Unemployment and poor score- How to repair your credit and get back on the right financial track?
Unfortunately, the growth in the US service sector is stagnant from September as the firms hired only a few number of workers. Since the recession, Mr. President has focussed on the job growth. But the quarrel between Obama and the Congress is slowly killing the job market. Some of the major reasons are the debate about the stimulus in 2009, the federal budget and debt ceiling have paved the path for political uncertainty for entrepreneurs, banks as well as consumers. Now, the businesses are actually cautious to invest as well as hire.
According to the chief economist Mark Zandi, the unemployment rate would have been around 6.6% now, only if political uncertainty had not increased since 2007. However, the unemployment currently stands at 7.3% in the US.
The number of Americans seeking unemployment benefits is near about 308,000. But due to the government shutdown the application for the unemployment benefits may increase. This is because the defence contractors as well as other companies that do business with the company may temporarily lay off workers. Federal workers who are temporarily laid off may file for benefits as well, so the number of people seeking benefits may increase.
However, in this scenario, a positive financial background may help to attract the employers and protect you in time of financial crunch. Here are some of the important points that you’re required to consider if you want to repair your credit and prevent future damage to credit score and strengthen your financial state.
1. Avoid splurging: When you’re planning to repair your credit report start with saving that extra cash in the wallet. Make sure you stick to the necessities and avoid splurging your hard earned money. It can be only possible if you prioritize your spending and know where you’re actually draining your money. If you’re unable to control your expenses, then prepare a budget plan to keep a tab on it. Your credit score may repair if you use your saved amount to pay off your outstanding balance. Once you pay off your credit card debts, you can manage to build an emergency fund that can help you in time of emergency.
2. Benefits of discount coupons: You can take benefit of discount coupons as clipping coupons are considered to be a great way to save for groceries as well as supplies. This is one of the effective ways to save on the monthly grocery bills. If you get discount on bulk products, then it can be a profitable deal to buy the required stuffs, and at the same time save money. You can use the saved amount to pay off your other household bills.
3. Plan for your financial future: If you’re planned and prepared for the worst, then you can tackle worst of financial situation. Well, it’s not an easy task, you need to practice to master the art of planning for future. You can start with saving your hard earned money by following a pragmatic budget plan. Your next step is to make more money by giving a room of your apartment on rent or start a small home based business without any upfront investment. Apply for a secured card to repair your credit but without getting back to the debt maze. A secured credit card can help you become financially more responsible, and help you get back on the right financial track.
Therefore, you can start repairing your credit as well as strengthen your financial state with the help of the above mentioned points. In this tough economic scenario you should focus on saving money and avoid the use of credit as much as possible.
This is a guest article by Anjelica Cullin.
Originally posted 2013-10-07 17:19:11.