It can be very easy to find yourself in trouble with your finances. With all of the credit card offers we’re constantly bombarded with and the temptation of accepting the extra percentage off at the department stores if you apply for one of their charge cards, sometimes it can become so hard to resist. Life happens and sometimes an unexpected event happens in your life and you are unable to keep up with your financial responsibilities. It is also very easy to get to a point where you feel like it is so bad that is no longer under your control. Once you get to the point that you cannot keep up with your bill payments, every late payment is recorded on your credit report and inevitably and unavoidably, your credit scores will begin to decrease. It is not a good idea to continue down this path because when you try to make any big purchases such as a car or a home, this history will come back to haunt you. If home ownership or buying a new car is something that you see in your fairly near future, getting control over your finances should become priority one for you right now. Financial debt can begin to feel like this thing that haunts you and is constantly hanging over your head. The worse thing that you can do is to ignore your bills because this only makes matters worse, especially if you want to avoid the possibility of getting so bad that you have to file for bankruptcy. It is important to know that is never beyond your control to get your finances under control. If you are struggling to pay multiple credit cards, medical bills, car payments and feel like you are going to drown in the sea of your debt, a consolidation loan should definitely be a consideration for you. However, you have to be serious about getting out of the situation that you are in and be able to discipline to make your payments on time. If you are unable to do this, you may find yourself in more trouble then you were in to begin with. Consolidating all of your debt into one payment may make it easier to budget your money instead of trying to keep up with payments for bills that are most likely due at various times throughout every month. Along with this, it is imperative that during the time that you are paying your consolidation loan, you do not acquire any additional credit. That would pretty much defeat the whole purpose of what you are trying to do. However, if you are able to stick to your plan and make your payments on time, you will begin to feel the weight of your debt being lifted off of your shoulders. This will not be a quick and easy fix but the benefit of getting control of your debt, consolidating your debt and making your payments and bringing your debt down will be well worth it in the end. Eventually, your credit score will begin to increase and allow you the freedom to be able to acquire the things in life that you need such as a home or a car at lower interest rates due to your improved credit and score. The sense of accomplishment you will have will be one of the best feelings in the world.
Posts Tagged ‘Credit Cards’
The Top 10 Ways to Take Back Control of Your Finances
December 31st, 2009If you’re like many people these days you have a least some issues regarding your personal finances. Far too many people are living paycheck to paycheck and are barely keeping their heads above water. These people often find themselves being just one missed paycheck from financial disaster.
Perhaps you are only making the minimum payment on your credit cards each month. You could be one of the unfortunate people who are finding they need to use their credit cards for regular expenses like groceries. Or maybe you just feel like no matter how much you make, you seem to spend it as fast as you get it.
Whatever your situation you probably just want to regain control of your personal finances. There is the way to control your spending, get out of debt and build savings. Yes. I said it. Build your savings.
There is a relatively simple way of taking back control of your money. Like all endeavors, it starts at the beginning. Here are the Top 10 ways to begin to get your finances under your control.
1. Decide to do it.
This can be as hard or as simple as you want it to be. There are many people who will read this article with the intention of taking back their financial future. Too many will read all of the suggestions and then they will do nothing. Don’t be one of those people. Make your decision now.
2. Commit to do it.
Unlike the 1st suggestion, this one may not be as easy for some. Only your commitment to take control of your finances will lead to success. You can’t wish it, want it, hope for it or just say you’ll do it. You must commit to doing it and committing means taking action immediately. Like as soon as you are finished reading this article. You will only succeed by taking action.
3. Make a list of all spending.
No, I didn’t say expenses, I said spending. All of it from food, prescriptions, credit cards, mortgage, car payments and car insurance, newspaper and magazine subscriptions, etc. Take your time. It is likely that you will miss a few things the first time you sit down to make your list. Don’t worry about that. You can always add in the things you may have forgotten later on.
4. Really know where the money goes.
Now, you might think I’m repeating number 3 but I’m not. The best way to know where your money is going is very simple. For one month you will record in writing every check you write, every credit card purchase and every dollar and cent that you spend. This is the only accurate way to know how much you are spending each month.
5. Separate the needs from the wants. Like step 1, this step will be as easy or as hard as you choose to make it. But it is very simple. Food = need. Fast-Food = want. You don’t need expensive clothing, shoes, etc. You want them. If you’re committed to this, you’ll find that your wants are things you can do without, at least for a while. Master this and you’ve gone a long way to regaining control of your finances.
6. Make a realistic budget.
And stick to it. It is not about depriving yourself but it is about money management.
7. Pay yourself first.
Yes, you’re reading that right. You get paid first. This will become what the rest of the world calls savings. It is to be used for your future or unplanned emergencies should they arise and too often they do. Having some money in the bank can help cushion the blow.
8. Find ways to save on your needs.
If you want control of your spending then rid yourself of any issues you may have about shopping at discount stores, using coupons any buying store brand items over name brand.
9. Reduce your debts.
To reduce your revolving debt such as credit cards, you should either pay off the smallest balances first or pay off the debts with the highest interest first. There are different schools of thought on this, but you have to decide which is best for you.
10. Set goals and when you reach them, reward yourself.
This last one may sound contrary to all the suggestions that have come before, but it is not. As I said in number 6, this is not about depriving yourself. It’s about properly managing your money. If you’re following these suggestions and succeeding in getting back control of your money then rewarding yourself a little now and then is a good thing. It adds incentive to reach your goals.
And there you have it. The top ten ways to begin gaining control of your personal finances and in doing so, take back control of your life. It’s your money. It should under your control.
Credit Card Hazards That Can Cripple Your Finances
December 24th, 2009Credit card debt is so easy to get into–over and over again. Most people don’t feel like they are spending real money until the bill comes, and then it’s too late. The credit card companies know how to make it very tempting to fall back on any good habits we’ve created and just spend away. It’s hard to get away from, but we have to resist temptation.
When establishing good credit, one of the things we’re told to do is to get a credit card and then use it to spend wisely. Experts advise us to pay our bills on time and not to exceed the credit limit. However, no one really talks to us when we get that first card about how easily and quickly we hit that limit, or how easy it is to miss that first monthly payment. Once you get behind, it can be really hard to catch up. Oftentimes, credit cards come with introductory interest rates that are nothing or very low. But many times, those rates soon change and you can find yourself with a full balance on your card with an 18 or 20 percent interest rate! That interest rate can then put you over your limit, if your not paying at least the minimum payment, now making you susceptible to over-the-limit fees. Before you know it, you are getting bad reports on your credit reports for credit card debt on a card that you haven’t even had very long.
Unfortunately, when times are hard, abusing credit cards is all too easy. When the economy is bad and cash is tight, it is all too easy to put your daily living expenses on your credit cards. If there is any kind of pattern like this in your credit card spending, it can build huge credit card debt pretty quickly. If you are not making your credit card payments, the credit card companies do inquiries to verify your address or other information. Every time they make an inquiry on your credit report, it makes you look like even more of a high risk, further worsening your credit history. All the credit card debt on your report, even if some of it is good, can make you look high risk for car loans or mortgages – especially if any of those cards hold high balances. Even worse, that bad credit report can keep you from renting an apartment or getting a job that requires a background check.
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