2012 New Years Resolution... Tips on Fixing Your Credit? Part 3
Posted by Info BestCreditRx on Tue, Jan 17, 2012 @ 05:12 AM
Ok here is the last tips we have about fixing your credit and things to think about. I know some of these things you must be saying, "I dont have the money for that," well guess what, alot of people don't and you have to start somewhere. We're positive that everyone can scrap together a little cash to start saving and putting away!
Start an emergency fund: When you have an emergency fund, you don't have to resort to credit or loans when you have a financial emergency, like a major car repair. Building an emergency fund can take considerably less time than paying off a credit card used to cover an emergency expense. The ideal emergency fund will pay for six months of your living expenses, but socking away $1,000 or $2,500 is usually a more realistic short-term goal.
Pay less interest: Essentially, interest is the cost of having credit. The money you pay in interest pads your creditors' pockets when it could be padding your own. You can pay less in interest by negotiating lower interest rates or paying your balances off sooner (or both). Transferring balances to a zero percent interest rate balance transfer credit card can also temporarily reduce your interest payments.
Stop paying late fees: Paying late fees is another unnecessary expense that goes to your creditors. Not only do late payments result in late fees, you might also see a spike in your interest rate (after a 60-day delinquency) and a drop in your credit score. These negative results can be avoided by paying your credit card bills on time.
Live within your means: To live within your means requires big changes. It means using a budget to keep your spending in check. Tracking your spending to figure out where your money is going. Finally, you'll have to stop using your savings or credit cards to extend your paycheck.
