Credit monitoring & identity theft protection | CFPB & FTC

Category: Personal Finance

Pros & Cons of Personal Finance

No point trying to implement an aggressive credit repair when the first step of self-improvement doesn’t exist. Before diving into highly effective debt management solutions, ask again, what went wrong during the process of a credit fix or clean up. There is a high chance of you not managing your personal finance to an ideal standard.


Good practices are demanded in today’s sophisticated credit world. Several financial crises had disabled bank’s easy lending policies, tightening of global financial regulations (mainly Basel III standards), and data transmission across borders. Your lenders may be bounded by domestic jurisdictions albeit wanting to issue out more loans for higher profits.


Pros of managing personal finance

Looking to rebuild your credit history in an organic manner, this is where management of personal finance steps in. It does incur a small amount of money but lesser than what many credit repair companies or debt consolidation agencies charged. Currently, your lenders perform timely credit reviews and inquiries to check on your updated credit report hence the need to pace up your growth in payment history & debt management techniques.


1. Organize monthly budgeting & analysis.

One distinctive advantage of indulging in personal finance is monthly budgeting. Forecasting is an important aspect of fixing your current & savings accounts. Although there is no right or wrong way in handling a monthly expenditure budget, having a fixated framework does elevate financial stress levels in the long run (best if done for the entire year instead of one month).


A spreadsheet, likely an excel file or a mobile budget app, aids you in breaking down the necessary expenses while separating out the wants from the needs. In fact, you’re already taking control over unwanted personal expenses that might be eating into your credit lines and resulting to a decrease in credit score.


Here are some of the items separated for good to your personal finance portfolio:


Hopefully, your existing personal finance portfolio is in good shape. The above table titled “My Personal Finance Portfolio” seems to be off-mark for a good borrower. Financial institutions like banks want to take upon consumers with lower risk profiles as well as having the ability to make debt repayments on time. A bad credit report is not what any lenders are looking out for, be it some credit dispute errors or long-term liabilities.


2. Proactive identify financial constraints.

After performing a detailed credit check on your personal finance portfolio, focusing on the needs and wants of your lifestyle, it’s imperative to adopt a proactive attitude in identifying high probability financial constraints. This is a form of financial planning & forecasting in advance of financial problems arising near future.


Some high probability financing problems that might arise near future are:

  1. Insufficient personal savings – you might be busy sending money all over the place except your savings accounts.
  2. Payday loans – getting a payday loan is not difficult, financing the interest of payday loans is.
  3. Overpaying in interests – be it credit cards, auto loans, or mortgage loans, you’ve to take initiatives in negotiating for better financing interests.
  4. Bad credit report & credit score – no one will provide better rate of interests if your credit score report is bad or filled with negative info and objects listed.
  5. High installment plans – costly items such as furniture or an auto have to be planned in advance before rendering a purchase agreement.

What these potential financing debt problems are consolidated to make you have an assurance on repairing credit in advance of them. It’s not a guaranteed way of avoiding financial risks but definitely reducing the exposure to such inherent risks. A good attitude towards handling your personal finance mix will lead to a long way of improving your credit score.


3. Induce creative thinking in boosting income.

Another advantage of listing out your monthly expenditure is innovation. The table above revealed many expenses and few income earnings. It should be the other way around if you’re looking for ways to be financially free before the recommended retirement age (approximately 65 years of old age). Do not think of this mission being impossible as bolstering financial productivity curvature begins from you!


Here are some creative ideas for you to boost your personal income earnings:

  1. Invest in a real estate – duplex, triplex, or any super-plex does generate a stable monthly rental yield for you.
  2. Sell a product or service – freelancing is a new “thing” in today’s contemporary setting to earn a quick buck.
  3. Work part-time – remember to contact your HR department and inform them on your ongoing work outside of current job scope.
  4. Ask for a pay raise – another good way of boosting income earnings without much efforts at your end.
  5. Set up a small business – if your relatives or family members can help, it be good to set up a small business or outlet store to sell goods (apparels, accessories, massages etc.)

There are many ways of increasing your monthly incomes. No, the difficult part is on the behavioral aspects known as laziness. Overcome laziness by reviewing your financial portfolio and debt portfolio on a daily basis. This will provide some guidance and strength in handling those bad debts deal at the end of next month – don’t forget interests being compounded on a daily basis too!


Online creative ideas or highly proven income-generating strategies can only motivate you that much. The remaining part of “fire” is based on your intrinsic motivations and what drives you to managing your personal expenses the right way. Being in KIG Hall, you’re already demanding an improvement in your lifestyle so why did you stop here?


4. Build a long-term strategy in asset-liability management.

In today’s world, there is no one-size-fits-all asset management and liability management strategy for you. No two individuals possessed the same credentials. It’s our uniqueness in credit consumption that made our debt management techniques different, not having the same set of unpaid liabilities, interests servicing, or any forms of repayments.


Here are some useful tactics & strategies in handling your personal assets and liabilities:

  1. Build a financial plan – this initiative has to be retirement driven, primarily to be able to survive without an active income.
  2. Reduce your liabilities – it’s difficult to acquire new assets to build up, but easy to terminate lines of credits and paid subscriptions.
  3. Increase your assets – an uphill task in asset management, but the rewards are bountiful in ensuring a smooth transition for retirement planning.
  4. Signup for an endowment plan – call your bankers for an endowment plan or endowment specialty companies for a customized one.
  5. Offset your interests with dividends – one of the best way in maintaining a consistent income without needing to pay for interest expense.

Understanding the importance of managing a long-term strategy in rebuilding your payment history is necessary. Yes, it does take time in generating an income over the span of several years but the endeavor to financial freedom is the key driver in making you do this. It’s not easy to manage some debt portfolios let alone some revenue-generating assets in this dynamic market.


Notably, a long-term financial planning gives you a quality control for your future family members in terms of financial security and economic prosperity. Passive incomes are the best option in producing a source of stable income for them, not requiring certain specialized roles in operating the business or needing to invest much time in building up their portfolios (just like you did). Never underestimate the power of compounded interests in passive income assets.


5. Natural way of improving credit score & fix credit report.

Lastly, the best advantage of dealing with personal finance habits is organic growth. What is so unique about organic growth in a credit portfolio mix? A natural way or remedy, starting from your financial spending patterns, essentially removes bad information and objects in a credit report while letting credit rating agencies score you higher in your credit score. This serves as a booster to your overall aggressive credit repair.


