The path to credit repair is filled with change. If you struggle with budgeting and impulse buying, the motivation to work with a credit repair service may be lacking. While drastic change is never easy, the time to dig deep and change your perspective is now. Consider the following factors the next time you feel tempted to splurge. The effort you make now could save you thousands in the future.
Balancing family and credit repair can be tough, especially with a house full of kids. The seemingly endless list of expenses may have you thinking, “I will never fix my credit!” Don’t give up yet. There are plenty of fun ways to include your children in the credit repair process. Read on for some helpful tips.
We’re well into Spring, the season where so many well-intentioned New Year’s resolutions erode as quickly as the temperatures rise. Have “I will lose 10 pounds by March,” and “I will stop watching too much TV” become broken promises already? Unfortunately, although the point of a resolution is to evoke positive change, rarely is the end-goal achieved. This year, though, why not make a Spring resolution that could change your life? Credit repair has the potential to improve your credit score, lower your interest rates, and generally enhance overall financial freedom. Consider shaking Winter’s doldrums with these financial resolutions:
continue reading “Five Spring Resolutions We Hope You Keep” »
Tax refunds can be a welcome relief for families each year, especially for those living from paycheck to paycheck. You might have big plans for that money already—a trip to warmer climates or a down-payment on a new car. But what about credit repair services? Sure, the alternatives might be more fun, but regaining control over your financial reputation is a long-term goal amidst short-term frills. Consider investing some of your return into the following areas. Your credit repair efforts will thank you.
1. Tackle debt. The majority of people have debt. It’s part of life, right? Maybe, but struggling under a mountain of unpaid bills is not. Take the opportunity to get ahead by tackling debt with your tax return. Remember: Paying down revolving credit is almost always rewarded with higher credit scores. Start by paying off credit cards with the highest interest rates, and work your way down. Not only will you likely improve your credit repair efforts by improving your credit scores, you’ll also reduce your monthly payments and free up cash each month to enjoy life. It’s a win-win-win.
2. Bulk up the emergency fund. Credit repair services can help you pick up the pieces after unexpected events. The roof caved in, you lost your job, or maybe your kid just needed braces—whatever the reason, you needed cash and perhaps fell short. Building an emergency fund can shield you when times get hard. Avoid credit repair problems in the future by sending some of your tax refund straight to the savings account.
3. Invest in education. Student loans are one of the highest causes of chronic indebtedness and bankruptcy in the U.S. The financial challenges that new grads face today are likely to continue despite any economic recovery or government reform. So don’t rely on the system to fix itself in time for Junior’s freshman year. Help your kids avoid their own need for credit repair by helping them save for school now. IRAs and 529 savings plans can help you build a college fund and reduce their dependence on federal or private aid. What better reason to invest your money?
4. Save for retirement. Here’s a worst-case scenario for you: You are 65 years old, married with three kids, and completely tired of working. You would love to retire, but you have only saved about 10 years’ worth of income. This scenario is a reality for many Americans who cannot afford to retire. Whatever your financial situation, saving for retirement is critical. The earlier you save, the more compounding interest will work for you instead of against you. Use your return to invest in a Roth IRA or other vehicle that will allow you to withdraw money tax-free. Your golden years may be decades away, but planning for them begins now.
5. Improve your “stuff.” No, not your TV or wardrobe. Think of the “stuff” that sustains your life and could actually improve it. What about the resale value of your home? Would an updated kitchen help you in the real estate market down the road? What about your car? Are you spending an arm and a leg commuting to work each week? Why not invest in an efficient model to save money and help the planet? Cost-cutting doesn’t always mean cutting back. Use your tax return to make lasting changes in your lifestyle. The opportunity is there—make sure you take it.
The task of credit repair is an admirable one, but your efforts can backfire without the proper guidance. What may seem like a sound decision could actually hurt your credit score in the process. Fix credit mistakes and avoid new ones by thinking twice about:
• Debt consolidation. Drowning in debt is overwhelming, and debt consolidation may seem like an easy fix. After all, why deal with three credit card balances when you can transfer all your debt onto one? You may even choose to take out a personal loan to cover the expenses. While these may appear to be valid credit repair efforts, debt consolidation can come with many drawbacks, including:
continue reading “Common Credit Repair Mistakes (and How to Avoid Them)” »
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