Time to focus and know exactly what your finances look like!

1.       How much of your income is used to pay off debt?

The general rule is your debt (Credit Cards, Loans etc.) should not be more than 30% of your total monthly income. So if you are exceeding that percentage, you should really consider not applying for more credit whether it be a newer car or that department store credit card.

2.       Positive versus Negative Credit!

Part of your credit score is based on the well rounded mix of the types of credit reporting on your credit report. If you for example have 5-10 credit cards nearly maxed out that is considered as negative. Home loans and student loans are considered positive debt. As the student loan will lead to you making more money in the long run and your home will hold value after it has been paid for.

3.       What are those high interest credit cards really costing you?

Look at all of your credit cards and do the math – the faster you pay those high interest credit cards off the more you will save – make a budget and stick to it. Pay the minimum payments on those lower interest cards and dedicate as much of your income as possible to those higher interest cards.

The time you take to be aware of your financial status will help lead you down the path to financial freedom!