Have you realized that there is no expense incurred for an aggressive credit repair? Natural organic growth in maintaining a healthy gearing ratio automatically enrolls you into a spin of credit control measures – inducing your lenders to take a closer look at the shining debt management techniques used in handling unpaid debts.


A credit report requires time in removal of tax liens, writing off bad debts, and deleting obsolete info, all these do need time in extracting the credit report errors. An increase in credit score is based on several factors too. Again, time is needed so the best way is to remain patient and cover the ones you can control while leaving the rest to organic growth.


Good to know about personal finance in year 2018

If you’re ready for a change, be it for financial freedom or providing your family with the best solutions, your choice has to be in line with financial expectations. Global innovation does not need to happen but personal finance management is definitely the key to your motivation. Observe the following guidelines in actively managing your financing problems:

  • Never push for temporary credit score boost
  • Don’t try anything funny such as stealing other identities & credit card frauds
  • Use a budget app calculator
  • Repeat the process daily for financial discipline
  • Sell away unused assets and pay for liabilities

The route to being financially healthy is long. One wrong move in getting into an expensive liability or costly mortgage loan can jeopardize the entire retirement planning goal. Do not attempt to invest in areas of unknowns as well as entrusting 100% of your personal finance portfolio to any financial planners. You’re in safe hands alone.


Cons of personal finance

Experiencing a rough ride in the pros, here are some of the worst cons you can expect in a personal finance. There are many risks associated in debt management techniques as far as undergoing many financial crises – top industry players went bust even with the best resources and asset diversification classes. You’re in the wrong direction once greed takes over your prudent attitude. Avoidance of risk is obligatory so review the five worst cons below.


1. Lack of experience in handling sophisticated finances.

One major disadvantage of personally handling sophisticated finances is the lack of experience in the market. The credit world is dynamic and financial regulations such as lending policies, debt repayment schemes, credit repair companies, credit scoring models, and reporting functions do change from time to time. The compression of debt and economic lifestyle is growing out of control.


Assuming you’re following the above table titled “My Personal Finance Portfolio”, chances of you realizing certain sophisticated terms are high. Below are some examples of confusion:

  1. Mismatch of categories – there’s a chance of you not getting the right variations such as difference between Living and Home, Discretionary and Ancillary, Revenue and Income etc.
  2. Invalid info recorded – sometimes, you might be in a rush to pluck some figures while creating mild confusion at the end of month upon doing a budget planning.
  3. Missing credit consumptions – you might too miss out of certain important financial information due to tight schedule, failure to update causes budget discrepancies.
  4. Unsure of asset vs liability – a good problem is on not understanding the differences between an asset and a liability, differentiating them can significantly impact your credit report and month end balance sheet.
  5. Too many tabs – after a period of 12 months, your entire monthly tracker looks messy and filled with financial jargon, not knowing how to perform a breakdown analysis.

Evidently, most financial-savvy consumers reported difficulties in maintaining a comprehensive financial tracker on their expenses and earnings. It’s no surprise why budget apps & calculators are on high demand! But, the good news is that most apps and manual tracking do provide an accuracy of up to 75% so no worries on this problem.


What’s more concerning is on the use of personal finance applications. Some people diligently recorded much details within the month for 12 months but ended up not knowing how to decipher the mystery. It’s pittance on lack of understanding savings plans and other benefit plans, don’t forsake financial education and go for the bang-for-buck objects.


2. Time spent & resources incurred.

Another disadvantage deterring you from penning down every transactions is the sheer volume of time and resources required. It is a tedious task to write down your daily expenses in the report and many chose to forgo after implementing for some time (around 12 weeks or so). Do not be like them who opt for the easy path out.


Below are some ways to counter time consumption & resources used:

  1. Invest time to code or learn a budget app – tech-savvy consumers may develop an app to track daily spending & automatically uploading their credit reports at a push of a button.
  2. Make use of bank’s app – another way is to adopt a habit of inserting your current, savings and balance transfer accounts into the bank’s app.
  3. Check your credit card statements – an alternative solution is to keep all expenses within a series or a single credit card purchase, using the monthly generated billing as a comprehensive tracking expense tool.
  4. Ask your accountant to do the job – most consumers do need to file for taxes and the accountant can be put to good use – usually at a small cost can do the job swiftly.
  5. Lack of financial knowledge – no problem, seek your friend or relative to educate you based on their budgeting principles, then create a comfortable set of financial rules.

A financial distress may disrupt the entire workflow of personal finance. You’ve to be sure that the existing market conditions do not hinder your attitude towards managing debts such as sophisticated fixed-income liabilities, mortgages, credit cards, or autos. These longer term loans are meant to put stress into your mind, thereby lowering your financial productivity in handling them.


Financial instruments may seem complicated and challenging. If the fixed income problems do not resolve, you’ll be overwhelmed by the monthly bills & tracking down most issues turned into a chore. It is at best to outsource those financial problems to credit repair companies else listing them down automatically using budget applications.


3. Probability of doing credit repair wrongly.

One common mistake money builders made is to do a credit cleanup wrongly. Yes, even experienced financial-savvy personnel do make mistakes when it comes to handling of a credit report or a personal finance portfolio. The problem may come in the form of a credit report error, missed payment info, a mistake in disputes, data mismatched, or not enough details given to credit repair companies.


Below are some common mistakes being found in approximately 79% of American consumers:

  1. Invalid personal information written – most consumers had difficulties in accurately detailing down their personal info as a result not being able to apply for loans.
  2. Obsolete personal info – shifting homes is a common practice and many people don’t update their mailing addresses and particulars.
  3. Aged credit info problem – one bad information is the lack of frequent update in annual wage schemes (job increments & promotions being missed out).
  4. File for verified disputes – some credit repair agencies filed all cases and initiate many disputes including positive claims & verified judgements.
  5. Boosting of credit score temporarily – some consumers invested in aggressive credit repair services for an adrenaline credit score rush but failing to observe permanence.

As you can see, easily 5 variations on a credit repair error has been verified. There’s approximately 9-15 errors on consumer debt reports, let alone your personal finance portfolios. Do not be alarmed as most credit report mistakes are minor in nature but many mistakes caused a hindrance in the eyes of lenders – mainly during credit inquiries and financial rating updates.


