Poor credit can put a damper on your buying power, economic status, and financial life as a whole. This is particularly dangerous when considering combining your finances along with your marital bliss. If you’ve every consulted a credit counsellor, they’ll tell you the first thing to work on is cleaning up your debts before marriage, keep track of your credit report, and establishing a budget. These three principles will help you get the most out of your money and put you in a solid position to work from.
Clean Up Your Debt
Getting buried in credit card debt can arise from a variety of sources. You may have enrolled in higher education, had a medical emergency, or even lost your job. Luckily, you don’t have to handle your debt alone. Organisations like Consolidated Credit offer useful resources and tools to make debt a thing of the past. When you consolidate your debt your accounts will be combined into a single account instead of several. Having one central payment is a lot easier to keep track of than multiple as you may have already guessed. Budgeting is also faster to do when you have one payment to keep track of. Here are some other suggestions for resolving your debt:
- Identify your credit weaknesses and strengths.
- Give attention to the loans with the highest interest rate first.
- Pay more than the minimum monthly amount, if it’s feasible.
Request a Credit Report
The second step to financial freedom is studying your credit report. Websites like Experian give you the ability to run a free credit report. This can be done over the phone or online, and you’ll receive it in the mail. When it arrives, examine it carefully for any mistakes or errors. In the event that you find a mistake, seek assistance from a credit-reporting agency to dispute it. Within 30 days, you’ll be contacted with a response.
Budget
Regain control of your personal finances by creating a budget. They’re relatively easy to do and will provide a framework for your cash inflows and outflows. One method is to use a web-based budgeting software like Microsoft Excel. Another involves the old fashioned pen-and-paper. Whichever you choose, make it work for you by tailoring it to your lifestyle.
After using a budget for a month, ask yourself the following questions:
- Is my budget appropriately managing the money coming in and out?
- Am I saving enough to put into a savings account or emergency fund?
- Does it help me keep track of my spending?
If you answered “no” to any of these, it’s time to re-examine what’s missing or needs to be adjust.
Polishing your credit isn’t impossible by any means. Just by enacting these three changes you’ll be on the right path to sparkling credit and perhaps a happier marriage.
