Taking control of your personal finances is a must if you want to save more, invest, buy a new vehicle or home, take a vacation, or simply improve your budgeting and cut expenses. Grabbing hold of your finances firmly is also an excellent way to improve your credit, which is often a topic of concern for many people. The sad truth is that it doesn’t take much to damage your credit – a couple of delinquent payments and a few credit card applications can send your credit score plummeting. It doesn’t take long to see your credit score drop to the 700s or even the 600s, but it can be awfully hard to get it back up into the 700s. So what can you to improve your finances, and in turn your credit score. Here are five essential tips.
- Make a budget, and stick to it. Whether it’s a weekly or a monthly budget, use a spreadsheet or some type of money manager software to list all of your expenses, and a place to note when they’ve been paid. Make sure you include allowance for you and other family members – this way everyone has a pre-set amount of “pocket money” for free spending, but the budget is not affected by it.
- Put aside savings. Make an effort to save, even if you put aside only few dollars a week. Whether you commit to putting a flat percentage of your paycheck into savings or you follow the popular money challenges on the internet, work on being persistent in tucking away money. After a couple of months you will be able to put together small emergency fund and after a year or two you’ll have accumulated significant chunk of change for a rainy day.
- Pay down debt. Make a list of your current debts. Start with the biggest one and then work your way down. Make it a priority to pay down at least portion of your debt every month before spending your paycheck on other items. You can improve your financial situation by slowly paying down debt every month.
- Consolidate all debts. Consolidate debts to reduce interest rates, eliminate the possibility of late payments and late fees, which tend to negatively impact your credit report. Consolidating debt will also make it easier to make monthly payments.
- Get professional financial help. Sometimes you just can’t go it alone. The services of a professional credit repair company like lexingtonlawreveiws.com can help you achieve your financial goal. They have the manpower and resources necessary to persistently follow up on your credit report and help you improve your score. They can also set you up with financial counseling, which is often essential for many consumers to get a grip on their finances and change their spending habits for good.