Never be part of the high probability of doing a credit repair the wrong way. It’s imperative to be (very) sure of your existing good credit report and maintain high-quality standing. Your lenders often checked upon new & old applications to better understand credit consumption behaviors before issuing an approval to your applied bank mortgage loans.


4. Slow organic growth in credit repair.

Enrolling into organic growth for a credit repair is a slow process. Many people wanted an immediate credit fix and are willing to pay for deletion of bad information. In doing so, you’re effectively transferring the risk out to local credit repair companies but not appropriating relevant debt problems to the correct places.


Some argued that paying for deletion of bad information and removal of tax liens is not a bad move. False! By rendering an immediate credit repair cleanup, your creditors and local governments are alerted on the request for deletion and getting prepared to negotiate on the claims. Below are some common problems faced by both debtors and creditors:

  1. Grey area credit dispute errors – under exceptional circumstances such as delayed responses from third-party vendors, both debtors and creditors don’t know how to deal with such a situation.
  2. Final say by credit bureaus – in any of the credit dispute process, an assigned credit bureau officer has the authority to make a final decision instead of you or the creditor.
  3. Creditors issuing lawyer letters – if alarmed, your creditor like banks or credit card companies dished out legal lawyer letters to protect against negative claims.
  4. Time drag cost – cost of carrying debt burdens is not worth the duration, some debtors tend to be overwhelmed easily.
  5. Money spent on fixing credit – a credit repair does not guarantee success and money invested might not yield favorable responses from either end.

A natural credit repair has its disadvantages too. There’s no complete debt management solutions for you hence requiring your kind attention in recovering bad debts as well as fixing bad information the proper way. It’s not difficult to handle those unpaid dues so long as you’re equipped with the necessary knowledge while exercising patience during the credit fix.


Notably, the above table titled “My Personal Finance Portfolio” is a good example of various debt problems arising among the other topics mentioned earlier. It’s crucial for you to obtain a favorable change from your creditors instead of taking the initiatives to file for credit dispute errors without anyone knowing. This pretty much sums up the tremendous “force” behind a credit repair for growth in personal finance portfolio mix.


5. Unaware of “hidden” legal & financial implications.

Lastly, almost every debtor gets into the problem of hidden costs. For an initial start, incentives are given to you in order to attract you in rebuilding your financial planning via planners and agents. You might not feel the pinch of operating costs while the contractual agreement is being carried out.


Over time, when the incentives such as discounts, freebies, or cash rebates worn off, massive costs started pouring in like waterfall. You’ll be shocked to see many hidden charges and service taxes being imposed, finally enabling you to understand why the incentives were used up so quickly. The budgeted campaign might cost up to ten times of initial contract pricing!


Therefore, do not fall into a debt demise in the long run. You’ve the rights to request for a complete transparent credit repair service before the process begins. If you’re unclear of the requirements, call your local credit bureau agency to help facilitate the entire conversation and getting you to sign on the dotted lines of a contract for a comprehensive credit repair.


Good to know about personal finance in year 2018

Digesting an impeccable wall of personal finance information, you are proven to be ready in managing your individual retirement planning – in the short term and long run. Don’t think of financial planning or generational wealth transition as a one-time limited effort. It’s usually an ongoing process that requires a great deal of time & knowledge. Observe the following guidelines to remain assertive when dealing with your personal financial portfolio:

  • Individual asset-liability management
  • Family planning
  • Retirement planning
  • Generational wealth planning
  • Insurance protection & coverage
  • Local taxation policies
  • Credit repair aggression

You’re in good hands upon acknowledging the pros & cons of a personal finance. No amount of money can resolved major conflicts while lack of cashflow often fetches financial disaster, you have to maintain a good balance between your personal expenses and incoming revenue from work and businesses.


Quote of the Day: “Get to know yourself better – KIG Hall [2013-2018]”


Relevant Topics

» What you need to know about a credit report: Decorate your credit report nicely!

» What you need to know about credit repair: Final destination for a credit fix!

» What you need to know about credit card: No money, no honey!

» What you need to know about credit score: Never destroy your financial reputation!

» What you need to know about personal finance: All you ever needed!


This article was originally published on February 21, 2014. It has since been updated. 

What You Need to Know About Personal Finance

In your opinion, what’s the fundamental rule of personal finance? There are many questionable attempts but what exactly is personal finance. A gini co-efficient index has been in position to analyze the gap between the rich & the poor: investing in real & virtual assets vs. earned income consumption. Who do you think attained the rich position?


So, how can I earn more? Some people argued that a rich man is born by virtue, others being lucky in lottery, few lamented on poverty. Do you really think nature fetches wealth to a random guy in the street? Dig past that, your financial independence begins here.


1. Spend less than you earn (full stop).

Got it, end of topic… For most consumers, under normal circumstances, the cold hard truth is that frugality is the exact opposite of cheap. What?! Yes, buying up boatloads of bargain sale, manufactured defunct goods, or any random toy is very costly. Quote: “If you buy things you don’t need, very soon you’ll be selling things you need” – Warren Buffett.


Don’t like him, try to like his billionaire status. Come to think of it, what’s the difference between being frugal and cheap? Cost efficiency is the key to your answer. It’s difficult to unload junk assets inside your garage, why is it so easy to load up junk goods into the bag?

Here are some tips in learning how to be a frugal person:

  • Buy a credit report – seriously? Yes, the focus is to list out negative objects in the credit report card as the item(s) penned down within is pulling your financial standing down, leading to lower credit score & paying a higher interest to finance loans.
  • Use coupons – really? Yes, you’re finding the items being bought at say $10.00 but the next buyer is paying at $8.00. What’s going on? Either the buyer purchased using a coupon or simply via cash back credit cards.
  • Work overtime – what? To offset for the free time spent on shopping especially for a new auto, rental, or mortgage, it’s prudent to just stay inside an office.
  • Don’t spend time comparing prices – insane? Yes, investing time in digging out a competitor’s good at $0.30 difference is an absolute waste of your time – opportunity cost.
  • Invest wisely – whew! Yes, invest your time prudently in securing a higher paying job while keeping your personal expenses the same, easier than said done!

Here’s a secret for you, avoid listening to financial gurus & friends. If these folks were to do what they preached, chances are they’ll be under creditor’s radar for a credit crunch. You can choose to pick the tab today or choose to pick the slab – choose wisely..


