Tips to Be Debt Free, Part 2

This post is a continuation from the one that began yesterday.

2) Make a very detailed budget for all your monthly expenses. Be sure to have enough so you are able to make at least the minimum payments on all of your debt.

3) From the lists above pick the smallest debt as your target. Pay as much towards this debt as you can without cutting payments on your other debts.

Once you manage to pay off this debt completely, take that money and apply it to the next smallest debt. Keep doing this again and again until your debt is all paid off. Doing this will allow you to pay off all your debt, even if you can’t get extra money coming in.

This method works, it just takes discipline. You’ll have to make sacrifices if you want to be debt free. That means making a reasonable budget and sticking to it.

But if you stay disciplined, and keep at it, you will eventually find yourself out of debt, which will bring you peace of mind and will make all the sacrifices seem worthwhile.

Yours in working to keep debt free,

P.S. You can read more tips on debt consolidation and keeping debt free here

Tips for Improving Your Credit Score Some More

Yesterday, I started my post on 5 Tips for Improving Your Credit ScoreScore. Since I was including a lot of great information, the post got a little long and unwieldy. So I’ve split it into two days’ of reading.

Here are the last of the five tips on “Ways to Improve Your Credit Score”. Starting with number 3…

3. Understand how your credit score is determined.

Your credit score is usually based on the answers to these questions:

** Do you pay your bills on time? It’s very important how you answer this question. For instance, if you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.

** What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.

** How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.

** Have you recently applied for new credit? If you have applied for too many new accounts recently, that may negatively affect your score. But if you request a copy of your own credit report, or creditors are monitoring your account or looking at credit reports to make pre-screened credit offers, these inquiries about your credit history are not counted as applications for credit.

** How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

Visit the Federal Trade Commission’s publication on credit scoring at their Web site.

4. Learn the legal steps you must take to improve your credit report.

The Federal Trade Commission’s “Building a Better Credit Report” has information on correcting errors in your report, tips on dealing with debt and avoiding scams—and more.

5. Beware of credit-repair scams.

Sometimes doing it yourself is the best way to repair your credit. The Federal Trade Commission’s “Credit Repair: Self-Help May Be Best” explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

Now, if by some chance you missed yesterday’s post with the beginning two tips, all you need to do is to scroll down below this post and read away! Or, you may just want to click to here and here for more interesting and helpful reading right here at this site.

Yours In Improving Your Credit Score”

More Tips to Reduce Debt

Well, I just had a rude awakening

I readied this blog post for automatic publication yesterday. In fact, if you had been following our thoughts since July 22, and had come here to read the “end” of the tips, you would have seen that they were missing.

Alas!

Unfortunately, these tips were still in “draft” status because inadvertently I did not set this post to “publish”!

So, better late than never…here are some thoughts on “More Tips to Reduce Debt”

Get rid of your credit cards

If you are determined to reduce your debt, cutting up your credit cards will help. Because, if you do not have them you can not use them! If this is too big of a step for you (as in too, traumatic), at least get rid of the most unnecessary ones.

If you can swing it, it’s really a good idea to keep only one or two, low interest rate cards for emergencies only!

And consider that if you can not pay cash for something, then you probably do not need it.

Pay off your debts

If you have already acquired some debt you need to pay off, now is the time to get started. Decide which debt is your smallest and start with that one. Pay on it as your budget will allow.

Once you have your smallest debt paid off, you will have a feeling of satisfaction and know you can pay off your debts. Then move to the next smallest debt. It is much easier to paying your debts off one by one, and you will feel less overwhelmed.

And before you know it, all of your debts will be paid and you will feel great knowing you paid them off.

Debt consolidation

Debt consolidation is another option to consider for reducing your debt. Debt consolidation companies will call your creditors for you, and make payment arrangements for your debts. Many companies will get you one low monthly payment to pay each month, until all of your debt is paid off.

Financial counseling

Make an appointment with a financial counselor to help you reduce your debt. Some people find having someone else point out the errors in their spending habits helps them tremendously. Financial counselors can also show you how to better manage your money, and stick to a budget.

Yours in change,

Reduce Your Debt with Today’s Three Tips

Are you stuck with debt?

In recent months, “debt”, “debt consolidation”, “debt reduction” and the like are first and foremost quite often on our minds. So, here’s news! Today and tomorrow, we’re sharing some tips for you to consider to help you make decisions about reducing your debt.

As debt continues to increase in many households across America, more families each year are looking for ways to reduce their overall household debt.

For some, this may be easier said than done.

