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February 16, 2023

4 Smart Hacks to Fix a Bad Credit Score

It's no secret that having bad credit can be a serious obstacle when it comes to money management. Whether you're trying to buy a house, purchase a car, or simply apply for a credit card, bad credit can be a major obstacle to achieving your financial goals. Fortunately, you have options with bad credit, so even if your credit isn't the best, you can still move forward with your financial goals.



1. Create a budget

One of the most important steps you can take when you have bad credit is to create a budget. A budget will help you get a clear picture of your income and expenses, and it will also help you make sound financial decisions. When creating a budget, be sure to track all of your expenses, including things like groceries, rent, and utilities. You should also track your income, such as your salary and any side income you may have. Once you have a clear picture of your income and expenses, you'll be able to set realistic goals and make decisions that will help you improve your financial situation.



2. Improve your credit score

Another option when you have bad credit is to work on improving your credit score. One of the best ways to do this is to pay off any existing debt. Start by paying off the debts with the highest interest rate first. This will help you save money in the long run, as you'll be able to pay off the debt more quickly. It's also important to pay your bills on time every month, as this will help your credit score over time. You should also be sure to monitor your credit score periodically so that you can catch any errors that might be dragging down your score.



3. Consider debt consolidation

Debt consolidation is another option if you have bad credit. It means you will take out a single loan to pay off multiple debts. This can help you save money in the long run, as you'll be able to pay off your debts more quickly and with a lower interest rate. However, it's important to be careful when considering debt consolidation, as you'll be taking on more debt and you could end up in a worse financial situation than you were before.



4. Build an emergency fund

Finally, another option when you have bad credit is to start building an emergency fund. Setting up an emergency fund is one of the smartest financial moves you can do. But what is an emergency fund anyway? It is a savings account that you use to cover unexpected expenses. This can help you avoid taking on more debt in times of financial strain, and it can also help you get back on track financially. Start by setting a goal for how much money you want to save, and then work toward that goal each month.



No matter what your financial situation is, you have options with bad credit. From creating a budget and improving your credit score to debt consolidation and building an emergency fund, there are several steps you can take to improve your finances. The key is to stay organized and focused on your goals, and you'll be able to get back on track financially.


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January 15, 2023

How to Save Money Even Amid a Soaring Inflation Rate

Inflation can take the worst out of your budget and it's not something that is easy to deal with. Last year in October, the  Philippines’ inflation rate spiked to a nearly 14-year high of 7.7% in October. According to the Philippine Statistics Authority, the inflation in the Philippines went up even higher at 8.1% in December 2022 from 8 percent in November, bringing the full-year average to 5.8 percent, according to the Philippine Statistics Authority.


This boils down to higher prices of goods including basic commodities. What this means for us is that we have to be a lot more strategic in the way we spend our hard-earned money. Besides, even if the prices of goods soar, ordinary employees' salaries are remaining stagnant. 


In this article, I'll share with you some of the budgeting tips I do in order for me to save money amid inflation. These tips are my own and I do not claim to be a money expert. 


how to save money during inflation

Tips for saving money during inflation

Wondering how to save money during inflation? Here are some tips:

1. Set a monthly budget

Every month, I make sure that I set a budget and list down all the expenses I need to spend my money on. Having a spending plan allows me to anticipate how much I'll spend on the needs and how much I can allot for the wants. This also enables me to estimate savings for the month. 

2. Shop smarter

Living independently is not new to me. I've experienced this since I was in college. But now's a bit different because although I work from home, my expenses are higher than ever because I pay for so many things, from car and house utility bills to my own grocery. I'll be honest, this is the only time I became so affected of the rising prices. Imagine, one kilo of onion here costs PHP 600 (USD 10+). 

While I can't control the prices of goods, I can control how I spend my money. What I do is that instead of buying vegetables at the grocery store, I go to the public market. Goods in the public market cost almost 50% less than in the grocery stores. 

