What to Do with Bad Credit


Having bad credit will make your life tougher. When banks know that you have problems with using credit cards, they make future loan difficult for you.

Bad credit also affects your relationship with insurance companies. People with bad credit is deemed high-risk clients, and thus more assurance is needed. Bad credit people are required to pay higher for their policies.

Here, we are learning how you can improve your condition and regain good credit rating.

Managing the existing debts

Debt2The first thing you need to do is to put all of your debts in order, based on their amount and payment deadline. The one that you have not paid for months and had the highest interest should come on the top of the list.

You can work with a professional debt management company for a neater and faster result. They will not give you a consolidation loan, but as the name says, they will manage and negotiate your debts with your creditors. The monthly payment and interest rate will be reduced so that your debts will no longer overwhelm you and you can pay them more reasonably.

You can manage your debts by yourself, but you need to allocate a considerable time to do it. Firstly, you should make a financial statement which includes your expenses and incomes stated in a detailed manner. If you have multiple creditors, you should add them to your report, and explain how you are going to pay them all with your current financial condition.

The tricky part is that you should allocate some percentage of your income for paying the debts to all of your creditors fairly. Otherwise, the creditor who receives the least portion will be least likely to accept your debt management plan.

Checking for errors

EvaluationOnce you are given a bad credit from banks, do not immediately accept the assessment, especially when you have been meticulously keeping separate records and find some credit reports that do not match. Errors do happen, and you should check again where the things have gone wrong.

What you should be looking for is the accuracy of personal detail information, defaults, judgments, and credit history. Now that you might have realized that keeping a separate record for your credit is necessary to avoid financial loss caused by errors, you should start doing it.

Scheduling auto-debit

DebtOnce you have all of your debts organized, you can create a new bank account to store the portion of the income that you have allocated for paying your debts. Automatize the debit system in that account, and all you need to do is just to deposit to that account with discipline.

But this suggestion only works if the amount of money you owe is still within the range of the surplus of your income. If not, then you need to apply for debt consolidation.

Debt consolidation service

Debt serviceDebt consolidation service is for people whose debts surpass their ability to pay them. It is basically a loan service that pays debts with another debt. But this time, all the debts are not scattered all over the place.

For bad credit people, however, debt consolidation service often charges a high interest rate. But it is still an opportunity you must take, in case you have overwhelming debts.

Leaving debts snowballing, and letting it crush you at the end of the day is the worst way to give up.

All You Need to Know About Retirement Plan


Saving for retirement plan seems to be difficult and very tempting to postpone. People in their twenties will think that saving up for retirement is too soon for them. And then they get married.

Then, they have children, and the education for them becomes the family’s main priority. Once again, no allocation for a retirement plan.

Old abroadAnd the children enter a university, when on average, the parents would be in their forties already. No retirement again for this time, because college is the most expensive education one can afford.

Not until the age of forty-eight years old, the couple will have the time to think about their retirement. But at that age, changing professions is already impossible, or extremely difficult. No raise on the paycheck, and no coverage if the couple starts to think of investment.

Quite a grim story, right? Learn how to do better than those couple by reading this article to the end.

There is never too soon for an investment

InvestmentThe wrong mindset about investment is that you can postpone having one, while in today’s economic climate, if a person does not have any investment until the age of forties, then he/she is going to have a hard time living in their sixties.

The most promising and safe investment is in the property business. You can buy a potential property, renovate, and then sell it at a higher price. Or, you can buy a property for commercial purpose.


The first type of investment will cost you a lot of money, but the return will be much higher than its original price, especially if you have an excellent taste of architectural aesthetic. The second type will provide you with less income, but more stable than the first.

The trick for getting the most profit from buy-to-sell property investment is to have a sharp observation skill. You must know which cheap property in the suburb that has the potential to be profitable in the next two years. You need to be well-informed and constantly updated with the news surrounding your property.

Contributing to the 401(k) plan

When you have been working for the same company for years, your loyalty will be given back to you in the form of retirement plan, the 401(k). You can set up your retirement goals and the financial plan derived from your basic salary.

For example, your salary is 60,000 USD per year, and for your retirement goals you have allocated 6,000 USD, then that money will be deducted every year from you. The government gives tax leniency for 401(k) plan. From the example, you are only required to pay income tax on 54,000 USD.

Establishing your own business

EntrepreneurThis plan will be quite risky to do, but if you start early, you can overcome all the risks. Try to build a business when you are still in your productive ages, which is anywhere from the thirties to forties.

Start small, and do not leave your main profession, unless you are confident enough with your skill and financial condition. The goal is to nurture your business so that once you reach the retirement age, you can reap all the profits.