5 easy steps to managing credit Print E-mail

Managing credit can be hard if you have already dug yourself into a deep pit and created bad habits. On the other hand, it can be easy if you're just starting out and simply need guidance.

So here are 5 simply steps to managing credit:

  • Spend less than you earn
  • Save up for major purchases (yes its old fashioned but it works)
  • Pay off your credit cards each month. This keeps you from spending what you don't have and prevents you from digging yourself into a hole.
  • Create an emergency fund with 6 to 8 month's monthly expenses. Its not a matter of if an emergency will happen, but when. Therefore, don't presume on the future, you never know what might happen and its only wise to have something to fall back on when those emergencies do arise.
  • If you can't afford it, don't buy it. A credit card is not cash!

If you're already in that pit with credit being shoveled in to bury you, take it step by step. Start with paying those bills on time and start that emergency fund. If you are looking for step by step guidance, get my book  Money Doesn't Grow on Trees, now available.