Are you tired of feeling maxed out, stressed out, and ready to blow when it comes to your money? Well here are 10 ways that you can get back on track:
- If you have more than one credit card, move the balances from those with higher interest rates to those that have lower interest rates.
- Live below your means. Don’t try to keep up with the “Joneses”. We really don’t need all of those toys.
- Don’t waste your money. Examine the things that you spend money on. Are you getting the best value for you buck? Think about your cable TV. Are you spending money on a 200 channel package that you never get time to watch? Or are you paying for minutes on your cell phone that you don’t use? Don’t get complacent. Examine where you money is going and see if there are areas that you can make changes.
- Consolidate. Go to a government approved credit counseling company and see if you can bundle your debt at a lower interest rate. This will better facilitate you paying it off quicker.
- Don’t get department store credit cards. They often have the highest interest rate and they can’t be used anywhere else other than that store.
- Don’t open too many credit accounts at once. If you do so, you can affect your credit rating negatively. You shouldn’t open a new account any more often than every 18 months or so.
- Don’t max out your balances. Creditors look at something called “credit utilization”. This is where they track how much of your allowed credit you use. The less you use, the better your credit score.
- Don’t close old credit cards or accounts. Even if you have paid them off, leave them on your record. This helps your credit rating by showing that you have received credit prior and payed it off responsibly.
- Don’t use your house as colaterol. Too many people in the last couple years have relied on home equity to supply them money they need to pay off debt. This has only made things worse. No matter how tight you are, don’t start taking money out of your house.
- Negotiate with credit card companies. Phone them up and ask for a better interest rate. If you have a better rate from another company, tell them about it. Chances are they want to keep their customer and will give it to you.
Remember, it’s all about baby steps. No one is able to make huge changes all at once. Habits take time to break and they take time to make. Use these tips in whatever order and quantity you want to start. They will be a step in the right direction to getting you debt free and maxing out your money.