Ok ... so how was your holiday season? Did you stick to your budget or are you just waiting for the credit card statements and all those holidays bills to arrive? If you have more bills than you wanted, take the time to make a quick (and I do mean quick) finance plan.
Everyone is entitled to 1 free credit report (yes, really, with no strings attached and this is not the one that tries to sell you some "protection services", I promise) so if you haven't seen yours in a year, request one now. FREEannualcreditreport . Take a few minutes to go over it. Make sure the accounts listed on it are: yours ... correct and contain accurate information. If you see things that need correcting, all the contact information you need is right there for you. Call your creditors or write to them to get the information corrected or updated (like if you have paid something off or it's not yours). Every thing matters on your credit report and small things can make a difference. You want the best credit score you can get to have access to great rates on loans, other credit sources and even landlords check credit! Fix what you can then with the rest, make a plan.
Try this webpage: CNNmoneydebtplanner. They have a calculator that can show you the fastest ways to pay off those debts and you can even set a deadline to pay them off and it's all figured out for you! Hey, every bit of info helps.
To do it yourself: Figure out which (revolving, credit card or store) debt is costing you the most (either in amount of payment or interest) ... put this on the top of your list. (Yes, make an actual list.) Which debt is next largest? Put it second and so on until you have all your debts listed. Now, find a way to pay extra on the "top" debt. Can you pay more than the minimum? Do it! Ask for birthday, anniversary, graduation money instead of gifts. Have a yard sale, sell some stuff, cash in your broken jewelry for the weight of gold! Get a second job, do odd jobs, even if it is only temporary. The secret is this: When you pay off that 1st debt, (that bill disappears, so no more payment needed there) ... whatever (amount) payment you've been making ( to #1), now make that same (amount) payment on the next one down (#2)! You will never miss the money, you been sending it away anyhow, keep going! So debt #2 gets paid off in a hurry with the "extra payment" going on to it now! Once #2 is paid off do it again ... roll the payment you were making on #2 over onto # 3 or (#3 and #4) since they are getting smaller and smaller! You will have those bills paid off in no time and be living a "cash" lifestyle again while your credit will be climbing back up to where you want it. Ready for your next fiancial endeavor, at the best rates going!
Hope this helps, I want you to have great credit when you are ready to come see me and buy that next home!
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