Asking for an increase to your credit limit on a credit card can sometimes help you through an emergency situation, provide you with a safety cushion of extra available credit, and even help improve your credit score, but should you ask for an increase? That depends. If you’ve only had the credit card for a short time, it’s far better to wait until you’ve established a pattern of responsible use, including maintaining a low credit limit and making your payments on time, every time. Once you’ve proven that, you’re more likely to be approved for the increase to your credit limit. However, if you have a pattern of missed payments, or you’ve maxed out your credit limit, it is unlikely that you will be approved for a credit line increase.
Some lenders will automatically offer credit limit increases once you’ve proven that you’re a responsible customer. Beware of the fine print, however, as some credit cards carry a fee of up to one third of the increase for this additional credit. And, you’re not obligated to accept the increase, either. The bottom line is, you know what you can afford, you know your spending habits, and you know the course of action you need to take to stay on the right financial track for you.
It’s January! Yep, Christmas is over and all those bills are arriving in the mail or in your inbox. That means that it’s time to figure out how you are going to pay all those monthly payments! Don’t worry, you’re not alone. Most of us spend way more than we plan to every December, and as a result, most of us are trying to figure out exactly how to pay them all off sooner rather than later. Let’s start by taking a long hard look at your finances.
Personally, I have a worksheet that I use every month to track both my overall monthly income and my non-discretionary expenses. The income section lists regular (normal) monthly income as well as any additional income that I earn from any outside sources. For example, if I get a bonus at work, or if I earn a few extra dollars for selling something, or even if I just get an unexpected refund on a bill that I may have overpaid, it goes into the additional income line. Then, I total all my income.
Dropping down a couple of lines, I have a section for my bills. Not only do I list the payee, but I also list the starting balance for the year, then the monthly payment amount, along with the amount paid each month (in a separate monthly column). Finally, I add a column to update the monthly balance and a column to show me the year to date change in the total amount owed. And, here’s the hard part… I total up ALL of my indebtedness (including the house and the car) to get a true picture of everything that I owe. Yes, when you add in both the house and the car, well, it seems insurmountable. But it’s my financial truth. And I am focusing on all of it. (You may find it easier to just list your credit cards. It depends on what you’re working toward.)
Then, at the bottom of each column, take your total income and subtract your total expenses. This should give you an amount that will be your discretionary spending each month. (For me, discretionary spending includes my grocery bill because that’s something that I can change by shopping smart, but it doesn’t include utilities because that’s pretty much set in stone – I just use an average amount and put it in the non-discretionary column.) The higher the amount of discretionary spending money that you have, the better your bottom line. Pretty simple, isn’t it?
Now that you have an overall financial picture, you can look at ways that you might be able to reduce these costs. For example, is there a better cell phone plan for you? Perhaps you may decide to change your cable subscription? (I dropped my cable company, then signed up for a couple of streaming services, and saved over $70.00 per month.) And most importantly, you can look at how quickly you can pay off some of those interest bearing accounts! For me, seeing the balances of credit card bills decreasing on a regular basis is the best motivation there is for sticking to my financial plan. But, this is also about you…
What’s your motivation? Find it. And then, start saving money!
With Black Friday looming, there are so many promotional offers, sales, and deals out there that it’s hard to know where to start shopping for Christmas, but here’s an idea that might just keep you home on Friday morning… why not order everything online this year? You can save the time, skip the crowds, and get some deals that you just won’t find anywhere else. And if you do it right, you’ll only have one bill that you have to pay after the holidays have come and gone… that’s right, just one bill. (I don’t know about you, but one bill sounds far easier on the budget than multiple new credit card bills, doesn’t it!)
With your Fingerhut Credit Account issued by WebBank , you can shop literally THOUSANDS of name brand, competitively priced items, including clothing, shoes, computers, electronics, home appliances, furniture, toys, and so much more, all at the same place. All you have to do is make your selections, place your order, and your shopping is done… and you know what’s even better than that? Before you ever even submit your order, you’ll know upfront what your monthly payment is going to be. No more January surprises in your mailbox – you can plan your spending around what you can afford, so you’re not broke once the holidays are gone!
What could be easier than doing all of your Christmas shopping with Fingerhut?
Did I mention that if you sign up for a new Fingerhut account now, you can start shopping right away? That’s right – sign up today and start shopping today!
Here are the details on Fingerhut Credit Account issued by WebBank :
The fastest way that I know of to get a real fresh start on your financial life is to build a realistic budget and then stick to it!
- Housing (rent or mortgage)
- Insurance premiums
- Car payment
- Child care costs
- Debt payments (credit cards, personal loans, etc.)
- Car and home maintenance
Then, list the expenses that you have some control over, that may change from month to month:
- Medical costs
- Monthly fees and subscriptions
- Gifts (Christmas, birthday, etc.)
For those expenses that fall outside your normal weekly or monthly budget, you’ll want to be sure to set some money aside so that you are able to pay them when the time comes. For example, if you pay your homeowner’s insurance annually, you’ll need to save a certain amount of money each time that you get paid for your homeowner’s premium. (Don’t make the mistake of thinking you’ll save for it later or that you’ll come up with it somewhere – you won’t!)
Now, you’ve listed your income and your expenses. The difference between your income and your expenses is your net gain or loss. If your income is greater than your expenses, then you can probably save a little more or have a little extra spending money. But, if your expenses outweigh your income, then you need to be looking for ways to cut corners. Clip coupons on groceries, cancel the upper tier cable channels, skip dinner out once or twice a month, or if you’re seriously in the hole, you may decide that you need to find a second job or an additional source of income. Whatever your financial situation – you cannot do anything about it until you’re aware of it!
Don’t just stop with the budget!
Now that you’ve made a budget, and you’re well aware of your true financial situation, don’t just walk away from it. Pay attention to your spending. Sit down each and every month and study your receipts. How does your actual spending compare to your budget? Are there places where you can cut corners? And are there places where you underestimated the expenses and need to readjust your numbers? The more you begin to pay attention to your spending, the more that you’ll notice when you overspend, and you’ll find that you will subconsciously start to live within your means very quickly.
Fortunately, with so many free tools available today, you can easily keep track of your budget on your phone, your laptop, or even with an old fashioned pen and paper. Whichever way you choose, just be consistent. Sit down, study your income and your expenses, pay your bills, and start putting back any excess for that emergency fund. You’ll be surprised by how quickly you can get your finances under control if you just work at it!