When Arizona consumers know that a big bill is due in the near future, many of them have two options. They can use a portion of their monthly budget to pay the bill, then compensate for the lost funds with credit cards. Or, they can plan for the bill, make some strategic cuts in their budgets, and not rely on credit card use to cover the extra expense. This latter option, is, of course, the best course of action. This strategy may involve some temporary sacrifices and cutbacks. However, by not racking up heavy credit card debt, consumers in Arizona can preserve both their finances and their credit scores.
How Arizona Consumers Can Create a Budgeting Plan to Cover a Big Bill Without Resorting to Credit Card Debt
Maybe your car needs new breaks, or your oldest child needs braces. Possibly, it is time to put a new roof on your home. There are a million reasons why Arizona consumers might face a big bill. Yet, if you know it’s coming, you can plan your budget around it in order to accommodate the expense. Here are a few tips for consumers in Arizona who want to tackle big bills without running up credit card debt.
Ask your service provider about payment plan options.
If you know you cannot cover the cost of your major expense in one lump sum, use a payment plan. Most service providers offer them, but not all payment plans are the same. Sometimes, in-house financing is available, but a lot of businesses use third-party lenders that impose heavy interest rates. So, make sure to carefully read the terms and conditions of any payment plan before committing.
Start cutting expenses from your budget as early as possible.
For most consumers in Arizona and throughout the country, saving money isn’t easy. Yet, the sooner you start, the more cash you’ll have tucked away for when you need it. With most budgets, the easiest expenses to cut first are the ones that you may not normally think about. For example, you may get coffee from a popular coffee shop every day, and the $4 that you spend seems harmless enough. However, if you start brewing your own coffee, you might save as much as $80 just from making this one swap.
If you must borrow money, consider alternatives to credit cards.
Finally, if you realize that your upcoming bill is just too big to manage without some credit assistance, don’t automatically assume that credit cards are your only options. For example, many Arizona consumers use personal loans to cover everything from dental work, to weddings, to vacations. Unlike payday loans, personal loans from reputable lenders often come with lower interest rates than credit cards.
In Addition to Keeping Credit Card Balances Down, Arizona Consumers Can Protect their Credit Scores by Checking their Credit Reports
When Arizona consumers use 30% or less of their credit card spending limits they help their credit scores by lowering their credit utilization ratios. Another way to protect your credit score is to check your credit reports at least once every 12 months. Unfortunately, creditors and the credit bureaus frequently make mistakes with consumer information. These mistakes then show up on credit reports as errors that can cause you to lose credit score points.
Luckily, the Fair Credit Reporting Act (FCRA) entitles consumers in Arizona and every other state to accurate credit reports. Yet, you must find credit score damaging errors in order to get them removed. This is why, once a year, Arizona consumers should visit www.annualcreditreport.com. Here, they can request their free annual credit reports from TransUnion, Equifax, and Experian.
While reviewing your credit reports, if you find that mistakes and errors have brought your credit score down, contact Credit Repair Lawyers of America in Arizona. Instead of taking on the error-disputing process yourself, let our credit pros do all of the work for you. Then, an experienced credit attorney will do whatever it takes to get you clean credit reports – legally and for free.
How to Get Better Credit Legally and for Free in Arizona
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (480) 771-6001 or contact us on our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/arizona/credit-repair/.
