This post touches on several issues that plague people all over the world. The first is a no brainer: Credit card debt.
Credit card debt is something that gets so many people upside down that they can’t tell which way is up. It may seem like a good idea to buy this or that when you deserve it but you are spending money you don’t have. This can add up and before you know it you are neck deep in fees and balances that will take you years to pay off.
The first piece of advice I have for this situation is to stop buying things you don’t have money for. Cut back on things that are not necessary like too many minutes on your cell phone, cable TV or DSL if you don’t use the computer that much. Take this money and add it to your payment on your lowest balance. Once that has been paid off, take the extra money you added and your former payment and add them to your payment to your next lowest balance. Your balances will start dropping more suddenly than if you just stretched your money over multiple bills. Stay dedicated and you will find yourself out of debt faster than you realize.
Once your debts are paid off, take that money and save or invest and your income will grow.
The next situation I’d like to talk about is spending without saving. You may spend only money you have and not use your credit cards for it, but what peace of mind are you giving yourself for retirement? If you’re counting on your children to take care of you, then good luck with that. Take financial responsibility now and save your money. Pay the money it requires to get help with an investment portfolio and start allowing your money to grow.
The third situation I am going to touch on is identity theft. Most of you don’t even know what your current credit score is. It is your responsibility to find out what your credit report looks like. Identity theft is a huge problem all over the world and it doesn’t take your SSN to steal your life. Sometimes all it can take is your name and address.
Thieves will not only buy things in your name but they will get medical care in your name as well. Can you imagine going to the hospital and being told you have a horrible disease when in fact, you do not? Identity thieves will also commit crimes in your name. This could spell disaster for you for a long time. The first thing that most thieves will do is use your name to buy things, if that works and no red flag is raised, they will move on to bigger crimes.
Check your credit report, pay for it if you have to, and analyze it to pieces! There could be things on there that aren’t related to you at all. There could be a bill you paid off years ago that wasn’t taken off and is still affecting your credit rating.
There are simple ways to protect yourself that will leave you and your family grateful for a long time.