Minggu, 07 April 2013

Avoid bad credit and keep your finances in good shape

Credit acquisition is not a bad thing, as you know how to handle the debt and repayment. In this post, let’s discuss some tips on how to manage three important aspects of debt more effectively.

Home Loan Management

The monthly payment on the loan even just once can get you into trouble. Some lenders immediately send a notice of foreclosure if you fall behind for two consecutive months. So, rather than wait until you missed the second or third month of payment, your best bet is to contact your mortgage lender. Don’t wait until a notice of debt collection.

If you can keep it up with monthly loan payments due to your current financial situation, you should discuss the situation with the lender. You just lost a job? Or someone in the family is sick? Whatever the reason for struggling with debt payments, you should never ignore expiration dates or wait until your lender you contact on last two debts.

Many lenders are willing to change the initial conditions of the mortgage home to help a borrower experiencing financial crises. For example, your lender may decide to reduce the rate of monthly loan or extend the period of repayment to lower monthly expenses. The sooner you can talk to your lender about the problem before we can find a solution.

Managing credit card debt

If you have more than one credit card, it is very important to pay attention to your expenses. The credit card holders can save a great deal of money if you can avoid allegations of monthly interest rate. The secret is paying monthly balances in full, instead of keeping a revolving balance.

Before you upload anything on your credit card, ask yourself, “will I be able to pay the full amount before the deadline?” If you are in doubt whether you can pay full or not, it is best not to use your credit card and simply use cash.

Another important step is to check your monthly statement before posting your payment. You may experience errors and if you don’t take the time to review your Bill, you may end up paying for expenses that you don’t have to. In case you discover erroneous charges on your credit card invoice, call your issuer immediately to dispute the charges.

Managing your personal finances

Do you have a precise plan for the month? If you do not follow a financial plan, you should begin to create one. Make a list of all charges for the entire month and compare the total amount to your monthly earnings. Are spending more than what you earn?

Based on the list, it will be much easier to see your spending pattern. You might need to make some adjustments or modifications with your charge, but doing so can save you from the trouble and pain that may bring the bad credit.

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