Tip #48: Find more ways to income
While you are repairing your credit, you will want to
channel as much money as you can into savings and debt
repayment. For this, having a second income or even just
a few hundred dollars a month more can mean that you get your
credit into shape faster.
Having a secondary form of income can also keep your credit
safe - if you lose your job, you can use the money you make
from a secondary source to repay your bills until you find
another form of employment.
There are many ways to get more income:
-You can ask your employer for a raise.
-You can start to sell something through the Internet or
through a company.
-You can establish your own small business that can be tended
to on the side.
-You can rent out part of your home to make some extra
money.
-You can get a part-time or weekend job.
Whatever you do, finding an alternate source of income can
help your credit immensely.
Tip #49: Prepare for financial
emergencies
Few of us think about what would happen if we lost our jobs
or suddenly became too ill to work. The thought is simply
too terrible to contemplate in many cases, especially if we are
living paycheck to paycheck with a job as it is.
The fact is, though, that financial emergencies happen to
almost everyone at some point and they can have devastating
impact in your credit. In fact, most people who declare
bankruptcy do so because of a huge financial disaster such as
sudden unemployment, huge medical bills, a lawsuit, or divorce.
Despite this, few people plan for these problems, even though
they can happen to anyone.
If you want to keep your credit score in good trim, you
should know exactly what you would do in case of an
emergency. Developing an actual written plan can help you
by letting you take action to save your credit as soon as an
emergency occurs. Some items that could be on your
financial emergency plan could include:
1) A list of all assets you could liquidate if you had
to.
2) A list of all extras or luxuries you could cut out of
your life right away if there was a problem (i.e. newspaper
subscriptions, cable television, water delivery service, Friday
nights at the movies).
3) A list of any resources you have that could help you in
case of an emergency. Maybe you know a lawyer who deals
in financial facets of the law. Maybe you have insurance
that could help you. Maybe your employer offers a
severance package. Whatever it is, write it down. Keeping
a list of these resources will make them easier to access in
case of an emergency.
4) Other ways you could get money if you had to - jobs you
could take, things you could rent out to others.
Tip #50: Get overdraft protection, insurance on
your credit cards, or other services to keep your credit in
good shape
Talk to your bank and lenders about services they offer to
keep you safe. Overdraft protection, for example, is a basic
service that often costs nothing or very little extra but which
protects you in case you withdraw too much money from your bank
account.
With overdraft protection, you do not get a “ding” on your
credit report or a charge for insufficient funds. In most
cases, you get a day or two to add more money to the account to
cover the gap. Some credit cards and other loans offer a
similar service or offer insurance which protects you in case
you lose your job and are unable to pay for a few
months.
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