Credit Strategies : Going Bust Is Not An Option
Are you out of money and time. You may need credit strategies to help
you manage your situation. Most of us lose our credit slowly through a
series of poor choices or unforeseen events. When you realize your money
situation is very tight there are strategies to help you survive until
you make some extra money or dump some debt.
#1—Don’t just give up. When you stop paying people altogether
and avoiding them you are on the road to bad credit. When you decide to
stand up to the problem you are providing yourself with options. And,
most likely you can save your credit.
#2—Credit cards always send us balance transfer offers or offers
for new cards. If you are having a hard time you can always transfer your
credit card balance from one card to the other. Most credit card companies
send you access checks on a monthly basis. If you keep these, you can
send a check from one credit card to make a payment on another one. If
you have enough cards you can theoretically never pay any of them off.
You should only use this as a defensive play and you need to be very responsible
to keep track of offer date expirations and payment due dates. Credit
card companies are often very tricky so you should keep track of the offers
really well.
#3—Mortgage Refinance is another option. If you do a refinance
on your mortgage, you can get out of one payment. Even if the refinance
isn’t very beneficial, you still get to buy yourself some time.
If you are lucky, you get a better rate and a lower mortgage payment and
miss a payment.
#4—Payday Loans, car title loans, and furniture rental are terms
for loan shark. These guys are despicable. You have to remember it is
not illegal to take money from a sucker. If you have this type of loan,
pay it off by doing whatever it takes. This is not an option for managing
credit. These businesses should be avoided at all costs.
#5—Student loans can be deferred for hardship. If you have a problem
such as job loss or medical problems, call your student loan counselor
and explain the situation to them. They can defer your payments.
#6—Sell expensive high debt items. If you make $1000.00 per month
and drive a car with a $600.00 per month payment, you are headed right
into trouble. You need to sell your car even if you take a loss. Many
people unwittingly purchase items that are worth less than their loan.
Obviously, you should check to see what an item is worth before purchasing
it. If you get into trouble, admit it and take care of the problem. Many
people think, “Since I can’t sell this item for what it is
worth, I will just ruin my credit and future.” If you are responsible,
you will sell the item and pay back the difference between the selling
price and loan value. It will have the effect that you will never forget
to check the items value before purchasing.
#7—Add a roommate. Adding an additional person in your household
can decrease living costs and rental/housing cost. If you are in tight
bind, this may be just enough that you can make it.
#8—If you absolutely must default, do so on only one account. Don’t
spread your default across all accounts. The best accounts to keep are
those that have aged the longest and have the best payment history because
they are great for your credit score. You need options so see what the
account has to offer you. If it is dismal, and you must, default on the
least valuable account to you.
|
