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Now of course multiply that figure over five years and you will have a nice little bank account started. The prediciment you may fall into is the temptation to pay yourself last. Do not fall for it. Yes it is difficult and frustrating, however in the grand scheme of things you are just as important as your creditors. Plus should you ever have an emergency you have the means to pay for it. Another way to protect yourself from a credit crunch is the obvious. Do not use credit cards. However, as they do come in handy for emergency situations your goal should be to limit their use. Also using them wisely whereas you can pay off the balance in one or two months time will afford you the luxury of not paying enourmous interest fees. Never just pay the minimum amount due. When you do this the only ones that benefit are the card companies and you are still stuck with a sizable bill. Rethink your mortgage loan. Ask yourself if you have enough equity in your home to be able to remortgage at a lower interest rate. Be sure not to get caught up in the adjustable rate mortgage however, as that could turn out to be a skunk. Also consider a home equity loan to consolidate all your outstanding credit debt. Typically you will receive a better interest rate and you could start fresh by keeping only one credit card for purchases. Consider also a medical savings account. Put $10.00 away per week into an account specifically designed for medical purposes. These types of expenses oftentimes catch people unaware and leave them scrimping to pay off a co-pay or the unpaid balance after the insurance claim. Protecting yourself financially does not have
to break you. The credit crunch has the ability to accomplish that goal. Take
action to avoid living from paycheck to paycheck and follow some simple steps
and protect yourself from a credit crunch. |
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