial situation.

One word of caution: Gambling experts advise family members to never cut off or otherwise restrict a gambler's access to money if they fear that the gambler could become physically abusive in an effort to gain access to the money.  One of the major financial strategies for problem gamblers is to shift control or even ownership of the gambler's and the family's money solely into the hands of a nongambler in order to restrict access to financial assets the gambler could use to feed his or her addiction. For example, consider depositing the gambler's paycheck (automatically, if possible) in a checking or savings account that's only in the spouse's name, and paying the gambler a small weekly or daily cash allowance. The gambler also should close all credit card accounts in the gambler's name.

Some families have even shifted joint ownership of the house, cars, recreational vehicles and other valuable personal property solely into the name of the nongambling spouse. Where both spouses or partners are gamblers (not uncommon among retired couples), consider turning control over to a child or a trust. However, moving ownership of assets can create potential legal and tax problems, so be sure you seek professional financial advice before making such moves.

Retirement accounts present another sticky area. Gamblers frequently raid retirement or individual retirement accounts. In some cases, you may be able to move the assets into the name of a nongambler. This will likely trigger income taxes and perhaps penalties, but that may be a better choice than watching the money gambled away.

Excessive debt is often a problem for families with compulsive gamblers. Again, efforts to repay debts may require nontraditional strategies. For example, quick repayment of debts generally should be avoided. Experts believe that lengthy repayments remind the gambler of the problems he or she has created. Quick repayments, such as loan consolidations, may actually encourage a return to gambling by freeing up money. Avoid bankruptcy. It is another way to "bail out" the gambler. Family members and friends should never put their own money toward the gambler's debts. Indeed, family member and household accounts such as the family vacation fund that was raided to pay for gambling should be part of any repayment schedule.

For additional information or to obtain a copy of the booklet Personal Financial Strategies for the Loved Ones of Problem Gamblers, produced by the National Endowment for Financial Education and the National Council on Problem Gambling, call 202.547.9204.