Time for a Financial Check-Up
Like medical problems, it’s best to detect and fix financial problems early, before they spiral out of control.
Study this list of common personal financial problems. If you can identify with any of the symptoms, it might be time to change your habits and improve your financial health.
Problem 1: Not planning
You’ve allowed your credit card debt to accumulate. You’ve left your
“savings sitting in lousy investments for years.” You “leave gaps in your retirement and insurance coverage.”
Cure: Stop procrastinating.
Problem 2: Overspending
Basically, you spend too much. You don’t same much (less than 5% of your after-tax income.)
Cure: Become thrifty.
Problem 3: Dependency on Consumer Credit
You carry a balance month-to-month on your credit card(s). You’ve purchased a car on credit.
Cure: Cut up those cards.
Problem 4: Delaying saving for retirement
You haven’t even thought about putting money aside for retirement.
Cure: (see problem 1)
Problem 5: Sucker for Sales Pitches
You are easily pressured into making financial decisions. You don’t take time to reflect or get a second opinion before investing.
Cure: Just say no to slick salespeople.
For more financial health problems to watch out for, check out the article at AllBusiness.
Really Simple Steps for Improving Your Credit
Is your credit rating low? Are you ready to start repairing the damage you’ve done?
Then follow these simple, logical steps:
1. Stop using your credit cards! That’s right: go cold turkey. You need to pay off the debt you’ve racked up without accruing any more. This first step might be painful if you’re very credit card-dependent, but it’s the only way you can start to improve your credit rating.
2. Cancel some of your credit cards! If you’ve got a large collection of them (say, over 10) then definitely get rid of some. That means cutting them up, canceling them in writing, and then badgering the credit card companies until you receive a written confirmation that each account has indeed been closed.
3. Pay your bills on time! Creditors aren’t impressed when your check arrives a week or two late. In fact, a late payment is often grounds for canceling any special offers you might have been benefiting from (like a low APR). If you have a problem paying bills on time, try scheduling automatic payments on-line.
Source: The Journal-Standard
Be Careful When Paying Off Debt
Unfortunately too many of us are in debt and have the phone ringing non-stop as creditors keep calling us. Sometimes however both on the phone, online or just through emails and television we have people saying that they can help you consolidate your debt.
While most companies really want to help you, some just want your money like any good scam artist. They will get you to send them lots of money and it may be a while before you even realize that none of your debts have been paid. You will be the one left holding the bag because the creditors will still be calling and still want their money. The same money that you handed over to the “debt consolidators”.
Try to choose a company that has been around for a while. Check with the Better Business Bureau to make sure that there aren’t any complaints against the company you have chosen and check to exactly what services they have to offer.
Student Debt and Lack of Teachers Connected?
More and more college students are graduating with large debts hanging over them. An average amount of debt was $20,000 a year ago but now many students are left with a $40,000 that a teaching job just can’t pay for.
Most students go into teaching, experts say, for the love of the job and not the paycheck. However with college debts getting larger, a growing number of students are choosing job purely on how much they pay.
UNI Professor Jim Kelly says, “A lot of students are lured away from the teaching field by higher paying jobs. Part of it is, they’ve got so much debt built up into their background, they’ve got to get into the workforce right away. They’ve found placements in industry, in insurance areas.”
Students are feeling the burden of their growing debt long before they graduate. Some of the kids have jobs to help cover the cost and some even have full-time, 40 hour a week employment in addition to school.