Have you ever had one of those months when life flips you the bird and seems like everything is going wrong?
Your good credit score turns to a bad credit score…
Your boss is a pain and didn’t give you your bonus, your car decided that it wanted to go into the shop for repairs that aren’t covered under the warranty and you wind up falling off a ladder when you’re cleaning your gutters and have to go to the hospital. Thankfully, you only have a broken foot, but how much did those x-rays set you back?
Yup, a crappy month to be sure.
This is about the time that you start thinking your credit cards will have to wait because you need to get your car repairs paid for or you can’t get to work. When this kind of bad luck happens you might find that it’s really tough to pay your regular bills on time and your credit score and financial situation seems to be unsteady.
Life isn’t always rosy, but you can take some steps to get back on track – even if you don’t have any savings or cushion!
That’s right, even if you don’t have the recommended “emergency fund”, you can still get out of your tough financial situation without being hurt too badly.
Right about now, you might be one of the many that are feeling badly about life. It might feel as if you’re going to be stuck in tough financial straits forever and you’re all alone in your situation right now but you need to know that you’re not alone. In fact, some of the wealthiest people in the world have suffered financial problems!!!
A few simple steps can turn around a awful credit score and get you out of a tough situation.
Many people ask “is ___ a good credit score or bad score?” (Frankly, it doesn’t matter, because there are always ways to improve your credit score)
You can improve your credit score, but you have to know how to turn things around so life stops flipping you the bird.
#1: First things first: call your creditors as soon as you realize you might have a problem. As soon as your car takes a crap on you – call your creditors. Why? You might have the option of “skipping” a month of payment as long as you’re in good standing with your creditors. Same thing goes for loans such as your mortgage and car loan. Yes this really is possible and I have helped out hundreds of people do this.
The downfall is that you’ll wind up paying interest on your credit card balances, but in the end, it can help keep your payments from being late and keep your credit score intact.
#2: Got an empty credit card with no balance and a low interest rate? Save yourself some agony and put the cost of your “emergency” on the card with the low balance and make a plan to pay off the debt as soon as you can. Just make sure you have a sound plan to payoff the card.
The plus: making timely payments on your credit cards is always a good thing for your credit report, so this isn’t a bad way to go as long as you are able to bring the balance down quickly and easily. (Try to keep your balance at about 30% of your credit limit. This is called credit utilization and it’s about 1/3 of your credit score)
#3: Take a look at your credit report and score. Many people ask me “Does checking my credit hurt my credit scores?” and the answer is no. When you check your scores it has no impact. You should always be examining your credit report and scores.
But what if you’ve got a long term situation on your hands?
So maybe you’re facing a longer term financial situation. Lots of people are going through this, too. The sudden shock of unemployment and finances in crisis can really sting. You can help to fix this and keep your credit score in good shape too – which means that you don’t have to file bankruptcy!
No, I’m not lying. Just because life flipped you the bird doesn’t mean you have to be a victim of the ups and downs that go with living.
Here are a few credit repair tips to help you keep paying your bills on time and avoiding a poor credit score in tough times:
- Cut down on your bills for a while by going out to dinner once a month instead of once a week. Savings: Up to $300 monthly. Added benefit: you don’t run up your credit card balance as much as you were before, so less interest and fees.
- You know your premium cable package? Do away with it for a while and go back to basic if you have to. Savings: Depending on your package, up to $100 monthly. Make it livable by checking out some sites online where you can watch your favorite shows and movies for free or a low fee.
- Shop sales for everything from clothing to groceries and pay cash for them so you can avoid paying interest when you charge them.
- Get rid of the soda, coffee and other regular drinks that can cost you an extra $100 a month.
- Do you smoke? You already know how bad it is, why not quit to save money too. Next thing you know, you have an extra $100 a month!
The bottom line is that you can keep your credit score safe and get out of your financial problems without having to sink further into debt or borrow money. Don’t let the ups and downs of your life turn your finances upside down.
Damaged credit scores are easier to fix then most people realize.
Keep yourself in good financial shape no matter what your life is doing to you and you’ll come out on top no matter what.
Either way, keep your head up. Every day above ground is a good day!