2. Optimize your daily spending habits

One good thing about marketing companies is on consumer behaviors. It’s the profit margins that are targeted towards such investments. If you can find the lead behind an agency’s campaign, spare no effort in doing the exact opposite.

i.e. Corporations invested much time in designing a shopper’s layout, for instance a squared title to make you go slower & spending more time digging for golden nuggets.

What do you think? Obviously, circumvent the financial system by planning your trip ahead of Walmart or Cold Storage! It’s time to be a profitable shopper that spends what you need, not whatever is out for impulsive purchases.

i.e. Rate of inflation is growing rapidly, for instance a bunch of grapes or bananas had risen in cost every year, making you consumer lesser than expected on a regular basis.

Does your earned income keep up well? No, you don’t have the bargaining powers to induce your employer for a higher wage unless due for a promotion.

Skip Applebee or Mango studio! Optimize your daily habits today by reading some personal finance books & financial planning guides online. Best of all, they’re free of charge! Never get tempted to increase your credit score temporarily just to buy a new home.


3. Find a hobby for you & family.

Apart from dining at Macdonald, it’s fair to spend some time with your loved ones. One cheap alternative is to find a hobby, gearing to investable asset classes or fixing of your credit report – yes, there’re some people whose hobbies specialized in dealing with finance-related problems and unpaid debts.


Take a moment to digest the following scenarios:

1.      Holding a decent paying job, saddled with mortgage & credit card debts.

2.      Holding a stable job, tied by a mortgage credit loan.

3.      Holding a high paying career, facing endless piles of personal loans & mortgages.

4.      Holding a normal career, debt-free due to prudent savings.

The answer is clear. No one wants a debt collector to be hot on pursuits. You’re taking an extra time in determining a (serious) hobby in drafting a debt repayment plan, soon-to-be a full-time job in fixing bad information of your credit report. The importance of interest rate calc. & financial institution’s approval rate shall be evident when it comes to applying for a new home with a bad credit.


4. Practice the ten second rule.

Are you swiping your credit cards freely? If the answer is yes, probably indulging in Starbucks or Costa Coffee, do take a quick glance at your monthly credit card statements before buying another dose of caffeine. Chances are that $10 bucks or so could be of assistance to paying your additional mobile bills or utilities.


When the time to purchase an object whether good or bad credit, consider following the 10 second rule, countdown ten seconds before re-thinking about the purchase. There’s a 50% chance of you not wanting that item anymore. Record the item into a credit checklist & avoid the same mistake again:

  • Starbucks, moonbucks, or quickbucks – avoid em all!
  • Macs, BK, Wendy – treat your family members once in a while (not daily)!
  • Outdoor BBQ events – lower your frequency does help in both health & wealth!

Soon, you’ll find that the checklist is filled with all of the possible objects that your claimants had planted into your credit report while finding various means in pulling your credit score down. The efforts used in canceling out bad personal assets is more worthy than applying for a balance-transfer scheme at 0 apr too!


5. Listen to bankrupts.

One of the best financial advices originate from ex-bankrupts. Many people don’t know or understand the feeling of signing up for a bankrupt credit card, asking a credit union for a loan, applying for an auto at higher interest, or simply getting rejected 10 times in buying a home. The feeling is very.. uncomfortable!


Don’t make yourself miserable! If you truly care about your personal financial situation, likely the reason of being in here, KIG Hall’s strict procedure will elevate your concerns to new heights. Elevate.. what? My concerns of having a bad credit score in buying a home?

Not the end of world: Many a time, you might be thinking it’s impossible for any lender to borrow you money. While this appears to be true, there are other alternatives in finding some leverage; licensed moneylenders, credit unions, savings & loans association etc.

Patience: Somewhat self-explanatory, you’ve to remain patient in waiting for your bad credit objects to be removed on their own – some taking up to six years or more.

Sale of assets: Terminating of unused credit lines and selling off additional assets do free up your financial positions, but it’s the spending habits that determines the outcome.

Lastly, bankrupts do offer high quality advices. Nobody wants you to be in his shoes, daily reporting to an assigned credit bureau officer, observing curfews in personal spending, and getting alarmed by debt collection agencies – no difference from being a prisoner of unpaid debts!


6. Lease on free credit.

Come again, lease on what? Yes, you’re absolutely right~ Assuming you borrowed money from one of the major financial institutions:

1.      A bank: usually charging interests on personal loans, credit card cash advances, unpaid debts, mortgage loans, or other lines of credit – one road to being a debt slave.

2.      Mortgage service providers: generally building a relationship with you in sealing the deal for new mortgage payments or re-mortgage financing – one road to a foreclosure.

3.      A credit card company: introducing new financial products on a regular basis while charging abnormal interest rates for profits – one road to bankruptcy.

4.      A payday loan servicer: one great way to attract fast cash but also the fastest way to financial distress due to overwhelming interest rollovers – one road to suicide attempt.

Ahh.. where is the part of free credit? All I see is paid credit! Generally, the only way to obtain a free credit without the need of a credit rating agency, a credit bureau report, a credit score, or any other indicators, check the following proven ways..

a.       Ask a friend or relative: usually getting help financially for the first time. Any more financial assistance might be turned down. Ask wisely, return swiftly.

b.      Seek credit union for 0% interest on balance transfer: one legal way is to seek redress from local credit unions and source for an interest-free balance transfer.

c.       Find a part-time job: slow way to repay outstanding debts but build overtime into a retirement savings plan.

d.      Adopt a proper credit control measure: locate your most comfortable way of combating financial terrorism!

e.       Combat identity theft: many consumers are victims to identities fraud thefts – losing most (if not all) of their personal belongings in a short span of time.

Finally, these are some of the best ideas in getting a lease on free credit. If you’re still not convinced, do a quick credit search in the internet for a better understanding of paid interests (not paid debts). Do you utmost best in rationalizing every step in financial decision-making processes.

7. Accumulate cash rebates, not high interests.

Firstly, you’ll be in a shock after seeing the interest rate of up to 12% (usually above 9% on credit cards). Racking up bills & loans in a credit card doesn’t seem to be the right move. Instead, you can opt to use the extra money (savings on interests) to double your investments in an investment or spend it on your family – why pay the banks?


