Keep On Keeping On

Posted on August 18 2010

Are you working hard to get your debts repaid?  Maybe you’re one of our clients going through the Debt Management Program and have been working diligently to get unwanted credit cards paid off, or possibly someone who is trying to clean up their credit report.  We understand that this can be a tough road, although we also know how rewarding it is to accomplish your goal of becoming debt-free.

One of my favorite things about being a Certified Credit Counselor here at Family Life Credit Services is talking with clients who have completed our Debt Management Program.  Almost everyone says the exact same thing: “I didn’t know I could do it.”  Sometimes, our debt load seems too large for us to overcome; however, I’m here to tell you that if you truly want to become debt-free, you can do it – but only if you’re willing to work for it.

Here are just a few suggestions for keeping your finances in order:

• Regular monthly budgeting
• Contacting creditors about internal hardship programs
• Talking with a non-profit credit counseling agency
• Seeking counsel from friends/family/church
• Finding a part-time job to pull in additional income
• Prioritizing monthly obligations
• Comparison shopping for medium to large purchases
• Cutting back or possibly eliminating bills that you can live without
• Asking yourself if it’s a want or a need before every purchase
• Implementing savings for future expenses or unexpected emergencies so you don’t have to use more credit

For those of you that are trying to get your credit report re-established, focus on one creditor at a time so you don’t overwhelm yourself.  As each credit gets paid off, your credit report begins to look better.  Lenders are looking at people’s debt to income ratio to see if they can handle more debt.  Don’t let your FICO score be more important than it really is.  Focus on eliminating debts, so you can show that you are a good credit risk.  Your FICO score will begin to reflect this over time and lenders know this.  The most important thing is not to fall behind on regular monthly expenses and/or secured debts to repay old debts sitting on your credit report.  Set up a monthly spending plan so you can determine an amount you feel comfortable paying towards this unwanted debt.  It takes time and dedication!

For those of you on our Debt Management Program, continue to stay focused on the task at hand.  Each month that passes by brings you closer to your goal of a debt-free lifestyle.  This should be a major motivator for you to keep on keeping on.  Sure, life’s going to throw some curveballs at you!  That’s why I stress the importance of savings.  As soon as we all understand that credit cards equal convenience and that cash, checks, and debit cards hold the actual amount of money we own, then a lot of stress will be taken away from our lives, so we can enjoy what God intended for us to enjoy—family, friends, and a lifestyle out from under the bondage of debt.  Possessions are meaningless to God, so why do we focus on accumulating so much when a lot of the time it only holds us down?

Jeral Croaker
FLCS Certified Credit Counselor