Break Out of Debt and Settle Your Finances

This article is to help you find a way to simplify your system to pay down your debt and let your money do its thing.

Winter is a season in which things begin to build, whether its dust, grime, or your monthly budget expenses. It may appear that repainting your kitchen is more entertaining than looking at your finances, you will be happier in the end you chose to look at your finances. Here’s how to get started.

 

  • Take advantage of a free credit report

It’s never a bad time to take your free credit report to learn where you stand. Whether you know you have a few marks, or whether you know it is perfect.

Under the Fair Credit Reporting Act, all three major credit reporting companies (Experian, TransUnion, and Equifax) have to give you one free credit report each year, but only when requested. This will not state your credit score, but will show you a glimpse of what a lender will see when they look at your profile. They can see delinquent accounts, bankruptcy filings, lines of credit, and your payment history. 

These credit agencies get their reports on you from different places, so not all reports will be the same. Review each one thoroughly so all the information is correct. If there is a problem, follow the guidelines for a proper appeal.

  • Eliminate unnecessary expenses

Did you sign up for a magazine subscription a few years ago and put the magazines out for decoration only? Do you pay for cable but only watch it once a month?

Budgets can become inflated through time when we become accustomed to spending in unnecessary places. Check your monthly spending report for these invisible money pits, and start cutting accordingly.

When was the last time you looked at your car insurance rates? If you sniff around a bit, you could maybe find a comparative rate and drop $50 a month, which is $600 a year!

Look at your cell phone bills, cable, insurance, and if they won’t budge, maybe you should jump ship. Be aware if they try up-selling you with extra features instead of dropping the bottom price, this isn’t helping you.

  • Find a way to simplify your budget

Dealing with your finances on a regular basis can be a headache when there’s a social life, work, family, and a household to maintain. It is necessary though. This is why quick, routine check-ins can be a life saver.

Once all unnecessary spending is eliminated, your budget should be much clearer. A percentage of your paycheck should be automatically deposited into your savings account, and from there every bill that is fixed should be on auto-pay.

 

These are some quick ways fix your finances, so hope that helped, and best of luck!

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