2013 SPRING ISSUE | CHOICES 19
ABOUT THE AUTHOR
Kathy Jo Pollack is a featured author in “ Life Choices : Putting the Pieces Together ” and former training specialist for Consumer Credit Counseling . She is a certified life coach , trainer , and speaker with a focus on financial independence & relationships . Contact Kathy Jo at mycoach @ kathyjopollack . com . Visit her website at www . kathyjopollack . com for more resources , tips and links .
Second , be careful not to build debt in an attempt to build credit – debt and credit are not the same . Do not max-out credit limits or open numerous accounts in an attempt to build credit . Paying all bills on time and paying down your balances will help build a good credit report , which ultimately opens doors and leads to opportunities . You will have more options and choices when your credit is at its best , which leads to the next area , Debt .
Debt : Now that you know how much money comes into your household after taxes and what goes out , take a closer look at your debt .
Warning signs of too much debt :
• Struggling from paycheck to paycheck
• Making only minimum payments on credit cards
• Arguing about money
• Putting off doctor / dentist visits
• Using a credit card for things you used to pay for with cash
• Afraid to total your debt
Suggestions to reduce debt – take control now !
• Stop using credit cards
• Pay cash
• Pay down balances ; pay more than the minimum on credit cards
• Work with your creditors
• Consider debt consolidation or lower rate transfers
• Talk with a professional ( National Foundation for Credit Counseling , www . nfcc . org )
Savings : Build-up your emergency savings to $ 500 and strive to save at least three months of your net income ( six months is even better ). Once you become more aware of your spending and begin to pay off debts , you will be able to save more , including saving for retirement , and ultimately do more with newfound confidence !
Suggestions to keep you on track :
• Stick to your budget and continue to save
• Pay ALL bills on time ALL the time
• Pay balances in full on credit cards
• Comparison shop for everything
• Check , review , and correct each of your three credit reports every year
Master your Financial A , B , C , Ds & celebrate your $ uccess !