Credit
the ability to borrow money or to purchase goods
and services with payment delayed beyond delivery
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The most optimal use of credit occurs when you borrow money when you really don't need to. That is when you've saved enough money to pay cash outright. This may seem foolish, but it's an old line from lenders who tell us that people who don't need to borrow as much, because they have more cash to put down, are the most creditworthy clients that they have and get the lowest interest rates and best terms.
We think we’ve identified three critical factors that determine how successfully an individual will withstand the effects of a wealth hazard that they've encountered. Many people will find this approach useful in their attempt to deal with these difficult times. The three factors are how to Avoid, Manage, and Recover from the effects of a wealth hazard.
Please explore our website and our new book and contact us via Ask a Question if you have any comments, questions or concerns.
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· Identity Theft
· Too much debt vs. your income level
· Using the wrong types of credit
· Paying high interest rates
· Credit bureau reporting errors
· Overuse of home equity line of credit (HELOC)
· Not getting debt counseling soon enough
· Get more aggressive in negotiating with creditors
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