Credit repair requires a discerning mind and a plethora of patience. While your financial well-being relies on what you do, sometimes what you don’t do is just as important. Read on to discover the “sins” of credit repair and the destructive properties they carry.
You may be drawn to a certain lifestyle, but how you live should depend on the resources within your grasp. If you are currently living outside your means, the need for credit repair is practically inevitable. Relying on credit cards and borrowed items to sustain the illusion will only make things worse, contributing to credit score damage and hardship. Turn your lust for advancement into a goal. Practice conservative spending today to build toward a better life tomorrow. Success rarely occurs overnight.
An overabundance of anything can be harmful, whether it’s debt or ice cream. A spendthrift mindset is the key to financial instability, threatening your budgeting, savings, and overall future. Are you prone to expensive dinners out or weekly shopping sprees? If a new car hits the showroom floor, are you the first person in line for a test drive? Ask yourself why you are motivated to overspend and look at the big picture. You’ll find that moderation makes for a healthier lifestyle.
Bad credit is a dangerous byproduct of insatiability. The little voice that says “more, more, more” can threaten even the wealthiest consumer. If you are rarely satisfied with the status quo, the need upgrade your existing “stuff” is a likely priority. Consider the drawbacks of this practice, however. While you may be able to afford it, what opportunities do you risk? Money spent is money lost when it comes to investments and savings. Rather than spending $20,000 on yet another home renovation, why not use that cash to further your portfolio? A respectable return of eight percent would yield a $23,000 profit after 10 years. Don’t waste your cash on frivolous and temporary items. Keep your credit score safe by improve your long-term stability.
Also known as “lazy” in modern terms, sloth can slowly cause you to need credit repair over time. A lack of budgeting leads to reckless spending, maxed out credit cards, and late fees. Take the time to allocate your funds and track your spending properly. Organization is essential.
Emotion is the culprit of impulsive behavior. In the world of personal finance, this trait is often the culprit of poor credit as well. Using “mad money” to temper a bad day or to ease stress is never the answer.
Sure, your neighbor owns the latest and greatest stuff, but can you afford it too? Envy is a common motivator for unadvised spending, especially when “keeping up with the Joneses” is a concern. Don’t be fooled by appearances, however. The average Jones has a mountain of debt to accompany their lifestyle, likely stemming from their own struggles with envy. Avoid the green monster by appreciating what you can afford. A debt-free lifestyle is nothing to be ashamed of.
Bad credit does not make you a bad person. In fact, the average consumer has a credit score of 692, hardly stellar on a scale of 850. Although your credit may not be perfect, avoiding help will only make it worse. Set aside your prideful inclinations and ask for help from a qualified professional. Self-preservation is not a creditworthy commodity.