According to Dave Ramsey’s debt snowball strategy, you may choose to pay off your overall debts starting from the smallest ones; utilities & gas, payday loans, credit card bills. Once the smaller interests are gotten rid of, you can fully focus on the bigger unpaid debts; mortgage payments or collateral debt obligations.


Evidently, it’s imprudent to load up a bunch of cash back credit cards in exchange for huge heaps of outstanding loans. What keeps credit card companies from their downfall is the amount of borrowed money being dished out. Don’t fall into the trap of minor rebates but getting into legal suits for no apparent reason.


8. Build an emergency fund.

Contingency planning, at times critical conditioning, is the most probable opportunity in managing sudden occurrence of unpaid debts. Some of the more common impromptu circumstances are; loss of employment, a financial crisis, an expected downturn, job terrorism, change of economic climate, robots taking over manual labors, company downsizing & many others.


The question is: Are you financially prepared? If not, seek immediate assistance from your family members. They’re the first to be involved due to future cost of carry when such financial negativity or upheaval occurs. Do not attempt to conspire or cheat anyone who helped you out of goodwill:

  • Ask for a small capital to start investing
  • Seek small cash to remain financially abreast
  • Request your friends to buy your products/services
  • Help them in financial planning too
  • Get ready to downgrade or move to a cheaper rent
  • Slowdown your current spending habits
  • Download your colleague’s mobile saver’s app

An emergency fund helps you in a major crisis as well as lending a helping hand to others when they needed help. Everyone should plan for contingencies just in case “stormy weathers” appeared out of the blue – retaining your financial composure and tiding through days without proper cashflow or streams of income generating savings for you.


9. Trust no local governments in taking care of you.

It’s a sensitive topic: 401K, IRA retirement, insurance savings plan etc. Doesn’t the government print more money to keep the economy afloat? Then, your value of dollar erodes quickly. Trust no local governments in providing you with relevant financial ration when the economy crashes!


What should you do? Max out retirement. After a long day at work, or sometimes two jobs, it’s imperative to send the earned incomes directly to a locked-up account, personal savings account, interest-generating account, or a retirement benefit plan. Here are some tips & tricks of saving up the right way:

  1. College savings: employees working to save up for college made the wisest choice, stepping up financial education without incurring costs.
  2. Buying an auto: instead of getting an attractive financing rate, why not save up to upfront pay for an auto – less the headache for 9% interest rate or more!
  3. Get a new job: landing in an interview for a higher paying job pays, just risk an opportunity to find a well-paying career (just once)!
  4. Invest in a business: well, your employer certainly won’t issue free shares & pay your dividends on your hard efforts. Take matters into your hands by being an employer!
  5. Monetized your hobby: creating a Youtube channel, or ads integration, there’re tons of money making opportunities for you to monetize!
  6. Pay off all debts: no amount of slogging hardwork pays all bills. Perform the necessary “debt snowballing” technique mentioned above!

And yes, a balance transfer credit card account does consolidate all unpaid debts & finance at a single interest rate calculation. It’s important to continue servicing the payments while finding extra money to repay faster. A 0 apr account is not of permanence. Therefore, invest wisely in your personal expenses and never to take upon high-interest coverage liabilities.


Good to know about personal finance in year 2018

Ever wonder how you can keep up with annual inflation rate in the U.S. or U.K, now is the opportunity to splurge your personal finance growth segment. The reason why many consumer debt reports depicted poor credit score is due to primarily low personal savings accounts & ultra-high credit card consumption. You’re to adopt financial prudence using the above strategies while retaining certain portion of monthly income salary (approximately 10-15%) to tide through emergencies – scenario planning for contingency cash reserves.


Quote of the Day: “Rule 1: Pay yourself first & Rule 2: never forget Rule number 1. – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: List everything out at once!

» Do’s & don’ts of credit repair: Final destination for a credit fix!

» What you need to know about credit score: Outbeat your scorers here!

» What you need to know about credit cards: Never destroy your financial credence!

» What you need to know about credit report: List out your negative info today!

» What you need to know about credit repair: What do you know?


This article was originally published on February 16, 2014. It has since been updated.  

Do’s & Don’ts of Personal Finance

Where has your money gone? As a consumer, it is important for you to adopt prudent practices in managing foreign & local expenses. If you failed to answer this question, regarding traces of personal expenditure, do not hesitate to implement financial measures in a proper manner. A loss of employment is aggravating, but a loss of cash is disastrous – KIG Hall [2018]. Start following up on your monetary matters via five dos and dons of personal finance, helps in tracking and budgeting monthly expenses.


Do’s of personal finance

Here is an important list of the five dos of personal finance:


1. Budgeting of your expense: Loss of financial control is a calamity, get used to it. If you’ve been spending money, borrowing on credit, signing up for installment plan, or servicing monthly premium (mortgage or savings), consider detailing down every transaction on a daily basis. As you can see, the volume is overwhelming and trying to recall at month end for personal budgeting is difficult. Adopt a proactive attitude in handling spending in a strict manner.


Management of monthly expenditure is not hard. Try it on a bi-weekly, weekly or even on a daily basis, there’re accountants who are too focused on tracking finances. Observe consistency in recording your expenses on a monthly fashion, not too exaggerating as you’ve to invest time and effort in financial education – identifying opportunities to grow wealth. This included researching on various strategies in budgeting; small items, large purchases, monthly servicing plans, or income-crediting facilities.

Spending: The focal point is on learning an appropriate method in budgeting. One way is to first make a decision in taking control of your finances. Draft a list, best using an Excel spreadsheet, and begin recording all expenses for at least three months. Every quarter, implant a 3-month trailing moving average to calculate your personal expenses – the higher the moving average, the higher your consumption factor (positive correlation between spending and poor financial habits)


2. Sell off unwanted asset: “If you buy things you don’t need, very soon you’ll be selling things you need” – Warren Buffet. Such a quote of wisdom addresses every financial aspect in personal finance. Assuming you’re hoarding a pile of assets, video player, spare automobile, aged laptop, extra Youtube account, or any digital currency, it’s time to rid all of them. A good place for bargain sale (not purchase) is the flea market or dust-bustle. Proceed to list the asset class on eBay, Amazon, Commission Junction, or host a garage sale.


