Healthy Habits For Staying Out Of Debt
Just like eating healthy keeps your body working well, keeping good credit habits gives you a good credit score.
This maybe difficult for you to do at first but there is plenty of time and a few key practices that will go along way over time.
Most people think that when they “save” it has to be towards a specific goal in mind, like going on vacation, or for a new car, or moving out into a new apartment or a shopping spree but actually saving should be along-term goal.
Think of your savings as your ultimate “plan B.” If ever you were to get sick, or lose your job, etc. and you needed a lot of money fast, this is the account you would turn to. The best part of the plan is that it’s money you’ve earned and you can use it whenever you need it.
Putting a little money away every month is the surest way to make your savings account grow and your financial struggles decrease as you will always have a second reliable source of income in emergency situations.
I know it can be hard to stick to a budget sometimes but it is a simple way to keep a good credit score.
Maxing out your credit cards is always a bad idea as you will have to pay for them in the end and it will cost more. If you just stay on a strict budget you will learn to be an efficient spender and create better shopping habits, as well.
For example, you want to get a new outfit for a dinner party on Friday night. You know that you “want” a completely new outfit but don’t necessarily need one. Instead of trying to go for the whole-nine-yards, try to just pick up some key pieces while at the mall or department store that will go well with pieces already in your wardrobe.
In the end, not only will you be possibly saving yourself the headache of shopping all day and being stuck in long lines, but you will certainly save money. Not to mention, it might be easier for you to pay off your monthly credit bill which in continue to keep you in good standing with your creditors.
Quality Over Quantity.
Are you one of those people that owns a dozen or more credit cards? That is not a good sign. Having too many credit cards is a very bad decision and can lead to financial crisis.
You shouldn’t be signing up for every credit card under the sun just because it sounds good. All credit card applications have a fine print and you should read it carefully before signing up.
Always remember that you have a choice whether you want to have a credit card or not, and you should never feel pressure to take it because you can.
This might be an unusual request but selling items on eBay or Amazon and even Craigslist can be a pretty lucrative endeavor. A few items could make you a good amount of cash toward any outstanding debts you already owe without having to live on a tight budget.
This may be difficult at first but as you start to see the financial advantage of selling your items, it will become easier to part with them. Remember all the money you make from these items will go towards your bills and reducing your debt without having to sacrifice a chunk of your paycheck every two weeks.
Look at this as another form of income without having to go get a second job which can be very time consuming and hard to balance with your first job.
Being financially empowered is important to keeping a healthy credit score. Knowing your responsibilities and options as a credit card holder is vital to not falling into debt and owing more money than you can afford.
Keep in mind that the best defense is a good offense. It’s okay to have lines of credit through your car, home and some credit cards but too many could be disastrous.
Not all credit cards are good and not all credit scores are good either. With these simple habits you will become a better card holder and consumer.