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Actually I've been doing a budget sheet "before" things got bad. Now I am re-evaluating my budget and this is what I came up with.
1. No more eating out on weekends. Do Exercise instead
2. Don't charge anything if you "can't pay it off "
3. Continue paying down the larger loans and student loans as best I can
4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.
5. Cut my cable bill in half by closing unnecessary channels
It's hard to do this, cutting back so much, but really at the end of the month I feel better seeing that my statements with this on it "0".
And I am saving again and re-building my IRA.
Also as a senior, I am looking for work again in my Nursing field or whatever I can find.
I question Item 4...
4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.
My understanding is that this will reduce your credit score not improve it. If your balance on a card is higher than 30% of the limit, your score is hurt. Therefore a higher limit that is not used is good for improving your score. I would also accept the higher credit limit when offered; it helps improve score. Better to have a few cards (less than 6) with higher limits than many with lower limits.
Very true. I sure wouldn't do it, never knowing when creditors will decide to lower you again on their end.
Camishela wrote:
I question Item 4...
4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me.
My understanding is that this will reduce your credit score not improve it. If your balance on a card is higher than 30% of the limit, your score is hurt. Therefore a higher limit that is not used is good for improving your score. I would also accept the higher credit limit when offered; it helps improve score. Better to have a few cards (less than 6) with higher limits than many with lower limits.
Hi:
"4. Wrote to some of my creditors to reduce the credit limits and refused higher credit limits when they were offered to me."
Question:
My understanding is that this will reduce your credit score not improve it. If your balance on a card is higher than 30% of the limit, your score is hurt. Therefore a higher limit that is not used is good for improving your score. I would also accept the higher credit limit when offered; it helps improve score. Better to have a few cards (less than 6) with higher limits than many with lower limits.
The letters I sent out to reduce my credit limits were on my loans with Bank of America. Yesterday I received a letter saying they were already had done this during the first black Monday's crash. The others, such as credit cards, well the limits on them were set when I open them, and they're increasing the line of credit themselves and I do accept it within reason. It's the Bank loans I don't want higher limits with due to the high interest rate.
I had made the choice to start working on becoming debt free a few years back. I now, in my
40's have the maturity to make it happen. Of course I am in the process of buying a home, so when I say debt free, I mean frivilous debt. Constant checking and renotiating my terms and interest. I have around 9k in credit card debt with an effective interest of 1.98%, unlimited payback time. The CC companies hate me, but who cares. I pay at least triple the amount due religously. I keep my shredder in the living room so before I get comfortable and tempted to look at offers, I drop them in the feeder.
I buy only what is needed, look for ways to co-op with friends, ask for a deal or discount on EVERYTHING I purchase. I also follow the advice of Warren Buffet (of course I use pennies where he uses dollars), subscribing to Drips, buying stocks of companies I know, understand and are a need or people still spend disposable income on.
My goal is to buy a house next year, so I:
joulze wrote:
- i'm eating out much less. i'm packing my lunch and bringing it with me to work.
- i also stopped buying coffee at startbucks or dunkin' donuts. i make my own coffee at home and bring it with me in a travel mug.
- i am evaluating everything i buy to make sure it is something i need and not want.
- i'm creating a new budget and am more commited to stick to it!
- i'm reading "the money book for the young, fabulous, and broke" by suze orman. it's really helping me too!!...so much so, that i'm actually posting on myfico.com. i must be turning a corner.
There are a lot of things I do, not only in an economic crisis, but most of these are habits.
Think about if I can run certain errands on the way home from work rather than making special trips.
Don't drive aggressively - saves not only on gas, but also nerves and potentially an accident
Pay online to save money for the stamps
Make home improvements that pay off long-term (95% efficiency furnace, energy efficient appliances)
Don't run equipment, lights, etc when they are not in use.
When I see a good bargain for things I use on a regular basis, I stock up.
Most of all, make sure that I do my best at work every day - with a smile on my face. This helps ensure that I will have a better chance of keeping my job when things get rough.
These are just a few...