A new school year signifies new beginnings. New teachers, new classes, and new goals for both children and parents. Is regaining control of your debt one of your goals? If so, now is a great time to do so. Whether your goal is ultimately to improve your credit score, resolve your debt, or both, there are a few things you should know as you begin. And if you need help, FreedomPlus could help you simplify the process.
Important Factors that Impact Your Credit Score
The way that credit is rated changes from time to time. However, some things continue to remain constant. For example, paying your bills on time is still the biggest factor that impacts your credit. While other things like your total amount of debt also impact your score, on-time payments account for 35 percent of it. So, if you are looking for the most effective way to build a solid credit score, make it a habit to pay your bills on time. Some tools that you can use to get into this habit include setting up automatic payments or use a budgeting and organization system. This can be done on your computer, or you can even create a physical filing system for your bills. The key is to find something that works for you and stick to it.
Now, sometimes life happens and the bills add up to more than what you have the resources to pay. In these cases, there are ways to get back on track. You can try to find ways to cut expenses in other areas, or even take up a second job. Another alternative is to seek a debt consolidation loan from FreedomPlus, a personal lender that belongs to the Freedom Financial Network of companies. Whatever method you choose, the key is to address the issue soon before the bills begin to pile up.
What You Need to Know About Prioritizing Your Finances
When you look to make a fresh start, whether it is at the start of a new school year, new calendar year, or for any other reason, you need to know where to begin. This can be confusing with all of the conflicting advice out there. Some experts claim you should pay off the credit cards as soon as possible, while other say it is more important to build an emergency fund. And what about retirement savings? If you are working with limited funds, figuring out where to allocate them can be puzzling. The truth is that all of these things are important.
Start by making sure you can meet your monthly payments for your home (whether that means paying a mortgage or paying your rent). Next, address any student loan debt that you might have. This is another vital one to keep up with. When it comes to saving or paying down the credit cards, ideally you want to tackle both of these at the same time. While this may sound impossible, it can be done. Saving six to nine months of income in an emergency fund is important to do, but you can take it slow. Do what you can and stick to it. Over time, you will see the fund grow.
As you are working towards building savings for emergencies, you should also try to eliminate your credit card debt. When you pay down your credit card debt, you effectively produce a 15 – 20 percent return on your money! If you find that all you can do is meet the monthly minimum payments, then this is going to be a very slow process. Utilizing a custom loan from a program such as FreedomPlus could help you take control of your finances much quicker.
What is FreedomPlus?
FreedomPlus is a straightforward, simple personal loan program that could help you get back on track financially. Each loan is custom-tailored to the unique needs of the borrower and it is based on more than just your credit score. The process is simple – just submit your application online, talk to one of their knowledgeable loan consultants to see what you qualify for, then receive your money to pay off your credit cards. Or, use it for another purpose.
FreedomPlus offers loans that range from $10,000 to $35,000 and are used them for various reasons. In many cases, you may know the same day if you are approved. And once you are, you can have the money you need to your account within 48 hours. You will know from the start how much you can borrow and what it will cost you to do so. There are no hidden fees or extra costs. The process is designed to be straightforward and easy so that you can simplify your debt and start a new beginning.