Management of unused or unwanted assets is simple. Certainly, you’ve to perform so mundane actions like planning of asset class, setting up an advertorial, populate pricing list, or ensuring pristine condition. These tiny movements lead to the process of financial education. After an extended period, you’ll be used to listing items and can start a small business for semi-passive income. Not only did you get a skill for managing assets, but also grows to an eventual income-generating asset. Once you’ve rid of unnecessary items, trust in you, the spending habits curbed and finally leading to self-actualization.

Listing: Before planning to list on any online platform, eBay, Amazon, C.J, Affiliate Junkie, or third-party vendor, remember not to divulge any personal information publicly and always verify buyer’s identity first. There are police cases on identity theft and loss of asset without payments – you won’t want to be in that situation. As for garage sale, do not mark up any item as it’s for sale, treat the sale as a mean of spinning off unwanted goods that is worth more than placing into a garbage bin.


3. Use a budget app: How do you manage massive daily transactions? If you’re in the following position, a CEO, a frequent traveler, a third-party merchant, a business owner, a sole proprietor, a long-term financial planner, or someone who transacted in the stock exchange, listing down transactions on a daily basis is a chore, what more in a monthly time frame. One good method is to download and install a local budget application (on a mobile phone). The budget app covers two key components; 1) convenience in mobility and 2) accurate tracking of personal finance.


Management of huge transaction volumes take time. A budget app, or multiple applications, may aid in recording expenses on the go, sometimes linking to your personal credit cards for immediate tracking. In doing so, you’re “freed” from the mundane task but the need for analysis remains as an important factor. You’ve to closely observe personal financial consumption especially for high-end traveling lifestyle – cash at hand or money in the bank is often lost along the way of spending. Small amount of losses do amount to quite a sizeable size.

Application: Nerd Wallet [2009] has a useful money-tracking app as well as high-quality spending tips (generally available to the masses). Experian [2009] is a detailed credit check agency that may help you in managing bad debts. Indeed, there’re various ways of resolving personal finance conflict and you need to be wary. The best way is to avoid new credit repair companies and stick to reputable agencies for a peace of mind.


4. Invest for positive returns: Does saving up for rainy days help in retirement? Certainly, a savings plan from a financial institution, a bank, a savings & loan association, a credit union, an insurance company, a micro-credit saving firm, or saver’s bank, does aid in building up a retirement nest egg. KIG Hall’s local retirement statistics proved that many clients don’t have sufficient savings for retirement planning, not to mention federal’s rate of inflation eroding your value of money. It’s a wake-up call to invest for positive returns.


Management of income-generating assets is epic. If you’re saving up for some time, chances of you realizing that your currency is devaluing on a yearly basis. Invest in the following highly effective money making opportunities: invest in a blue chip in a stock market for a stable dividend, invest in an ‘A’ grade bond for semi-coupon payment, invest in a real estate property for a stable monthly rental yield, invest in tax-deferred account for a tax deferment, invest in a tax lien certificate, or invest in a local municipal bond – safe investment class that ensures stability in income stream.

ROI: After learning on the above asset classes, you’ve to determine the right investment portfolio mix to adopt, primarily due to opportunity cost such as lack of resource, capital, or knowledge. It’s a risk to invest in higher income-generating asset classes but the reward is an enabler of tradeoff. Therefore, you can proceed to risk for higher returns on investment or rely on stable paying dividend stocks and coupon paying local government bonds.


5. Ask for a pay raise: Have you worked in a company for 5 years without a pay raise? Out of seniority’s virtue, your company is supposed to compensate your efforts. It’s imperative to seek redress from the company’s HR department for a timely increase in salary or simply a promotion for a higher position. The problem with most corporations is that they don’t recognize your credibility and efforts due to sheer size of employment contracts. Go ahead and demand a pay raise!


Management of increment of salary is not challenging. If your current employer is not willing to provide a valid reason for pay increment, job hunting is the right fit. Find an employment in which your efforts and time spent in growing the company are worth the pay increments. It’s necessary to take precautionary measures as well as investing in various asset classes for diversification purposes – check point 4 above. An investment portfolio helps to tide rainy days and can outgrow your current salary if you’re investing for a long period of time (about 10 years).

Salary: Asking for a pay raise is a sensitive topic. You should communicate privately with your employer on an increment of raise, due for a promotion after 3-4 years of working laboriously – there should be rooms of communication (if not the answer is clear). Exercise financial control over percentage point increase in pay wage, do not over-exclaim or compare against peers. A local benchmark standard has to be observed and negotiated in an amicable fashion.


Don’ts of personal finance

After understanding the rationale behind personal finance, it’s imperative to contain the dons of financial planning as well. A highly effective benefit plan will assist in gear you to the right portfolio mix, investment-grade bond, corporate equity, collateral asset obligation, credit information, or relevant idea. Here are five don’ts of personal finance to observe:


1. Apply for new lines of credit: Maintaining a consistent credit payment history is challenging for everyone. If you’re applying for new credit lines, be it credit card debt or housing mortgage, rebuilding credit score will get affected. There is no “exact” guideline in defining personal finance. You need to closely watch personal expenses in a monthly basis, ensuring that your credit utility ratio is in alignment with your individual spending habits – consumer consumption pattern has to be identified before marketing agencies found out.


Management of credit lines is important. Locating the flow of money is almost as important as consuming food. It’s part of the rationalization in terminating unused credit line while not cutting off useful promotions from your credit card. You’ve been aware of individual consumption factor, using personal credit card, paying of bill, servicing mortgage payment, or even forking cash out of pocket allowance. Every transaction is a cost of carry in credit ownership structure – lowest credit score does impact your future lenders in reviewing your financial background.

Consumption: Adopting new lines of credit is not advisable. In doing so, you’re signaling to your creditor that you have assumed interest in personally managing your monthly expenditure and the progress of a credit repair is good. In fact, streamlining your budgeting is the right way to go in driving up savings account and lowering unwanted consumption – building up confidence among creditors and credit bureaus.


2. Drawing up cash advance: Never draw any cash advance in order to pay a utility bill or potential debt repayment. While it’s generally accepted by masses to leverage on temporary borrowed money, cash advance feature has a daily rolling rate of interest (subjected to bank’s prime rate as observed by federal fund). The bank has imposed the interest-financing costs for you to incur in the short-run, thereby generating a profit in return and you getting the cash on credit to facilitate daily transactions. Come to think, you’ll be paying for unnecessary charges for goods that you can afford in the first place.


