When you’re in college or have recently moved out, you will find that you tend to blow your money on food and entertainment much faster without even realizing it. You will quickly slide into debt if you do this.
If you bought a defective item, chances are you will notice it within a few weeks only. The only one who benefits from an extended warranty is the warranty company, not you.
Creditors like to see borrowers manage more than one credit account; it is important, however, to keep this number under four. If you use one card, it could take longer to build your good credit score. Using four or more cards could indicated that you aren’t efficient at managing your finances. This is why you need to begin having two cards. Once you have built up your credit score, you can begin to add one or two new ones.
If you’re currently married, make sure that the spouse that has the best credit is the one that applies for loans. Those with bad credit should build their score with credit cards that can be paid off easily. Once both of you have good credit scores, you can jointly apply for loans that evenly share your debt.
Carry a small envelope with you wherever you go. Tuck receipts and any cards you pick up from businesses you like into the envelope. Keep them around so that you have a paper trail. Although, the chance is small that you’ll be double charged, having the receipts will make it easier to see on your credit card statement.
Be sure to remember to file your taxes on time. For a faster refund, file as early as possible. If you owe the government money, file as close to the deadline as possible.
Your car and house are likely to be the biggest purchases you will make. It is important to set a large portion of cash aside for these expenses. Add more money to the payment every month or make an extra payment once a year to pay it down faster.
Make a shopping list in tandem with your monthly budget so that you won’t end up going deeper and deeper into debt. These tools can help you live within your means. Keep these tips in mind in order to stay in the clear and be debt free!