For many Americans, adding more resources to their savings accounts each month is a major struggle, as many find their paychecks going toward past debt payments.
According to recent research, Americans are now saving three times as much as they did between 2007 and 2009. The average citizen sets aside 5.3 percent of their disposable income each month.
However, many consumers may be denying themselves added savings simply by not repairing their credit now. Individuals who do not set up a plan to pay off their debt may be putting their finances at risk.
Consumers can increase their long-term savings by taking steps to repair bad credit. By analyzing a copy of their credit report, and noting errors and questionable information, individuals can lower their rates on insurance, credit cards and loans.
However, consumers may want to contact a credit repair company, as these organizations can help ease the burden of a lengthy credit dispute. Even a small change in a FICO score can mean a big interest rate reduction. Individuals may choose to deposit the money they didn't spend on interest charges into a savings account, which may help them secure a sound financial future.