Tidbits® - June 2008
Credit insight from Credit.com
Welcome to the Credit.com newsletter!
In this issue, we have six easy tips for reducing your debts,
eight ways to save on gas this summer and an update on the launch
of FICO 08.
We'd love to hear from you! Send us an
email with your questions
or comments anytime!
Quick Tip
Gas prices this summer are hitting record highs. Whether you're fueling up for a family road trip or daily commute, you might want to get a gas card.
You can earn a 3-6% rebate on gas purchases along with other perks. This could translate to $4 cash back each time you fill up the car. Plus, you can now apply for gas cards that work at any brand of station!
Find a gas rewards card online today
Six Painless Ways to Get Out of Debt
Does thinking about your credit card debt give you heartburn? Do you
cringe when your statements arrive in the mail? Do you avoid looking
at your credit report?
If so, it is time to take control. Stop being scared of your debts
and start taking action. Credit.com has six painless tips to help
you become debt-free:
1. Stop Spending
This is the most obvious and also the trickiest step for most people.
Stop putting new charges on your credit cards. Leave them at home
when you go shopping. Switch to cash and checks. Freeze your cards
in a block of ice. Do whatever it takes to avoid adding to your debt
balances.
You can work out a monthly spending plan to pinpoint places where
you're losing money and to establish some goals:
http://www.credit.com/r/tidbits_create_family_budget/
Use a free program like Mint.com to track your progress each month.
Reward yourself when you reach milestones!
2. Stop Saving
If you're in serious debt, it can also be a good idea to cut back
on your savings. It doesn't make financial sense for your vacation
fund to earn 3% while your credit card debts cost you 19%. The
catch is to make absolutely sure you put the savings amount toward
your debts. Save it or use it to pay off your debts, but don't
spend it.
3. Try DIY
See if you can work out a plan to become debt free on your own.
Do the math. Using your spending plan from the first tip,
calculate how much you can afford to pay toward your debts with
each paycheck. Subtract each of your minimum debt payments from
that amount. Put the leftover money toward the debt with the
highest interest rate. It helps to dole out these checks right
when you get paid, instead of waiting for whatever money is
left at the end of the month:
http://www.credit.com/r/tidbits_debt_reduction/
4. Make More Money
This could be as simple as asking for a raise at work, taking on
some overtime hours, or holding a garage sale. You can also try
selling a few things on eBay or Craigslist. And if you're
artistic, sites like Etsy.com can help you sell handmade goods.
Every extra dollar helps when it comes to getting those debts
paid off.
5. Consolidate
Consolidating your high APR debts onto a card with a low rate:
http://www.credit.com/r/card_lowapr/
or into a personal loan:
https://www.credit.com/r/ploanaff/af=p40523&article
could help you save on interest while you repay. The better
your credit score is, the better the deal you can get on a
new loan or card. This system only works if you don't add
new charges to the accounts you consolidated and if you
still work on paying the balance off quickly. Remember:
There is no way to borrow yourself out of debt.
6. Get Professional Help
If you don't think you can pay off your debts on your own,
request a free consultation with a debt counselor. These
agencies have deals with the credit card companies that can
help reduce the total amount you owe. Get a no-obligation
quote from a debt counselor online:
https://www.credit.com/r/dcl_ufg/
The most important tip of all is to START TODAY! Your debt
balances can start dropping tomorrow if you take action.
If you have questions about getting out of debt or want to
share your own debt story, email us at tidbits@credit.com.
Ask John
Last summer, FICO made headlines with their decision to release
an updated credit score formula that excluded authorized user
accounts.
Our credit score expert has an update on the roll-out of this
new credit scoring model.
Get the latest news about FICO 08:
http://www.credit.com/r/tidbits-vol33/
On the Blog
Our money experts have eight easy tips to help you save gas
this summer! See how using dashboard sunshades could help
reduce your gas costs.
Read tips for saving on gas this summer:
http://www.creditbloggers.com/2008/05/eight-great-way.html
Quote of the Month
"You can only become truly accomplished at something you love.
Don't make money your goal. Instead, pursue the things you love
doing, and then do them so well that people can't take their eyes
off you."
- Maya Angelou
Tidbits® - June 2008
About this newsletter
This information has been compiled and provided by Credit.com as
a service to the public. While our goal is to provide information
that will help consumers to manage their credit and debt, this
information should not be considered legal advice. Such advice
must be specific to the various circumstances of each person's
situation, and the general information provided on these pages
should not be used as a substitute for the advice of competent
legal counsel.
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