Also, I make sure that I always have with me my loyalty cards that I can use every time I shop. Because many malls and stores that offer this perk allow its customers to earn points that are good as money.

3. Cut unnecessary subscriptions and fees

In this day and age, streaming services are a bit of a staple to every household already. Gone are the days we rely only on cable TV. We have Netflix now. Gone are the days we listen to free music on the radio. We have Spotify now. But these new online services don't come in free (for the most of it). 

Spotify subscription fee may not seem much but PHP 149 (USD 2.8) a month adds up to PHP 1,788 per year. I can use that annual fee for a sack of rice that will keep me full for months. What's a 30-seconder ad for a month of stuffed stomach. I can sacrifice those repeatedly ads. 

4. Invest

Some people might raise their eyebrows at me thinking what the hell I'm thinking for investing a part of my money when I'm facing higher monthly costs. This might seem the wrong time to invest but we can do it smartly and carefully. After all, the point of investing is to help us beat inflation. 


Bottom line

This continuous rising of inflation rate makes budgeting a lot more challenging. Spending your money in the most responsible way goes a long way. While identifying the unnecessary expenses you can cut every month can also help you save money, we can also look for other ways to save. Finding ways to grow our income also helps.

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August 8, 2021

Understanding Debt Consolidation: What It Is and How Does It Work

When you are struggling with a pile of credit card debts, car loans, medical bills, or student loans, getting out of debt isn’t that easy. The longer you let it sit, the bigger your debts grow which could make you unable to control it. If you own a small business or are an individual trying to start a business, having people who owe you money can put a serious dent in your finances. There are efficient solutions for tracing debtors that you can utilize in the form of private investigation services, that can assist you in regaining outstanding debts owed to you by others, in order to reduce your own debts. Remember to do your research in these circumstances, and hopefully, you will be able to get back the money you are owed.

 

On the other hand, the good thing is, there are many ways to get out of debt that will not make you any more miserable—one of those is debt consolidation. This kind of financial strategy will help you decrease it until you’re free from debts.


What is Debt Consolidation?

Debt Consolidation | A girl in debt

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According to Debt.org, debt consolidation is a sensible financial strategy for consumers who are stuck with credit card debt. It can be done with or without a loan. It merges multiple bills into a single debt that is paid off with a consolidation loan or a debt management plan. 


In short, debt consolidation cuts costs by lowering the interest rate on debts and reducing monthly payments. But let me be clear here, debt consolidation does not mean debt elimination. 


This financial strategy reduces the interest rate on your debt and lowers monthly payments, and makes the payment process easier for consumers who are trying to keep up with multiple bills and multiple deadlines from multiple card companies every month.

How does Debt Consolidation work?

NerdWallet says that there are two primary ways to consolidate debt:


  1. Get a 0% interest, balance-transfer credit card: With this strategy, you will transfer all your debts onto this card and pay the balance in full during the promotional period. For you to be qualified, you need good or excellent credit.


  1. Get a fixed-rate debt consolidation loan: Through this strategy, you will use the money from the loan to pay off your existing debts, then pay back the debt consolidation loan in installments over a set period of time. You can qualify for a loan if you have bad or fair credit. However, borrowers with higher scores will likely qualify for the lowest rates.

Is Debt Consolidation worth it?

There’s no one fixed answer to this question as it actually depends on your needs and your capability of paying your debts. But here are the factors to consider before getting your debts consolidated according to the experts Dave Ramsey and NerdWallet:


  • Your monthly debt payments don’t exceed 50% of your monthly gross income.

  • Your credit is good enough to qualify for a 0% credit card or lower interest rate you currently have.

  • You have a consistent cash flow that covers payments toward your debt.

  • There’s no cost to consolidate.

  • Your repayment period will not be longer than the one you have now. 


Struggling with debt can really take a toll on your financial, physical and mental health. The one rule of thumb is that, don’t borrow money if you know you can’t afford to pay it within the given term. 


For more details about debt consolidation, visit www.debtconsolidation.com.


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