When you find yourself in seemingly insurmountable debt, working on building your credit score and saving money at the same time can seem like an impossible feat. As you struggle to climb to the top of the mountain of bills, it seems like a never-ending cycle of making payments, only to have more bills come in.
But regardless of your financial situation, it is possible to pay off your bills, build your credit score, and save money at the same time. Managing your money is serious business, but with some time and effort you can get there.
When people hear the word budget, negative thoughts instantly come to mind. They automatically think about going without the pleasures of life. However, if you want to build your credit and save money at the same time, budgeting is going to have to become a major part of your life.
By keeping track of your spending, you’ll be able to keep track of where the majority of your money goes. If you cut out unnecessary expenses, you’ll be able to put more money down on your bills and get them paid off quicker. Managing your money wisely is the only way to get your bills paid off as quickly as possible, build your credit, and save some money at the same time.
Pay More Than the Minimum Monthly Amount
Many consumers fall into the trap of only paying the minimum monthly amount on their credit card bills every month. While that smaller amount is much easier to manage, paying only the minimum monthly amount can keep you in debt for years, and ensures that you’ll pay a fortune in interest charges.
If you’re serious about building your credit and saving money at the same time, make sure you’re paying more than the minimum monthly amount. If you do that, you’ll save money on interest, and get the bill paid off much faster.
Pay Your Bills on Time
Always make sure that you pay all of your bills on time. Your credit score is all about how well you manage your money. If you’re falling behind on bills or not paying them, you’re going to have a very low credit score. But if you’re constantly paying them on time and keeping up with them, you’re going to have a high credit score.
It doesn’t matter if it’s a loan, utility, dentist, or credit card bill. You need to make sure you make that payment on or before the due date. If you’re worried that you might forget to make the payment, opt for automatic payments that are automatically withdrawn from your bank account to ensure that you can’t forget.
If you’re late with a payment, not only does it negatively impact your credit score, but you’ll also get hit with a late payment fee. Paying your bills on time will help you build your credit score because it will show a history of timely payments, and show that you know how to manage your money well.
Build Your Finances
If your current income makes it almost impossible to pay your bills down faster, it’s time to figure out a way to generate more income. More income means more money to put down on your bills so that you can build your credit and start saving money. Taking on an extra job is an excellent way to achieve this goal.
Nobody likes the idea of having to work two jobs. However, by working only a few more hours per week, you can start paying your bills down faster and avoid paying interest charges. If a second job isn’t a possibility, you should think about putting some money into a savings account, or selling things you don’t need.
Regardless of your financial situation, it is possible to build your credit score and save money at the same time. It’s just a matter of budgeting and managing your money. If you do those two things well, you’ll have a better credit score and save some money while you’re at it.
By Cristobal Ravazzano. Visit My Google+ Profile.