Credit Habits

Think of your self as a tree. Your knowledge, preparation and wisdom being the root of the tree. The leaves are the results of the things that you did with all that knowledge, preparation and wisdom. Before you plant your tree you need to make sure the soil is perfect (the soil equals your plan for life and your goals) there are many things that need to be done to assure your tree will have the best foundation in order to get the maximum growth.

If you do not prepare by fertilizing, watering and nurturing your tree. Your tree will never start off right and will never withstand what nature will through at it. The preparation and nurturing is equal to your habits. Habits become a part of your future.

Credit is your credibility to repay a debt. If your foundation wasn’t laid down properly, you will wind up with Bad credit. Picture your self being a tree again, an unhealthy tree. I would imagine your vision is similar to mine. This tree has no leaves and the bark is rotted. The leaves are gone, blown away in the wind. When you have Bad Credit, you are throwing your money away! 15 to 25 percent! Your insurance is higher, your interest on your car payment is higher, all your unsecured credit cards and mortgage payments are higher. Your creditability is worthless.

Habits can be broken, it’s a matter of making changes in your life, making a choice to get the knowledge you need to make better choices. There are plenty of great books available to gain the education you need to change you belief system around and form better habits. If your foundation was laid properly you would have been able to save 15 to 25 percent instead of giving it away. That’s right, you gave it away!.

Lets look at two persons that work at the same place with the same position. One of them prepared for his/her future while the other one didn’t. One of them put away 10 percent of their income away every week while the other one spent beyond there means. One of them had six months of monthly expenses in an emergency account while the other was borrowing money from his/her parents to fix the brakes on their car. One of them invested in a 529 college fund for the kids to go to college while the other ones children couldn’t go at all.

When you don’t lay down proper foundation you will wind up living beyond your means and falling deeper into debt. If your debt becomes to overwhelming you will start to fall behind and in most cases not pay some creditors back at all. This is when the leaves have all blown away. Your creditability is gone and no one will lend you money. Even if they did lend you money it would be at a ridiculous interest rate. This is the point in life that 15 to 25 percent of your money becomes a gift to your creditor. This is also when your credit score hits the all time low.

Credit can be repaired, but you need to change your habits. While your cleaning up your credit you also need to learn how to live within your means and save money. Until you make better choices you will continue to be a slave to debt and to people. Remember two people could make the same money and have the same expenses. One will live peacefully with little concerns about their future while the other will stress out everyday thinking about their future. Who will you be?

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