Money Sense Tips

Some experts said that the worst is over. Other said the global recession is just getting worse with flu pandemic threating it.

Nevertheless, we still need to survive. Here are 5 ways which you can use to survive through this recession.

1.  Pay down your debts and look at your investments. Cut up all credit cards and save one for emergencies only.  Put away enough money to last for a minimum of 18 months. Open a money market account or a CD.  If you have stocks, don’t sell; ride the tide. Continue contributing to your 401K plan.  If you are currently contributing to a Variable A Annuity, change it to the Fixed Fund Program which yields 8.25%.

2.  Sit down with your family and revisit the household budget. Make cuts where necessary, especially in the miscellaneous category.  Refrain from buying unnecessary items such ordering take-out food, magazines, lottery scratches, and other incidental items that add up.  If you tend to dine out once a week, reduce that to once a month.  Bring your own lunch to work.  Use public transportation when you can and/or carpool to work with a friend or neighbor.  Try to complete all outside errands and grocery shopping in one day.

3.  If you have items at home that are gathering dust in the attic or garage, consider selling them on eBay.  Do you have any clothing that is new or slightly used?  If so, you may want to take them to a consignment shop wherein you can sell them for a commission.
==>> Learn How To Make More Money From Ebay

4.  Do you love to write?  Can you spare a few hours a day online?  If so, you can earn money writing for blogs and websites.  Webmasters do not have the time to create articles for their websites or blogs, and having a good writer on hand to fulfill that need not only helps them but can also supplement your income substantially. ==> Make the Extra Income

5.  Look into applying for a second job.  Ask your boss if there is additional work requiring overtime.  If you have teens at home, perhaps they can apply for part-time work after school or on weekends, or assist neighbors by babysitting or dog-walking.

We will all have to buckle down on expenditures during this difficult time.  More importantly, do not panic.  Just do the best you can for you and your family and we will eventually see light at the end of this long, dark tunnel.

In some cases, bad credit is a result of irresponsible money management. But it often occurs because of unexpected financial hardship. One day you might have all of your bills current, and the next you could become disabled or lose your job. And if you fall behind on your debts, it will wreak havoc on your credit rating.

Credit repair agencies claim that they can remove bad entries from your credit report. But did you know that you can often have them removed yourself at a much lower cost? There are two methods by which you may be able to get negative entries removed from your report.

Option #1: File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. If the information is found to be false, inaccurate or unverifiable, it must be corrected or removed from your report. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation.

If there is any inaccurate information on your credit report, a dispute is certainly in order. But some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed.

If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. No explanation is required. But keep in mind that if the entry is verified, it will remain on your report. And if the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry as long as they notify you at least 5 days before doing so.

Option #2: Negotiate with Creditors

Dealing with creditors can be intimidating, especially if you’re not on good terms with them. But speaking to your creditors directly may help you get negative information removed from your credit report.

If you only have a late payment or two on your account, a creditor might be willing to remove the derogatory information once you’ve resumed a regular payment schedule. If you’ve experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative entry. It sounds like a long shot, but you never know until you ask. Requests to remove late payment information may be made after you’ve brought you account current. But if you’re hoping for removal of a repossession or collection action, it’s best to negotiate a deal before you pay anything.

If You Can’t Get the Bad Entries Removed

There is no guarantee that disputing information on your credit report or negotiating with creditors will get negative items removed from your record. If it doesn’t, the best thing you can do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild good credit is bring past due accounts current. Try to work out a deal with your creditors to accomplish this, or talk to a credit counseling agency. But don’t miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, keep the current account current.

Once you’ve brought all of your accounts current, put a priority on keeping them that way. Making your payments on schedule will raise your credit score, and with the passage of time, the good entries may outweigh the bad.