Management of termination of cash advance is a must-do factor. Get rid of individual ready-credit, cash-line, bank overdraft, or other credit lines that persuade you to loan for a daily interest basis. If you’re unable to terminate the lending lines pegged to your credit card, charge card, or balance-transfer account, try requesting your personal banker to remove such a function – restricting your spending pattern to mere generic lending purpose. A cash advance’s interest rate can go beyond that of your initial borrowing amount, something disastrous to be avoided.

Avoidance: Cash advance is an attractive way of drawing debts. Unpaid debts may lead to legal and financial repercussion, getting bank’s lawyer to draft legal letter, alerting creditor’s to send debt collector to your home address, termination of membership with credit union, or loss of trust between a good friend and a relative. Are you sure that cash advances or bank overdrafts put you in a good financial condition?


3. Misunderstood the concept of asset and liability: Being new to the finance industry is not an excuse. If you’re treating your home as an asset, personal credit card as a financial tracker, an auto as an asset for transportation, or a bank’s credit line for temporary debt relief, you might be in the wrong direction. Ballooning up fresh debts is a disaster! Therefore, it’s obligatory to receive quality financial education in learning the art & science of asset-liability management – furnishing relevant financial topics in classifying an asset versus a liability.


Management of asset liability management is a skill. You’ve to invest some time to digest the pros & cons of credit repair while getting appropriate financial concepts to steer the “ship”. In doing so, you can identify what an asset class is truly about and not investing in liabilities (thinking of them as asset classes relevant to you), burning a hole in your pocket. There are many ways in fishing out information in the finance industry. One way is learning via a classic book-reading method. Reading books aid in stimulating your financial muscle and re-thinking on the various debt enhancement schemes created by your local bank.

Books: Asset-liability management, physical or electronic books, does reveal the “dirty” tactics employed by banking corporations and local governments. For instance, an in-house bank’s auto loan attracts lower financing interest but you’ll be tied to the bank’s strict penalties. Another good example is housing mortgage debt; your monthly mortgage servicing ratio is pegged to the bank’s prime rate and subjected to change not at your will.


4. Increase spending on credit cards: In order to rebuild bad credit, the first phase is to stop increasing credit utility ratio or simply using borrowed money to finance purchases. Your local credit card companies are closely tracking every transaction being spent on good’s variant – performing monthly breakdown analysis on personal consumption factor. If the bank’s analytics division confirmed on your reckless spending behavior, acquisition rate is going to drop and unlikely promoting quality banking products to service your individual needs.


Management of credit card debt is mandatory. A short burst of debt consumption might jeopardize you in exceeding the coverage limit, enhancing personal gearing ratio, decline in credit card transaction, potential fraud in identity theft, being unable to finance impromptu circumstance like a medical fee, facing financial distress – exposing you to negative credit score reduction. This is a no-go for your credit portfolio mix, unhealthy gearing ratio reviewed by creditors and disapproved by credit repair companies.

Debtor: The purpose of financial planning is to help you in recovering from a bad financial condition. It’s you who must act appropriately, converting existing badly tattered credit report into a high quality scorer, getting creditors to regain confidence in lending you the right amount of borrowed cash and facilitating your spending needs. There is a need to observe your credit score along the way too.


5. Financing of low quality items: A questionable topic rises when your claimant, a rightful owner to your personal asset, inquiries on your credit report listing. The company may demand an answer to your expense whereby you’ll be obliged to provide a valid reason. Failure to respond in a satisfactory manner might land you up with harsh penalties such as fines or even losing confidence from other financial lenders. Buying of low-quality asset class is a strict no. It detriments your financial health; increase monthly interest financing, or foreclosure to another property.


Management of personal finance habit has to be regulated. If you’re in the process of negotiating a credit dispute case, a sudden fraudulent theft, or seeking a credit score check, any of the 3 credit bureaus may review your current consumption variables. Undergoing a stringent review, probably defining of spending patterns, the appointed credit bureau officer might reject your application due to poor credit rating score. Therefore, many creditors and unions may avoid dealing with your future requests when it comes to borrowing.

Delinquency: One appropriate way of mitigating credit risk is avoidance. Since you’re aware that financial institutions like banks, credit unions, savings & loans association or micro-credit lenders, yield the ability to approve or disapprove your loan application, why not avoid engaging dangerous activities like financing low-quality asset classes; a new auto loan, costly mortgage servicing ratio, excessive insurance premiums, or a hobby collection.


Good to know in handling financial discipline

A short summary of the do’s & don’ts of personal finance, you’ll be actively involved in improving your financial discipline – constantly repeating the above do’s of personal finance and avoiding the don’ts (as best as possible). The need to adopt asset enhancement initiatives is imperative while educating on potential legal repercussions.


Observe the following financial disciplinary measures to further enhance your credit repair:

  • Remain adamant in controlling personal expenses
  • Keep track of purchases especially smaller sums like grocery shopping
  • Pay attention to promotional pricing listed by merchants
  • Initiate a sell-off campaign
  • Download mobile coupon apps for quality discounts
  • Never consolidate your credit cards to loan more
  • Incurred unwanted expenses
  • Don’t file a dispute to avoid debt payment or claim
  • Avoid investing in an unknown asset class
  • Mitigate risk of an identity theft fraud

The above stated financial disciplines shall help you in improving your credit score report, personal consumption factor, or fetching higher valuations to your well-being. It’s important to adjust according to the do’s and don’ts of personal finance as who knows, you might need an urgent personal loan or credit extension from your creditor – the reviewer do not expect to receive a shocking answer of 20 dispute cases or a duplicate identity case confirmation. For those who wanted to an answer mitigating financial risks, search: do’s & don’ts of credit repair.


Quote of the Day: “Pegged your financial planning to an industry benchmark – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of a credit report: Yield a better report card to your advantage!

» Do’s & don’ts of credit score: Observe the right scoring methodology today!

» Do’s & don’ts of a credit card: Accumulate latest incentives and interest rates here!

» Facebook: Join our community right now!

» What is personal finance: Receive high-quality education to financial prosperity today!


This article was originally published on February 11, 2014. It has since been updated.  

What Is Personal Finance

Personal finance, a uniquely important category, is not totally linked to saving money. Greradine [2013] assured consumers on that personal finance comprises of the following variables; Savings, Investments, Expenses, Consumption and Credit. Those who had been through extensive financial planning – employed consultants, credit repair companies or simply doing the legwork – understands somehow of what personal finance might be.


