Generational Credit Solutions

Most of us will experience periods where we have extra money and must decide whether to pay off debt, if any, or invest the money.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Debt can be categorized two ways...high interest and low interest.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Credit cards are considered high interest and it would warrant paying those down first. Then, you can move on to the low interest, which are investments.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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"Think about it like this. If all you have is $25,000 in credit card debt, the problem isn’t the debt itself so much as it is the $7,500 per year in interest expense you would owe the bank if you had a 30% APY. That is $625 per month in interest expense that you must pay toward your credit card debt without every paying off a penny of the principal. That is money you could have been using to buy high quality dividend stocks, invest in bonds, purchase shares of your favorite mutual fund, use as equity toward the acquisition of an apartment building, or even spend on a vacation for your family each year."

You choose a loan when you don’t have sufficient finances to meet your necessities...⠀⠀⠀⠀⠀⠀⠀⠀⠀
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I recommend writing your debts down and paying them with a purpose and a plan rather than running to get a loan. If your debt is leading you to a loan...you've got bigger problems that need to be addressed by either cutting down your expenses or creating more income.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Start with your written down debts and tackle the one that has the lowest amount owed, pay it off and keep the train going. You'll feel more accomplished and it will be easier to stick with the plan.

Every financial planning and personal finance book you'll read advises starting a rainy day fund. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
Some advise a fixed dollar amount, others say 3 to 12 months of income.. Still others suggest a certain number of month's living expenses.⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
So…⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
How much money should you save for financial emergencies?⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Well… According to Wallace D. Wattles, author of "The Science of Getting Rich"...⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you truly want to be wealthy… None.⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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That's right… Absolutely none!⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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In an article titled "The Constructive Attitude", Wallace D. Wattles wrote:⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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"... do not lay up for a rainy day. If you live right, think right, and work right, there will never be a rainy day for you. If you lay up for a rainy day, you will impress the subconscious with the fear of a rainy day; with the idea of weakness and incompetence, and so you will cause the rainy day to come."⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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If you stop and think about it...⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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He's right! Does this mean you shouldn't keep any extra money at all?⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
No!!⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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In the same article, Wallace D. Wattles wrote:⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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"... provide a surplus, so that you may take advantage of any new opportunity..."⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Once I began to build up a surplus to take advantage of new financial opportunities, instead of saving for financial emergencies, guess what happened then?⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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New financial opportunities started popping up all over the place… The financial emergencies disappeared!⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
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The Law of Attraction makes your life into the exact image of whatever you focus your attention on most.

One of the biggest contributors toward personal peace is financial peace. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Most assume that financial peace is only for those with lots of money, but in reality, you can be financially secure at almost any income level. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Avoiding common financial mistakes is the first step. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Common mistake #1. I'm Too Young to Settle Down⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Not investing in a home or buying one too late in life is a mistake that more and more people are making. (You can AirBNB your way to the top. Investing in a home doesn't always mean one you live in...rent one out!)⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Common mistake #2. But It Was On Sale!⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Accumulating debt instead of savings is the next financial error to avoid. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Unless debt can almost guarantee you a future return, such as investing in a business, education or your home, it is best to avoid altogether. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Even purchasing automobiles with cash is better financially in the long run. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Common mistake #3. Do You Accept VISA for my Mortgage Payment?⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Not having any liquid savings is another area that can end up hurting you financially. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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The minimum amount to be saved is 3-6 months of living expenses. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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This will help to cover loss of income or medical emergencies that may arise. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Common mistake #4. I Have Plenty of Time to Save⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Not saving for retirement is a mistake that is made all too often. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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If you do save, there is a good possibility it is not enough to retire on. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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So, don’t make or stop making those mistakes. It may take some time to change your habits and actions, but it will pay well in the long run if you do.

Many people that go to college never expect to graduate and suddenly have big expensive debts. Now they, of course, are responsible for paying them back. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Debt can build up before you ever notice.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Paying back student loans can be very scary but knowing what to expect if that time comes is always better.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Creditors can be extremely pushy whenever it comes to collecting their money but avoiding them is only prolonging the inevitable. Especially if you keep your loans in deferment! And you and I both know that is never going to completely fix anything for you in a positive manner. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Make sure you know all of the terms and conditions so that everything is completely understood when taking the loan.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Your future could be brighter by taking some simple steps in planning and preparing more efficiently.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Having a financial plan is always crucial when determining whether or not you are going to be able to live by your means or end up struggling severely down the road because of your debt. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Make sure that you start saving money during college and planning for that time whenever you do finally graduate because that is the moment of truth and the time in your life where you will be responsible for paying back any student loans that you acquired during those years.

Thanks to the constant stream of the credit card offers you receive in your email or through text messages few people understand that there are viable alternatives. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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So, here are four of those alternatives. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Debit Cards ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Debit Cards are just like credit cards and are accepted in most places where credit cards are accepted. The biggest difference is that they take money directly from your bank account rather than you getting a bill at the end of the month.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Prepaid Cards ⠀⠀⠀⠀⠀⠀⠀⠀⠀
These cards work just like credit cards, except that you're not allowed to carry a negative balance. You deposit money into your card account before you can spend it which means that you ‘top-up’ the card... like you do with prepaid cell phones. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Traditional Loans ⠀⠀⠀⠀⠀⠀⠀⠀⠀
When you plan on purchasing a single big item at a fixed price - like a car or for home improvements it’s worth budgeting it all out and going to a bank or other type of lender. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Credit Unions⠀⠀⠀⠀⠀⠀⠀⠀⠀
Credit unions are like banks, only more local. They are cooperative, owned by their members and run by the community, and are a great place to borrow money. So it’s a solid alternative and well worth looking into if there’s one in your area.