Hello World! Welcome Friends! Life isn’t always easy. There will be difficult times that come along. It may be a costly home or auto repair or a sudden illness. To compound the problem, these urgent matters often come when you are unprepared. Without savings, you end up living paycheck to paycheck and ultimately with a bad credit score.
Securing a Loan
When you have a poor credit score, finding the money necessary to pay for an unexpected expense can put your life in turmoil and cause excessive amounts of stress. Traditional banks will not provide a loan and your family may not be in a position to loan money. The good news is that there are alternative payday loans available even if you have bad credit.
Cutting Corners
Less than perfect credit may cause you to cut corners when it comes to buying a home to save money. For instance, a home inspection is not a requirement for purchasing a home in all states. When looking for ways to get into a house for less, many people avoid this expense. This is a huge mistake that can have long-term financial woes attached. A home inspection reveals things such as the condition of the foundation, whether you have pests or termites, and the condition of a roof, plumbing, and major appliances.
Limited Opportunities
When you have good credit you gain access to the lowest interest rates on a home, auto, personal loans, and credit cards. Over the course of a loan, this can add up to thousands in savings. When your credit is classified as bad, offers for credit lines are few and costly. Additionally, if you want to rent an apartment some will turn you away or require a higher security deposit. You’ll also need to come up with deposits for your utilities including the gas, electricity, and water, in order to have the services. Today, cell phone companies and insurance companies also deny services to those with less than desirable credit.
Restoring Your Credit
Whether fair or not, your credit score affects your daily life. This is why it’s essential to work towards restoring your credit to a good status. Unfortunately, it only takes a few missed payments for your credit score to plummet and it can take years to return your credit score back to its original number.
Paying Down Debt
Thankfully, you can improve your credit score. Paying your bills on time going forward will slowly build better credit. You’ll also need to address bad debt. If you were unable to pay a few of your credit cards for several months, they are having a negative impact on your credit score. Try reaching out to each one to see what you can do to return to your current status. Some offer a hardship program based on your situation. Other companies may give you a fresh start requiring just one payment to show good faith.
Going Forward
In order to prevent falling into the same situation a second time around, it’s necessary to have an emergency fund with a few thousand dollars. This will take the stress out of an unexpected expense by having the funds available and eliminating the need for borrowing from your money designated for paying bills.
One of the reasons people get into trouble with their finances is that they get into debt beyond what they can afford to cover. It’s not something done in a conscious state. It’s more likely an accumulation of debt due to needs and ability. In the future, it’s important to remain below what you can afford. This may when life throws a curve ball, you can continue to enjoy a comfortable lifestyle.
Click the links below for any posts you have missed:
How to Protect Yourself from Home Invasion
Should you Install Solar Panels
One Room Challenge: Teen Bedroom – Week Four
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Thanks for stopping by! Have a wonderful day/night depending on where you are in the world! Go with God and remember to be kind to one another!
Toodles,
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