For you to truly inked an importance, there is an urgency to be short of cash while facing pressure from hot pursuits. A brighter side is to be disciplined in preparing for rainy days such as contingency planning and investing in equities (or mutual funds). Diligent efforts do paid off in times of impromptu expenditure; new home, sudden loss of employment, medical fees or taking opportunities in market crashes.


What is personal finance planning?

Founded by KIG Hall [2018], an established financial planning company, one of the highly rated personal finance variable is a credit portfolio mix. In a duality realm, both good and bad debts formed the basis of your individual finance [Duality Is Good, 2013]. Till date, no lenders can furnish a fixated credit scoring model for consumers to follow. Therefore, it’s imperative to deliberately request for an annual credit report so as to build a good personal finance mix.


A positive credit file contains necessary debt obligations; good credit score for mortgage, 609 credit or above, quality credit check inquiries and errors clean up. VantageScore 3.0 model, explained by Experian Creditworks [2009], does not take into consideration whether or not your file is thin or thick. The primary concern of three established credit bureaus is on the risk of delinquency rated by the scoring models (regardless of types of system inputs).


How a good personal finance portfolio helps you?

A good credit report is an enabler for lenders to pique interests. If you possessed a high-quality credit portfolio mix, demonstrating on-time payment history and having years of lending records, major financial institutions tend to drive new lines of credit to you. This means that you will obtain one of the best financing rates (be it for mortgage or cash advances) and extended over-the-coverage limits (not available to good credit scorecards).


Therefore, do not be afraid to seek financial remedies when the time to discover credit report has been identified. No scorecard is perfect in measuring your pre-existing conditions or potential credit trustworthiness. Do not fret out on some legal repercussions, phone calls from debt collectors, credit repair agencies, micro-financing firms or pro borno lawyers, most demanding unrealistic gains on money issues. The good news is, proper individualized assistance is about to unfold here.


What does credit bureau check for:

Needless to speak, creditors have pooled their professional knowledge into a single domain expert – the local governmental credit bureau agency. In the United States, for example, three primary debt-governing bureaus are namely; Equifax, Experian and TransUnion. No, they’re not independent of each other (although it may looked of great significance) and simultaneously operated alongside with corresponding financial institutions and local companies.


A quick introduction on some of credit bureaus’ exclusive partners for an extended period of time:

  1. Banks: listed of public exchanges or unlisted subsidiaries, banks played an important role in financing cash flow and ensuring seamless transition from one place to the rightful destination [Mishkins, 2013]
  2. Licensed moneylenders: micro-finance firms, payday loan agencies and relevant vendors contributed directly to influx of cash advances or bank overdraft facilities
  3. Credit union: domestic pool operators working together with general public in exchange of facilitating productive resources over to secondary sources [Unionized Specialists, 2013]
  4. Peer-to-Peer lenders: a type of disruptive technology in establishing directly financing between peers without government interventions [Peer-2-Peer, 2014]
  5. Dark pools: one-of-a-kind underground-like source pool of funds by unknown individuals and corporations [Slow V.S Fast Debtors, 2015]


Experian [2013] urged retail borrowers to attain strategic pragmatism when it comes to checking on credit score reports. As a responsible individual, you’ll observe the following procedures in maintaining a healthy fico balance:

  • Firstly, identify your personal finance. It’s done via calling the nearest credit reporting agencies and a local officer shall attend to your needs shortly.
  • Next up, get ready to furnish necessary documents such as identification cards, proof of address and relevant banking information.
  • Lastly, seek financial planning by undergoing a typical pre-set model; VantageScore 3.0 or Experian scoring platform.
  • Additionally, you may consider engaging a chartered credit repair consultant to aid in settling disputes. Almost any consultant is trained to fix bad debts.



Fact: Truth of not having a “Holy Grail” financial planning system is real – not many debtors possessed the ability to face the reality & your journey has begun the right way at KIG Hall.


How to check your credit score for free?

In any of the 3 credit reporting bureaus, Equifax, Experian or TransUnion, an agent will seat down with you to discuss on your current financial problems. One of the probable methods among local financial institutions is on the combined efforts of inputting payment history. As for you, the assignee may offer to perform a detailed review on your credit score. A highly versatile agent is needed in order to gain clarity on important fixing measures.


Plan for a comprehensive financial coverage plan

An old adage, “If you fail to plan, you plan to fail”, stands true. The reason behind consumers still failing in monthly installments for mortgages, credit cards and auto loans, is only one primary factor – overestimating the quality of financing. Money, highly volatile asset class, can only do limited efforts while fizzling out in persistent inflations. A minor increase in basis points, based on prime lending rate from the Federal funds, can impose significant difference in cash equivalents [Mishkins, 2013].


Having a credit score calculator may be handy. Companies issuing new mortgages or injecting foreign investments often looked at consumers credit reports. A personalized financial planner can help elevate your concerns in building up a proper credit infrastructure for the years to come.


Similarly, professional credit repair companies offer competitive services in fixing bad credit portfolios. You may initially adopt such financial practices, learn the art of credit clean up, finding the right balance in borrowing and repaying, and finally learning to be financially independent. Mishkins [2013] encouraged consumers to engage local credit repair agents nearby. Apart from convenient locations, humans tend to prefer face-to-face interactions (human touch) while identifying the problems in an efficient manner.


Good to know about define: what is personal finance

Of above, no one manages your personal finance expertise more well than you do. The only way to survive stormy weathers is to exercise financial prudence in individual budgeting and financing long-term liabilities. Credit scoring models are overly used in the sense of major exploitations and the current proposition by any reporting agencies may be deemed obsolete – usually within the year or two. Ensure a longevity route to freedom by investing time plus efforts into designing an impregnable credit history today!


Quote of the Day: “Plan Personal Finance, Path Personal Freedom – KIG Hall [2013-2018]”


Relevant Topics

» What is a Credit Report: Learn more about using a report card to your advantage!

» What is Credit Repair: Find out various means to fix current sorrows!

» What is Credit Score: Get your finances ready in front of creditors here!


This article was originally published on January 23, 2014. It has since been updated.  

© 2014 to 2018. Credit Repair | Personalized Financial Health @ KIG Hall. All Rights Reserved.