Rebuilding Your Credit With Zen
Are you among the millions of people who are stressed out by debt? If what you’re doing now isn’t working, maybe the solution is to take a Zen-like approach to credit repair. You may be surprised how a little mindfulness can help you control spending and may help to rebuild your credit.
What Is Zen, and What Does It Have to Do With My Credit?
Zen philosophy involves practicing mindfulness and bending your will to the way. Mindfulness, at its most basic, means stopping to think before you act. Put it into the context of impulse buying.
It is said that if you’re on the wrong path, events have a way of changing your direction. If you’re constantly spending beyond your means, your credit score may help put you back on the right track or you may end up suffering the consequences. By remembering this philosophy, you could improve your credit.
Zen and the Art of Debt Management
In the context of good credit, Zen can mean the feeling of lightness and peace you’ll have when you aren’t weighed down by debt. The path to good credit begins with four basic steps:
• Check your credit report
• Correct any inaccurate information
• Bring any late accounts current
• Pay down credit card and loan debt
In the old days, we were told that it’s wise to open a credit account, make a few small charges, and then pay it in full immediately. This same philosophy is true today. By ensuring you have a small enough balance to pay off each month, you can lessen the risk of outstanding debt.
By ensuring you have a small enough balance to pay off each month, you can lessen the risk of outstanding debt.
We’ve also been told to close credit card accounts once they’ve been paid off. However, companies that want to give you credit use credit utilization as a means to determine your risk. If you have used a large amount of your available credit, it may send a sign that you’re facing financial difficulties.If you have used a large amount of your available credit, it may send a sign that you’re facing financial difficulties. Click To Tweet
How to Keep From Getting in Trouble in the First Place
No one can predict circumstances like losing a job or having to pay medical bills, but keeping your debt in check may offer you a safety net if emergencies ever arise. Don’t avoid credit, but don’t abuse it either. You should never buy anything on credit that will be used or consumed in less than a year.
Furthermore, you should try to pay in cash whenever possible. It’s harder to overspend when actual money is leaving your hand.
We hope these tips will help you find your financial nirvana. If you need help figuring out where to begin, click here to get a free consultation on credit repair.