Your credit health isn't just about the here and now. The future of your credit health largely depends not only on how you manage the debts you have at the present time but also what kind of debt you incur in the future.
First things first: Do some investigating into your spending / charging habits. Review some of your recent bills and even some not-so recent bills, if you have access to them. Notice patterns of charging. Where were you? What did you charge? What was your reason for purchasing that item?
Second thing: Determine what were your "triggers" or impulsive purchases.
Tips for the Future of Your Credit Health
- Immediately opt out of regular e-mail advertisements from your favorite catalog store.
- Cancel your subscription to mail-order catalogs.
- Pump gas outside of the gas station/convenience station. If you do not go inside, you cannot be tempted by gourmet coffees, prepared foods, or anything else you might see and wish to purchase once inside the store. Make it a hard and fast rule that you will charge gas, from now on!
- Ask to pay up front or receive a bill in the mail for regular services such as newspaper delivery, health club charges, and magazine subscriptions. Allowing companies to retain your credit card number on file and giving them full renewing access in this manner makes it all too easy for you to miss additional charges, increased fees, among other charges that you may miss due to not reviewing these charges on a regular basis. If it is on paper in front of you, you will quickly notice unauthorized or new charges and can rectify the situation. Get into the habit of reviewing before renewing!
- Immediately implement a "waiting period" for purchases that are going to challenge your budget. From now on, tell yourself that there will be a 4-day waiting period prior to making any large purchases, and especially those that you intend to charge.
- If it requires dry cleaning, forget it - unless you absolutely must have it for work. On top of interest that you will pay for charging this item, you are also signing up for an additional regular expense - dry cleaning - if you purchase this item.
- Write to your credit card companies and tell them very simply that from now on, you only wish to receive the bill - - no more promotions included with the monthly bill.
- Don't charge your homeowner's insurance and annual real estate tax bills. Instead, create your own "escrow account" where you will pay the necessary monthly amounts for each into that account so that at the end of the year, you will have the funds necessary to pay for those items. If you cannot afford to do this, then you need to start being much more frugal with your funds, and no more unnecessary spending. No Exceptions!
Thursday, July 31, 2008
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