Taking Control in 2016
Happy New Year! Is this the year you have decided to finally get control of your finances? Maybe you want to prepare for a move into a luxury condo here in the Jersey City/Hoboken area, but you’re not sure you can afford it even though you have an excellent income. There are steps you can take.
The first thing to do is to call a lender. Maybe you know someone personally, but any lender can tell you what you will need in order to be accepted for a mortgage loan. Then, when you actually begin the process there won’t be any unpleasant surprises.
While you’re checking, you can check your personal credit report once a year at AnnualCreditReport.com. Look it over, and if there is any inaccuracy, dispute it and get it clarified. Be aware that if you have any bills that are in a collection account, paying them off won’t remove them from your credit report. They will stay there for 7 years, regardless of payment.
Don’t be overwhelmed by magnitude. Set some small, weekly or monthly goals that are reasonable. Paying off a few smaller bills will free your time and your resources to tackle that one larger bill. Then, there are steps that can be taken to pay the larger bills down. Another strategy would be to pay the account with the highest interest rate first.
If you contact your creditors, you may discover that they have programs to help you pay your debt. You can also negotiate for lower rates. Some credit card companies will allow you to transfer your balance to another card with a lower rate (sometimes even zero, for a certain period of time).
In addition to using these strategies for reducing your debt, in order to keep your finances under control, there are a few habits you should begin to develop. For one thing, you should pay your bills on time. This will improve your score, even if you have debt. If you have trouble remembering, set your computer or your phone to remind you.
You should avoid applying for more credit without your lender’s approval. Some stores offer a discount on your first purchase if you use their credit card. Don’t do it. It may put another blip on your credit score.
In order to see just where your money is going, and how you may economize, many financial experts suggest that you pay cash for everything, at least for a while. Many people don’t think about the actual cost of even small purchases. They just whip out that little plastic card. Paying cash will ground you in reality. There are whole books written about how to control your finances. These are just a few tips.
How will you improve your situation in 2016?
Edward