We are living in uncertain times and facing challenges like never before. That’s why we have to make adjustments to our financial picture in order to weather the storm.
Here are few tips to protect and save your finances
The first step is to take a really good look at your finances. Open those statements that come in the mail and get honest with yourself. If you have credit card debt, it’s best to tackle it head on. Having large amounts of debt can keep you in bondage. Credit card companies prey on innocent people to keep their companies afloat. They make lots of money by charging outrageous amounts of finance charges to your bill every month sometimes as high as 32%, and as the interest rises so does the amount owed.
How can you develop a credit card repayment plan?
We have to work with the credit card company. Call them and ask them to reduce the interest rate. If you are a good customer that have been paying on time every month you might be able to persuade them. If they say yes, great. If they say no reduce or stop if you can using that card altogether. If you have more than 1 card pay the highest interest first. Make a promise to only buy what you can afford. I know it can be tempting to use the card but say no if you have it. Stop carrying it with you!
What you have to keep in mind is that late and missed payments can negatively affect your FICO or credit score. This score is so important. It can give you a better interest rate if you are purchasing a home. Employers and rental agents look at this score and this can ultimately determine if you get it or not.
FICO (Fair Isaac Corporation)scores range from 300 – 850. The higher the score the better. Remember, look at all your options. If you feel overwhelmed by your situation and there is no other way out you can look into getting a credit counselor such as Creditguard. They will work with you based on your income every month. You will have to give them access to pay your bill every month from your bank account. They will send you a statement so you can check to make sure your creditor is paid.
Repaying student loans: Student loans can help get you through college. After graduating or dropping out from college, students are given a six month grace period before they have to start repaying their student loan bill. Student loans can also negatively affect your FICO score if you are late or you miss a payment.
To pay off your student loan follow these steps
- Make up a budget. A budget will keep you on track as to where your money is going.
- Pay your bill on time.
- Pay more than the minimum. That’s how you tackle it. If you pay only the minimum it will take years to get rid of. Just think how much money you would have saved.
- You want to also look at the interest rate and pay the highest one first if you have multiple loans.
- Look for ways to make extra money to repay your debt. Go through your closet and find some stuff that you don’t need anymore. List them on Ebay, thredup.
- Put any tax refund or raise you receive towards your debt.
Part of the overall objective to save and protect your finances is building an emergency savings plan. An emergency plan is money that is set aside for unexpected expenses. You should have six months of your paycheck put away where you can’t touch it. Emergencies can happen at any time and it’s usually something totally unexpected, but if you have an emergency plan in place, you can feel more in control of whatever events come your way.
Emergency plans you can start: Let’s face it interest rates are extremely low. These investment savings can help you save for that rainy day.
American express savings: No minimum to start. 0.80APY. Set up a bank transfer and add to your account every month
www.americanexpress.com › personal savings
Discover savings: No monthly requirements 0.80APY a great way to build every month
www.discover.com/online-banking/savings-account
Always do your homework. The most important thing to remember during these uncertain times is never give up!