Debt is not something that people aim to get into, nor is it something that people look forward to having. In fact, people who are in debt often find themselves wondering how they got there in the first place. Like gaining unwanted weight, financial debt does not happen overnight. 360 Credit Consulting in Austin knows the best ways to help you get out of debt and improve your credit score. Call us today to learn what we can do for you.
Keep Up Appearances
If you want to “keep up with the Joneses,” then you’re going to have to go into debt. That shiny new car they just drove home in is actually a lease, the house they’re living in has a mortgage that is slowly causing them to drown, and the number of loans they have will soon cause financial ruin. They may look like they have it all together on the outside, but in reality, they are drowning in debt, and you will follow them if you don’t make better choices. The first thing you need to do is to stop making comparisons. Comparisons never made anyone happy, and after all, are things really what make you happy? Choose to focus on the people in your life, and you will find that your concerns about how others are living will start to fade away.
Sacrificing is no fun. Why should you have to be the only one who doesn’t have the coolest TV with the latest technology for the best viewing experience? Why can’t you have a boat for entertaining friends at the lake on weekends? Why should you miss out on a vacation to the Caribbean islands when all your friends are going for the second or third time?
Why would you decide to do any of those things if they were going to send you into the debt spiral? We make sacrifices when we decide to be the “bad guy” and choose to say no to items and trips that we would like to purchase or take, but really are not in our best interest. Sacrifices are not easy, but when you make the right choice, your budget will thank you, your credit score will improve, and your stress levels will level out.
Make “Stuff” Your Priority
Do you remember how excited you were to return to school after Christmas vacation when you were a kid? You couldn’t wait to tell your classmates about all of the wonderful presents that you received! In the usual hubbub of each kid eagerly sharing their news, there was always that one kid who seemed to get everything that anyone could ever possibly want. It made it hard for you not to be jealous and wish you could get as much stuff as they did.
Fast forward to the present. You now have your own money. That kid who always got everything is also an adult, and he still gets everything he wants. You are tired of feeling left behind. You make a decision and suddenly, your garage is filling up with a four-wheeler, a camper, a kayak, a motorcycle, and the list goes on and on. You cannot seem to acquire enough stuff. As soon as you have one item, it loses its shine and you have to have something else that is even newer. The problem with new stuff is that it doesn’t stay new for long, and you will never have enough. The more you make consumption and purchasing new items priorities in your life, the deeper into debt you will go, and the more your credit score will continue to plummet.
Open Numerous Credit Accounts
Credit cards are amazing! They let you purchase the newest washing machine, or couch, or lawnmower without having to spend any of your own money! Sure, you’ll have to pay eventually, but why not go on a spending spree now and enjoy all those new things instead of having to wait until you’ve saved up enough? Saving will take forever!
While credit cards do have their benefits, using them in the manner just described is incredibly detrimental to your credit score, not to mention the debt that you are diving into. Be wise about what credit accounts you choose to open, making sure to check out the specifics of what their APR is, as well as fees for late payments. Don’t spend up to the limit of the card if you do not have the money to support that type of purchase. Poorly managed, credit accounts can quickly ruin your credit score and also cause a lot of stress as you work to pay down your debt. Used wisely, credit accounts can help boost your credit score. Contact 360 Credit Consulting in Austin to learn how we can help you improve your credit score. Understanding your credit score and achieving the number you want isn’t hard, let us help.