Debt reduction requires a lot of hard work and dedication. Especially when you are used to spending money left and right.

Those that are serious and committed to reducing their debt will eventually reap the rewards of being debt free.

And by reading my simple tips today and tomorrow it is my hope you will discover many ideas, about how you can reduce your debt.

Cut back

When you start to cut back on spending, you will find other corners you can cut throughout the month that will help you pay off your debts. Simple things such as, being aware of all of the electricity you use–and turning off lights that are not needed as you leave a room, will help reduce your light bill. Therefore, you save a little more money with which to reduce your debt.

Once you become aware of your spending habits, and pay attention to them, you’ll start cutting back and begin to notice more ways to cut back each month.

Budget Your Income

List all of your monthly bills and their due dates. Apply them to your budget, as well as to your other household needs; for example, groceries, gas etc. Allow yourself only so much money per month to spend on extras.

Sticking to your budget will show self-control, and your determination to reduce your debt.

Limit the use of your Credit cards

If you cannot pay cash for it, then do not buy it.

And if you have to charge something, make sure you can pay the balance in full when your next credit card bill comes in.

Never put a charge on your credit card to only pay the minimum monthly amount. You will never get that maxed out credit card paid off that way.

The importance of paying your credit card balance in full, cannot be stressed enough.

Of course, there are many other tips to help reduce your debt. We have four more we’ll share with you “tomorrow.”

See you then!

Note: But “tomorrow” never came! I just stopped back in here now and learned this post never got out of draft status.

So, I’m activating it now.

Best regards,

A Step or Two Toward Creating Good Credit

There are many things you learned “at your mother’s knee” or in your early years in school as you were growing up. One of those might have been how to take care of your money.

Those little “piggy banks” had a place in your life for something.

So now, all grown up, as a consumer you’ve continued your learning about the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score.

A bad credit history or bad credit habits will place “black marks” on your credit profile. These include things such as late payments, having an account assigned to a collection agency, and of course bankruptcy.

Establishing good credit habits and therefore a good credit rating will improve your credit worthiness. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.

Here are 4 tips to help you create a shining credit profile:

1) Pay Your Bills On Time

Lenders only have your past payment history on which to decide the type of credit risk you present to them. How you pay off your debts now indicates to them how you will pay off future debts.

2) Don’t Use Too Many or Too Few Credit Cards

How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is just the right mix.

3) Pay At Least The Minimum Due

Always pay at least the minimum due payment, but never less. And remember, just paying the minimum payment means it will take you years and years to pay off that credit card.

Example: Paying off a $2,000 credit payment at 18% APR with a minimum monthly payment of 2% ($40 dollars or less) will take you 30 years to pay off the amount plus interest.

4) Review Your Credit Report Regularly

Monitor your credit report from all three major credit bureaus – Experian, TransUnion, and Equifax – on a regular basis. Check your credit profile at least annually. Review it carefully and make sure that any past mistakes or disputes have been corrected.

Also, if you notice an account listed that you know that you have not personally opened, contact that creditor and the credit bureaus immediately. This could be a sign that you’ve had your identity stolen.

Request to have a fraud alert placed on your profile and account to protect yourself and your credit. Identity theft is the fastest growing consumer crime in America, with an estimated 1 million people victimized each year.

Establish good credit habits early in life and reap the benefits that your good credit rating will provide you for the rest of your financial future.

Stress Breakers

Do you go with the flow?

Or does anxiety keep you on edge, holding you away from enjoying life? To a great degree, our personality determines how we deal with the stress in our lives. But I have some things to help you keep your stress under control:

Today and tomorrow, I’ll post five very popular suggestions:

1. Sleep more. It’s very common in our society to “exist” on less than 6 hours of sleep a night! And that’s about what it is, when it’s less than 6 hours!

But experts keep saying we need at least 8 hours! Not just to rest our bodies, but to rejuvenate our minds. “Tired” and “cranky” seem to go hand in hand. Don’t use your bedroom to watch the news or finish up some work from the office. Make that room your haven, a place to relax and escape the day. Have a hot cup of tea, take a warm bath, or read a paperback to help you unwind.

2. Have faith. Saying a short prayer in times of stress can give you a sense of calm, especially when the situation is one you really have no control over.

Studies have shown that people who trust in a higher power have lower blood pressure. Being able to forgive people can also affect your blood pressure.

Holding a grudge is not good for your health!

Just watch the daily news for testimony!

Now, so as to not cause more undue stress, I invite you to stop back here tomorrow to read the rest of our tips for “busting” stress!.

And in the meantime, “practice, practice” today’s tips.