In today’s simple six steps I thought I would tackle on something that most people and myself could relate to: fixing your credit. I’ve already been taking monumental steps in cleaning up mine and then most importantly maintaining it. From school loans to one or two credit cards, a bill here and a bill there you can get yourself caught up in some financial nonsense. Now, I am not a financial connoisseur of any sort not do I have a degree or certificate in giving advice about money but instead I am a normal person trying to get my own ish together. I thought however I would share some info on the things I’ve learned along the way in my journey to reach monetary superiority.
1. STOP!!!! Chances are whatever you’ve been doing with your money you need to stop. Stop shopping excessively. Stop disrespecting yourself and your hard earned money. Stop ignoring the fact that you have issues with money! Stop and take a deep breath. Everything’s going to be all right.
2. FIND OUT WHAT’S GOING ON. Find out your credit score and learn your credit report. If I’m not mistaken your can get 2 free credit reports each year. Try sites like Credit Report or google “free credit reports” and you’ll find tons of sites that will give you FREE access to your credit report. (None of these sites should charge you anything. If they do, it’s a scam to get your money. They may ask for your credit card information to verify ID, but that’s it. You should receive your report seconds after you register with the site.)
3. CONTACT SOURCES. Once you do find out who you owe and how much you owe them, call them (or email in some cases) and set up a payment plan. A lot of the people you’ll speak to may try to get you to pay your entire balance in full or tell you that you have to make a ridiculous payment. FALSE! Truth be told, you’re not in the situation you’re in because you can afford to pay $200 a month on your credit card. Explain to them your situation (or don’t) and TELL them what you are going to pay. After all, it is your bill and your credit. Trust me when I say they are not going to turn away an payment as long as it’s reasonable. If you can only afford $25 a month to pay off a debt…so be it! Even if it takes you 18 months, get it done.
4. CREATE A BUDGET. Now that you’re on your way to the top paying off all your bills…you’ve got to come up with a plan to make sure you have the money to do it. So naturally, you’re going to have to cut some of your spending or get another job. (Because I’m sure going to the first one you already have just isn’t enough…) No need to over exert yourself with another place of employment. Reduce UNNECESSARY spending by not eating out a lot, shopping excessively and going out. Instantaneously, it may suck a little bit but in the long run it’ll be soooooo worth it. Trust me. Pay attention to every penny you make! Make sure your “living” bills are covered like rent, car note, insurance, cell phone, gas and groceries. Then put something on a debt whether it’s a credit card, school loan, etc. according to the payment plan you came up with your creditors. Put 10% aside for savings and then use the rest you have as an entertainment budget. (Soon enough you’ll realize that you don’t need to be entertained as often as you are now.)
5. SET A DEADLINE. What’s the point of making a goal if you don’t know when you’re supposed to reach it? When do you want to be debt free? 6 months from now? A year? Two years? Set a goal on your calendar and make sure it’s realistic. If you have $2000 debt to pay and you’re making $50 monthly payments, 6 months is not the goal for you.
6. STICK TO IT. There is no point of doing the following if you’re not going to stick to it. Be consistent and follow through. It’ll be hard in the beginning and actually it may be hard the whole way through but in the end it’ll PAY OFF and your debt will be paid off!
So that’s all I’ve got to say about that. Good luck. Oh, and you’re welcome.
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