You don't look forward to tax time, but it's a great time to focus your financial efforts.
1. There is no better time than NOW
Why wait a day longer to start repairing your credit, the sooner you begin the sooner you will feel the benefits. Not only will your FICO score rise when you begin to repair your credit, but by paying off debts or getting current on outstanding bills, you will be saving yourself interest payments in the future.
2. You are already looking into money issues
While you are already in the money mindset, why not take some time to more thoroughly review your financial situation and create a plan.
3. Using your tax return to repair your credit will give you a head start
Your tax refund will likely be a larger amount that you could apply towards debt in a normal month. Taking the larger chunk of money you receive from your tax return could put your months or even years ahead of the position you would be in if you continue to muddle along.
4. By setting a little bit aside now, you are saving yourself in the future
Do you have an emergency fund? Do you need one? For most people the answer to the first question is probably no. And for most, if not all people, the answer to the second question should be yes. An emergency fund is a small amount of money that is set aside for use in case of an emergency. It is a small buffer (some suggest $1000 to start) so if an unexpected expense comes up you don’t have to rely on your credit cards to pay for the unexpected costs. This means you are less likely to take backwards steps on your credit repair journey.
5. You put yourself in a good position to continue your credit repair journey
By eliminating a large amount of debt, catching up on overdue bills or setting aside a small emergency fund at the beginning of the year, you are setting yourself up for success.
6. You will free up money from your monthly income
By using your tax return to get a jump start on the credit repair journey, you will be eliminating some expenses that you would otherwise have to take out of your monthly budget. Aside from increasing your income, paying off debt is the fastest way to increase the amount of disposable income you have available to you to spend as you want. All or part of this new disposable income can then be applied to your debts following your credit repair plan.
7. Your new found disposable income can be applied to debt
This will help you get out of debt and you will complete your credit repair journey faster.
8. Negotiate the cost of utilities and other bills
As a consequence of your credit repair journey, and your FICO score grows, you will be in a much better position to negotiate with your utility provider or other lenders for lower package prices, or interest rates (such as your mortgage interest rate). This will, in turn, add more disposable income which can then be applied to other debts, following your credit repair plan.
9. You will be a more appealing tenant or employee
Having great credit may mean you are the front of the queue when landlords are looking for new tenants. Or what about the employer who checks your credit. By creating and following a credit repair plan you will be working towards having a great credit report and solid FICO score. As a result of following your credit repair plan, you will be a great candidate for rental tenancies, employment and more.
10. You will be a much happier person
Imagine not having to worry about how you will pay for your rent or mortgage, or how you will put food on the table. Imagine having sufficient money in your budget that you can now afford to save for Christmas all year long, rather than start paying it off the following January. Imagine getting a tax return and not owing a cent to any body else.
All of these things can happen as a result of you starting to repair your credit this tax season. Why wait. You can be happier sooner, if only you act now! Begin your credit repair journey this tax season. Doing so will not only set you up for a better year, it will set you up for a better LIFE.