It’s easy to fall into debt—especially if you are supporting a growing family. But just because you’re in debt now doesn’t mean you have to stay in debt. You are taking the first step to dig yourself out of debt by reading this Action Plan. Whether you’re in serious trouble or just want to pay down some bills, take the steps in this Action Plan to get going.
It’s hard to imagine functioning in modern life without a credit card. Renting a car, reserving a hotel room or shopping online would all be much more difficult without plastic. But credit cards can also get you into trouble. It is very easy to overspend and find yourself in an extraordinary amount of debt.
Your credit score is a three-digit number that can have a big impact on your finances. It tells creditors how likely you are to pay back the money you want to borrow. The lower your credit score, the riskier you appear to lenders, and the more you will likely pay for loans, credit cards and insurance premiums.
Your credit score, the three-digit number that follows you around for life, requires your supreme care. The amount you pay for credit and insurance premiums; and whether you are offered a job, approved to live in an apartment, or get utilities turned on in a new residence can be governed by your credit score.
Choosing a credit card is a very personal decision—the card that’s best for you might be very different from the best card for someone else. Avoid making a big mistake when choosing a credit card.
Before you can buy a house, you will need to shop for—and qualify for—a home loan. A mortgage will likely be the biggest amount you ever borrow, and could take 15 to 30 years to pay back. That makes shopping for the lowest interest rate and fees even more important.
People tend to spend a lot of time shopping around for a car, and very little time shopping for a car loan. Keep yourself in the driver’s seat when you walk into that showroom. Know how much car you can afford and shop for the best rates and terms available to you before the negotiations begin.
Committing time to improve your credit score, pay down debt and get on a financially stable track is important. However, your hard work can unravel if you become a victim of identity theft.