Small Business Loans

In the last article in this series I described how long different marks remain on your credit report. I wrote that mistakes will be removed instantly, soft inquiries will have not have an effect, and hard inquiries can hang around on your credit report for two years. Late payments, on the other hand, have the capacity to do way more damage.

Despite the fact that some creditors may choose to show you mercy and remove past credit problems if you pay your account immediately, late payments can have an effect on your credit score for seven years. Luckily, these negative marks are common and do less damage to your score than the rest of the marks I will go on to discuss.

With a tax lien comes seven years of poor credit. When you don’t pay your income or property taxes when they were due, and the government comes in and claims ownership of your property, you’re dealing with a tax lien. Unlike creditors, no matter how fast you settle your tax lien, big brother is peeved that you made him go out of his way to take your property, and it will stay on your record for seven years.

Foreclosures are equally as damaging and they will be on your credit report for seven years. Foreclosures are looked at as one of the worst negative accounts that can appear on your credit report. In fact, if you do have a foreclosure on your credit history, good luck buying another home unless you are planning to pay for it all in cash.

It is not the good old days anymore, so don’t default on those student loans either. Before the administration of President W., student loans usually were forgiven if they were declared when someone filed for bankruptcy. Now things have changed, so it’s crucial to pay your student loan debts. After 270 days of nonpayment, defaulting occurs, and before the loan defaults, you can bet your life that you will be the unlucky recipient of a whole slew of late payment fees.

The last, and most serious negative mark that can go on your credit report is bankruptcy. Bankruptcy will stay on your record for ten years, and instead of having a creditor pull your report, you might as well get in contact with them and say “I am fiscally irresponsible and will be that way for the next ten years.” Filing for bankruptcy can put a damper on your ability to get a new car, any type of new credit or a new place to live. So watch your credit report, or you might end up living with that rude mother in law I wrote about in article one.

Mallory Megan works for Rapid Recovery Solution and writes articles on new york collection agencies. This article, How Long Will A Negative Mark Stay On My Credit Report Part Two is available for free reprint.

Personal debt can be extremely stressful and has the capacity to become a big problem that needs to be addressed. Logically, the fastest way to get yourself back on track is to stop spending money. First, don’t carry credit cards in your purse, only debit and ATM. Write checks, and pay cash. It can be awfully tempting to spend money that you do not have, but if you don’t have the means to do so, you won’t. If there is a special occasion, like a holiday, vacation, or an anniversary, create a specific fund for it so you don’t spend more money than you intended to on it. Late fees can add up. To avoid this hassle, pay credit card bills on time. Don’t make more than one ATM visit a week, and if you can’t pay it in full at the end of the month, don’t run up a bill. Rally up emotional support and put your money where your mouth is (pun intended) by telling your friends what you are trying to do.

Try to think outside of the box. Barter for goods and services utilizing your gifts, skills, and talents. Have swap parties where you and your friends exchange items like clothes, shoes, handbags, household items, and the like. These can be fun and useful at the same time. Don’t be taken in by credit card offers like airline miles, or seduced into opening new credit cards at retail stores simply to get the discounts. Instead, use the trusty “envelope system” and only spend money that you have put away in advance. If it helps, pick an “accountability partner” to help you stay on your course. Remember that you have a choice in how you spend your cash, so having a plan in place can be very empowering.

Each month, develop a new spending plan that details your estimated monthly expenses. Try to finish it fifteen days before the month begins. That way when you follow this time line, if you have a period where you have more money going out than coming in, you will have the time to cut expenses or grow additional income.

Here’s a simple formula for devising your spending plan. Look at your calendar and take note of any special events that might cost money. Finish your spending plan by trying to estimate your upcoming bills and other needs for the month. Adjust the payments accordingly to determine the minimum amounts that can be spent without creating a feeling of deprivation. Include an amount for savings so that you have a resource available for emergencies. Attempt to figure your cash flow. What is the amount left over after you subtract the total expenses from the net income you will have for the month? Keeping Murphy’s Law in mind, add on an extra ten percent to the spending plan once you have finished it. If something goes wrong, like car problems or getting hurt, this number is realistically, what you are going to spend. Any remaining cash can go to your debts.

If you receive more than one paycheck monthly, determine which bills to pay from what paycheck. Note the due dates on your bills and write them down on a calendar. Then pay as many bills on time as possible from every paycheck. Remember that fine tuning your spending plan is a complicated process. If your plan doesn’t work at first, it doesn’t mean you should give up! If anything, that should give you more motivation to adjust the plan and determine how to make it work to accomplish your goals. Also, just performing this exercise will make you more aware of how you choose to spend your cash and how motivated you are to pay your debt off, so it can’t hurt either way.

Mallory Megan works for Rapid Recovery Solution and writes articles about commercial collection agencies. You can get a unique content version of this article from the Uber Article Directory.