The average consumer uses between 4-8 credit cards while the average fast payroll advance customer will use 5-8 short-term loans each year. These small loans add up fast if not paid off on time, but their overuse will eat away at a person’s income. A single person averages$15,000 stemming from credit card debt with affordable minimum payments yet keeping the majority of the balance for long periods of time. Both debts are burdensome to people who live paycheck to paycheck. Once credit dips into the sub-prime credit category, a person will struggle to get out. The budget will have to be put into plain view in order to begin looking for relief.
In order to strengthen future finances, current finances must be kept real. What does real look like? A real financial mindset will not focus on using third party money but instead situate finances for self-sufficiency. It’s is what a healthy budget does! Do you really want to stay in debt and slowly pay down this debt or should you pay it off fast like payroll advance loan lenders expect to see happen? The creditors would hope that people keep paying small bits every month, but it does not fit into the bigger financial picture. Short-term loans expect fast payments. People complain about not affording the fast payoff, but it is ideally the way to keep debt out of your financial portfolio.
Each credit bureau provides one free report every 12 months. If you stagger each one throughout the year you will be able to sustain continuous supervision of what is being reported onto your credit history. Use this checklist to check your credit report for errors or mistakes which could reflect poorly on your credit score.
*Check for spelling and numeric errors. If your name or the street you live on is misspelled, it could create problems. Wrong street numbers are bad, but critical numbers which must be correct are birthdays and Social Security numbers.
*Make sure each the debt listed is yours. Go through the creditor’s reports. Check the dates of when delinquent debt was reported and make sure it combinationes your documents. Look closely for any fraudulent posts in your name that do not belong to you. If you didn’t create the debt, you may have been subject to identity theft. Call the creditor immediately.
*Check dates. Look at the dates carefully, if the negative reports are older than seven years, you can call the creditor and ask them to remove it. Most debt will disappear after 7 years.
The ultimate control over personal finances is yours, if you don’t watch over your finances, then who will?
Be aware of the full picture of debt and plan your budget accordingly. If you carry the attitude of it will all turn out okay in the end, you may be in for a long rough financial road. The best time to start making improvements is now. Examine the debt and prioritize the more expensive (high interest) debt to for a quick full payment. Lower the balance to reach levels less than 30% of the card’s credit limit. Credit utilization rates will improve showing signs in a raised credit rate. When finances and income are balanced, there will be less reliance on a payroll advance loan company and credit card fast cash.
