A Healthy Challenge

Many people are put off by the idea of setting up a budget. And among those who are looking for quick credit repair results, the idea of reigning in spending sounds like a grim austerity measure. And yet, done properly, budgetary discipline will not only insure your credit repair success, but prove to be quite satisfying, even fun.

Short Term vs. Long Term

It is true that with or without financial discipline, credit repair can deliver useful results. But, it is equally true that in the long run your credit scores depend entirely on your ability to manage your debt. You may find a way to reduce your account balances, thereby bolstering your scores, but without some budgetary savvy, a prolonged period of spending in excess of income will prove to be ruinous.

Two Major Factors

Your credit scores hinge largely on two important factors, your timely payment history, and your account balances relative to their limits. Failure to pay your bills on time will cause serious and prolonged harm, while failure to keep your balances low is quite curable; though millions struggle do so without success.

Overcoming Fear

In spite of the difficulty many people have managing money it is quite achievable with the right approach. And the payback, related to both credit repair and life, will be significant. As already hinted at, it starts with a budget. If the thought makes you sweat, try to re-imagine the concept as a game. Real life Monopoly.

Getting Organized

Set aside an hour or two. If your finances are entwined with a partner, bring them in on the process. Collect the most recent several months of bank and credit card statements and sit down with a clean pad of paper, a pen and a calculator. Your goal is to list everything you spend money on, from the big items to the daily incidentals.

Get to Know Your Spending Habits

Go through your bank and credit card statements to make sure you have caught everything. Once done, take a bit more time and try to categorize items into groups. Figure out your monthly obligations. List your recurring discretionary spending too. Become acquainted with your spending habits. If you want long term financial and credit repair success, this stage of the budget building is critical.

The Moment of Truth

Now it is time to compare your expenses with your income. Many people are surprised to discover that they spend more than they take in. This type of deficit spending is the very reason many people end up in credit repair programs. If this is true of you, now is the time to achieve some balance and find a way to spend less each month than you take home.

Pain Free Adjustments

There are many ways to balance a budget. One of the nice ways to cut expenses with little or no pain is to eat home more often. There are so many ways to make eating at home fun. Try taking a cooking class. Challenge yourself to make different ethnic foods. Invite friends for covered dish parties.

Getting Creative

Look carefully at every expense and see if there are ways to cut costs. Be creative. Set a goal of having enough money left over each month to make a contribution to a savings account. A savings account will create a buffer against unexpected expenses and insure your credit repair results. Good luck!

Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.

Author Bio: Jim Kemish is the president and founder of Sky Blue Credit Repair, a leading credit repair service. Sky Blue Credit has been dedicated to providing intelligent customized credit solutions since 1989.

Category: Finances
Keywords: credit repair, credit repair services, credit report repair, credit scores, bad credit