Credit Repair Questions & Answers

Budget and Savings

You suggested that I set up a budget. Can you tell me how to get started?

A budget is the perfect companion to your credit repair program. Many poor financial decisions are made simply because of a lack of information. Think of a budget as a process of gathering information. Read More »

I’m in your credit repair program and understand the importance of starting a savings account, but I can’t seem to get ahead. Do you have any inspiration for me?

A savings account is the perfect companion to your credit repair program and you are right to be thinking about it. A savings account will provide a buffer when unexpected expenses come up. If you don’t have a buffer you may end up using a credit card to make up the difference, or falling behind on your payments. Read More »

Do you recommend any books on budget and savings to your credit repair clients?

We have been recommending George Clason’s book, The Richest Man in Babylon to our credit repair clients for years. In fact, we buy the book from the publisher by the case and send copies to members of our credit repair program whom we feel will benefit. Read More »

I would like to create a savings account as part of my credit repair program, but it is really hard to find money to save. What can I do?

Many of our credit repair clients express the same feeling. It can be hard to find extra money to set aside as savings. The best way to get started with savings is by getting organized. It is very difficult to find money to save without a comprehensive and detailed perspective on your own finances. Read More »

Credit Repair and Budget and Savings

A thoughtful and realistic budget and savings plan is the perfect complement to your credit repair program. If you want real lasting credit repair results you must protect the progress that you have made. You cannot afford to let an unexpected event turn into unmanageable financial trouble. A savings plan will allow you to build a cushion against unplanned expenses. And a budget will insure that you have the room in your monthly cash flow to contribute to your savings plan.

We recommend realistic budgeting to our credit repair clients. We have noticed over the years that many poor financial decisions are made simply because of a lack of information. Any purchases made on credit should be made in the context of your overall financial ability. A written budget will put all of your expenses in perspective.

It’s not hard to construct a budget. Get a new pad of paper and clean off your desk or kitchen table. You want to be as organized as possible. It will also be helpful to have your bank and credit card statements handy. Write down all the expenses you can think of. Omit nothing, from your big monthly expenses to your little daily incidentals like lunch. Everything counts. Also be sure to include any periodic outlays like insurance that might be billed quarterly. You can calculate a monthly amount by figuring the annual costs and dividing by twelve. Once you have thought of everything you can take a look through your bank and credit card statements to see if you have missed any categories.

Add up all of your monthly expenses and compare the total to your monthly income. If you have room to move you are in good shape! But if your expenses exceed your income you will need to make adjustments. You may be able to keep up with your expenses by tapping your credit cards, but in the long term your budget must balance or you will find yourself in a jam and your credit repair progress will suffer.

Once you have found a way to balance your budget, add a new category: savings. You pay everyone else, now it is time to pay yourself. Pick a manageable amount, an amount that you can comfortably contribute to a savings account each month. Make this contribution a budgetary priority. As you did when you were building your budget, adjust your obligations so that you can make this savings contribution each month. As your savings cushion grows you will also find your confidence growing. And your credit repair progress will be safe and sound!

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