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!