If your car blows up next week, do you have enough money to get back on the road without using a credit card? If you lost your job tomorrow, do you know how you’ll pay for your bills next month?
Money Magazine says that 78 percent of us will have a major negative event happen in any given 10-year period of time. Just 38 percent of Americans said they could cover an unexpected emergency room visit or even a $500 car repair with cash on hand in a checking or savings account, according to Bankrate, which commissioned the study. When I take a quick look at my life, I have lost my job twice in the past two years. The first time I lost my job, we weren’t even close to being prepared. We had just purchased a home and used up all of our savings account for the down payment. We had to turn quickly to using our credit cards to make ends meet. We had been debt free for nearly a year when it happened and we saw our credit card debt jump quickly up to more than $3,000.
In 2010, my wife April and I were newly married and had a large amount of bad debt, mostly mine. We were making our minimum monthly payments, but it just didn’t seem like we were getting anywhere. We started paying just a little more than our minimum payments on our credit cards and our student loans, but it still didn’t seem like we were making a dent. Just like everyone else, we knew that we wanted to buy a home in the near future. However, to do that we needed to get our debt to income ratio under control. Unfortunately, what we were doing wasn’t doing it fast enough.
We decided to take a different approach and the formula we used accelerated our process in paying off our debt. I can tell you that if you follow these steps, you will find the same success as we did and be out of debt much quicker than you would expect. The key here is that you must stick to the formula.
Today, young people while still in school are actively solicited by credit card companies, which have often caused me to ask, Why don’t we teach our young people about money in school? Why do we have to wait till young people are deeply in credit card debt and in debt due to school loans before we realize that there is a problem?
There is good credit and bad credit in the world that we live in. One lesson that is important to learn is to know how to minimize bad credit and responsibly use good credit to our advantage. Having good credit can mean the difference between getting a loan or not.
What if you didn’t learn the lesson on minimizing your bad credit? Do you need to work with a credit repair company? Or is it possible to repair your own credit? I can tell you that it is possible to repair your own credit and save money while doing so. During this process people (especially couples) become overwhelmed. My goal is to give you 7 strategies that you can use now to begin repairing your credit.
Welcome to my new blog. My name is Kevin Anderson and my goal is to help people repair, build and protect their credit. If you need to repair, build or protect your credit, then this blog is for you. We will also discuss some tips on how to set up a budget and ways to get out of debt quickly.
I plan to post once a week on Wednesdays, but the first being Friday, December 18th. I don’t intend this to be a monologue but a dialogue. I want you to give me your feedback in the comments section. I will read ever comment and respond as I am able.
If you have a topic you would like for me to address, please leave a comment below. I am looking forward to connecting with you.