Credit Priorities : On Shaky Ground, You Need To Know
Your Priorities
to Save Your Fico Score
Unfortunately some of us come to the point where we just can’t
pay all our bills. We may have unforeseen problems like a serious illness
or job loss. In such times, it’s important to know your credit priorities.
#1—Don’t ever pay the mortgage late. This is your first priority.
Missing a mortgage payment is a huge negative swipe on your credit. It
will impact you worse than missing other revolving and credit card accounts.
Additionally, a mortgage is the biggest reason to keep a good credit score.
You don’t want to make the mortgage people wary of you.
#2—Make a payment on everything (if possible). If you almost have
enough money to pay all your bills, but are coming up a little short pay
everyone something even if it’s not the full amount. Make sure you
contact the companies to let them know you are making a partial payment.
Most companies will work with you on this. Deadbeat customers have two
characteristics A- they ignore those they owe money and B – they
pay nothing. By communicating with your creditor and sending them something
you are showing that you are a good customer with a temporary cash problem
which is something most people will work with.
#3—Increase your income. We all need a certain amount of money
to live on. Cutting expenses is not very realistic. We have to pay for
our home/rent and our car/insurance and a lot of other things that aren’t
that easy to quickly change. It is more realistic for most people to increase
their incomes. It may be in the form of a second job or job promotion.
If you track your spending you will notice small improvements make a big
difference. Many people are on a ship that is slowly sinking. Most of
them can change their scenario to a ship that is rising if they track
expenditures and do what they can to bring in extra money.
#4—Check your food budget. Most expenses can’t be changed.
However, a lot of people waste a lot of money in their food budget. For
example, a family of four can eat on $160.00 per month, but most families
of four spend around $500.00 per month on food. If you are in a tight
squeeze, stop eating out and cook homemade meals of inexpensive foods.
The inexpensive foods are actually healthier for you.
#5—Read about credit strategies on this website.
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