Before I begin, I hope you understand how important credit is. It is one of those things that can separate the poor from the rich.
I know so many people that make lots of money, some make more money than I do, yet they live like poor people. You would be amazed at how they live there life, pay check to pay check and they are always broke. Then the worst part is that they do not believe that I make less money than they do. Some of them will even sit around full of envy and for no reason. If you are one of these people, or if you know someone that fits into this category there is a way that almost everybody can do to fix their credit. But in order to do this, they have to be willing to change a few things in their lives. For starters they need to stop showing off. I know that this is not the case with all poor people, but over 75% of poor people that live pay check to pay check, actually are not poor. They may live in a rented house, and have more bills then there are days in the month, but if you were to look at their income or wages, you would be surprised. Now as for the other 25 percent, even if you do not have a job and you are knee deep in debt, you too can recover from this debt even if you find just one low paying job.
So what are the poor and debt filled people doing wrong? For one thing, they are paying too much for what they buy. I have noticed that there is an attitude amongst many less fortunate people that still think that if you buy something that does not have a name brand, it is no good. That is so far from the truth. While there are some companies that make no frills products which are of less quality. There are also some name brand companies that make products with a no frills label. Yes this is true. You can often save up to 50% on a super market brand product that is actually the exact same product as the name brand next to it. Take for example Spaghetti, Did you know that some name brand products like Ronzoni and Muellers, actually have agreements to produce the same product in two different boxes. One has the name brand label and the other one has the supermarket’s name on it. So the product is the exact same, yet the box looks a little bit different and so is the price. So why do they do this? They know that a certain percentage of consumers are thick headed and they will never believe that the products are the same, so they still will buy the more expensive ones. So how can you tell which is which? Well you can look it up on the internet. You can also learn this by working for one of these supermarkets or you can learn about this in College when you take a basic economics class.
People not only pay more for consumable products that they buy at stores, they also tend to pay more for things like insurance, bank account fees, car loans and even utility costs. Now in this case you may need to have a better credit score. I can help you to do that and it I have even written my own e-book on how you can establish, repair and improve your credit score in a short period of time.
You can download it from my other website: http://www.nobodytosomebody.com
Once you have improved your credit score, you need to go back to your bank and refinance your car loans or credit cards.
You also need to switch away form the smaller insurance companies and find some insurance with a big nationwide company like Progressive, GEICO, Allstate, State Farm etc. The big company will actually give you a lower price on your car insurance, but they probably will not do that until you have a better credit score.
If you have credit cards, or other smaller loans, you need to check your mail for lots of offers to transfer your balances to some new cards that have low or 0 percent finance rates, even if it is for only 6 or 12 month. Once again you can only get this if you have a good credit score. And now if you do this, it is very important that you not only transfer your complete balances, but also that you tear up the old cards and do not use them again! Too many people make that mistake, so please be aware of that! This is called smart debt consolidation.
In the future, perhaps when you are able to own your own home you can take advantage of a home equity line of credit to pay off everything, but you better get rid of all of those cards too. You can still keep one or two for emergencies, but learn how not to ever use them to pay for things that you will not keep. A good example is: a meal at a restaurant. You may keep it in your stomach for a few hours, but after that it is gone. If you just beginning to have good credit do not do this. If you are a disciplined person you can do this, but only if you are certain that you already have the money in the bank to pay the bill back right away. I know some people that do this including myself, but we only do this to earn travel points and or to keep track of business expenses. But please be very careful with how you use your credit cards.
As time passes, little by little you will learn that to become rich is not all about making more money. It is all about learning all of the ways to shop wisely and save money on all of your bills and purchases. Get out of debt, and learn how to enjoy a wealthy life.
