Twenty-three days into the new year and while some are celebrating the success of achieving goals outlined in December 2018, a majority are anxious about the devastating effects bound to increase as a result of the government shutdown. As Democratic and Republican politicians continue to express anger, disappointment, and disbelief surrounding the lack of common ground reached with regard to building the infamous “wall” tens of thousands of federal employees are scrambling to pay bills as a result of either being furloughed or simply reporting to work and completing tasks without pay. Because of these events, and more, resolving to practice better fiscal habits may be inconsequential for individuals scrambling to pay looming bills.
However, for those seeking to brainstorm, and ultimately execute, realistic financial goals in 2019, the time to start is now. Moreover, when analyzing a top financial goal among individuals, the common thread was improving one’s credit. To illustrate this claim, in December 2018, Experian (a leading global information services company) released an article announcing the launch of Experian Boost. According to writer Brian Cassin, Experian Boost is aimed at “giving consumers more control over their credit score” by “adding positive telecom and utility payment information directly into their credit profile”. The reason for the launch was because, “more than 100 million Americans don’t have fair access to credit today. They are often overlooked by lenders and forced to rely on high interest credit cards and loans.” As a result, they “often find themselves stuck in a never-ending cycle in which the best of intentions and the desire for a better financial future clash with reality” (Cassin, 2018). Looking to add another perspective, on January 16th, I participated in a #CreditChat on Twitter with Experian and their panel of experts. Below you will find the transcript: Q1: What resources or apps are available to those trying to pay down debt? WW: Apps such as Mint are more than ideal in providing individuals with the necessary tools for paying down debt. Additionally, @CFPB’s website has great information and step-by-step-tools as well. #CreditChat Q2: Is a credit card balance transfer worth it? WW: Balance transfers are worth it IF your new credit card comes with low interest rates coupled with a high credit limit. #CreditChat Q3: What should you do if your balance transfer credit card limit is too low? WW: Do not panic and call your credit card provider to work through increasing your limit. Do research beforehand, so as to be prepared, is also highly-suggested. #CreditChat Q4: What are some common myths that keep people in debt? WW: I think the biggest misconception and myth is that checking your credit score will ultimately lower it. Fortunately, there are a plethora of articles busting this myth and highlighting the fact that it is beneficial to check your score. #CreditChat Q5:How does debt affect your credit score? WW: We know that unpaid credit card statements, and overall debt, can increase interest rates often making debt harder to eradicate. While the many factors surrounding debt need to be analyzed, it is still worth noting that massive debt produces negative outcomes. #CreditChat Q6: At what point should you file for bankruptcy? WW: When you have exhausted all options in repaying debt and need to push “restart”, filing for bankruptcy can be an option. However, it is advised to read all of the rules regarding bankruptcy before proceeding. #CreditChat Q7: In what order should I pay off my debts? WW: Because each individual, and their level of debt, is unique, each method of payoff will be equally unique. In paying off my debt, student loans to be exact, I have been intentional about raising monthly payments on larger loans. #CreditChat Q8: Should I prioritize paying off debt or saving for emergencies? WW: If financial circumstances allow for both paying off debt and saving, do both! Again, we have to be careful about categorizing all financial needs as the same, so if your income only allows you to pay off debt, do not feel bad about slowly saving. #CreditChat Q9: What are some best practices for avoiding credit card debt altogether? WW: Do not be tempted to swipe, swipe again, and swipe once more, because of high credit card limits. Be smart about purchases and learn how interest rates are the crux of remaining in great financial standing or falling into financial traps. #CreditChat Q10: Any final tips on minimizing debt? WW: I am an advocate of tracking expenses; thus, whether purchasing a “Money Diary”, tracking expenses through Excel spreadsheets, or through auditory apps, being able to pinpoint excesses in spending can help in curbing bad habits. #CreditChat
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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