Here a credit score, there a credit score, every where a credit score. Some of us don’t want to even think that a little 3 digit number can trouble us, but it does. Three credit reporting agencies keep track of our debt payment records; Equifax, Experian, and TransUnion with their Fico Scoring models BEACON score, Experian/Fair Isaac Risk Model, and EMPIRICA. Each agency is going to score a little bit different but here is a break down of what makes up a credit score.
This mysterious number is what determines the cost of debt to individuals. The credit score range is between 300 to 850 and currently the average is 723. The higher number means lower cost of debt, and the lower the score means higher the cost of debt. Let’s take a look what makes up a credit score.
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I would consider this one of those items on the same shelves as losing weight. Here is why both of these topics have so many similarities:
1. Both are probably 20% technique and 80% the person.
2. There are a hundred ways to accomplish your end goals
3. There are some simple guidelines for accomplishing each.
Exercise the simple guidelines are: Eat less, exercise……..with many paths to get there. Getting out of debt I think I have narrowed it down to only 3 simple guidelines which maybe could only be two: Earn more money, have less expenses and/or spend less, and sell items of value to increase income or have less expenses. One way to get out of credit card debt would be the snow ball effect. If you have multiple debts, number one sell items of value or take out money in savings to pay down your most expensive debt with the least amount of balance. Lets use this example:
Credit card A has a balance of $2000 and interest rate of 10% Min. Monthly payment of $50
Credit card B has a balance of $2000 and interest rate of 7% Min. Monthly payment of $40
First you would do a spending plan and figure out how much month you can put towards paying down your debt. In this case lets say it is $200, so what you would do is pay the minimum payment on Credit card B of $40 and pay $160 towards Credit card A. Once you pay Credit card A off, then you will take that full $200 payment and apply it towards Credit card B. DON’T STOP HERE!!!……..Now you just freed up $200 a month for extra income…..please don’t go spend it! Instead, take that $200 a month and put it in savings or a retirement account.
Hope this helps 
Stay tuned as I will have more money saving tips coming your way!
Ah yes…..the wonderful Fall leaves start showing there color, temperatures start getting cooler, and people who are involved with budget planning for the next year don’t get to see these things take place or start pulling their hair out because deadlines are approaching. Forecasting, trend lines, and predictions…..oh my! Yes, depending on when some company’s have the end of their fiscal year, either they have already went through this or about to. On this day I want to help those who are not doing a budget for a company but for their families or selves. First, I do not like the “B” word……Budget, so from this point on we are calling it what it truly is…….a “Spending plan!”
I think we can break it down into 4 steps:
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