Tools and Tips
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Debt Solutions 10110 Top Credit and Debt TipsGet Your Debt Back on TrackBy Catherine
BillSavings.com Brief:
If you are feeling tempted to spend more than you make, take a look at these credit and debt tips. Now is a great time to start spending wisely. Get the family's finances under control with a budget and live within your means. Here are ten credit and debt tips to help you do that.
Most people today are looking for ways to save money. Instead of continuing previous spending habits and simply charging more for what you want, follow these credit and debt tips. Using credit to pay for things you cannot afford will only cause more problems and add to your sense of despair. Now is the time to tighten your belts and get spending under control. The credit and debt tips can help you do that. 1. Know your own information Get a hold of your credit report and credit score every six months. Fight any suspicious activity that could make your history look bad or drag down your score. This will also help you fight fraud and identity theft. Check your bank statements at least once a week for the same reasons. 2. Charge wisely Do not use credit cards to buy items that go down in value. Only use your cards for convenience or emergencies and make sure you pay off the balance every month. If you want something that you cannot afford, put aside a little bit each month and make the purchase when you have the cash to do so. 3. Stick to a budget A budget can help you live within your means. Know how much you have coming in through income and how much is leaving through bills. Make sure you allocate a certain amount each month to savings and driving down your debt. Pay off the credit cards with highest interest first and then make your way down the list until they are all paid off. 4. Transfer balances If you are paying outrageously high interest rates, look into consolidating your cards into one. Keep in mind the transfer fees and other costs, but if it will save you money and help you pay off your debt sooner, then go for it. And always pay more than the minimum. 5. Change your lifestyle You can save money every month by cooking at home, putting off big purchases you don’t need, finding a roommate, or carpooling. Instead of an expensive retail shopping, have you tried looking online or going to free sites? What about thrift shops? Get books from a library instead of a book store. Ride your bicycle to work or use public transportation. Dress in layers inside during winter so you can turn down the heat. 6. Negotiate Call your credit card company and ask for a lower rate. If you know the prime interest rate before you call, that would be helpful as well. Take notes during the conversation and then put the request in writing. If they don’t act in a way that’s satisfying, threaten to take your business elsewhere. Find a better deal with another company and then close the original account and transfer your balance to the new card. Then pay it off. 7. Know your rights Read your statements and bills every month and make sure you understand the various charges. Even telephone companies have been known to make mistakes. If interest rates go up on your credit card unexpectedly or some other change occurs, get on the phone with customer service and don’t let up until you get a satisfactory answer. Contact your legislator for more information about laws designed to protect and educate you. 8. Understand the details Grace periods, installment payments, paying the minimum due, and late charges are important parts of your bill summaries and credit card agreements. Make sure you understand these details so you can make good choices and pay off your bills faster. What happens when you go over the limit on credit cards? You need to know so your credit stays good and payments don’t go up. 9. Practice good habits Pay your bills as soon as you get them. If it comes during a time of the month that isn’t good for you, simply call customer service and ask for a different due date. Save even more money paying the bill online or through a convenient electronic funds transfer. 10. Seek professional advice If you are drowning, the best thing to do is reach for a life vest. Credit counselors can help you consolidate debt and work with lenders to get lower interest rates, allowing you to pay off more than you otherwise could. If you are getting divorced or liquidating a business, accountants and attorneys should be able to advise and guide you through the process. Retirement brings with it a host of issues. Find a good financial advisor who doesn’t work on commission to make sure you enjoy your golden years with fewer worries. If you follow these simple credit and debt tips, you will begin to reap the benefits of financial independence. 1/15/2009
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