With the ever-changing family dynamic of the United States, incomes have also changed. Fifty years ago the norm was a two-parent, two-income family. In this new century, however, the norm is anything but. Regardless of the reasons – by choice or necessity – there are tens of millions of American households surviving on just one income. If this is your situation, you should also understand the dynamic importance of maintaining a good credit score and accurate credit history.
Of course, the best and most effective way to keep up with your credit is using a credit optimization company with the expertise and experience to hasten your credit score improvement. However, having only one income often means the affordability of using a company is sometimes out of reach. If you aren’t able to utilize their services right away, there are several things you can do on your own to help improve your credit.
- Make a Budget Immediately – If your family is living off of a single income and you don’t have a budget… start this minute. Seriously, stop reading this blog and get to work on your budget. We’ll be here when you get back, we promise. We cannot overstate the significance of not just creating a budget, but sticking to it like you would any of the most important aspects of your everyday life. Making a budget is crucial for the health and wellness of your credit score. Wise and prudent spending and saving will do more to improve your credit history than almost any other advice you can receive.
- Short Term Goals – Long-term goals concerning your credit can feel daunting and unobtainable. Instead of allowing yourself to be overtaken by your debt and financial situation, focus on short-term goals. If you’ve done your budget (if you haven’t, see #1) you’re already halfway there.
For example, if one of your long-term goals is to pay a credit card with a $2,000 balance down to a $0 balance, you obviously can’t do it if your budget only allows for a payment of $150 per month. By setting yourself a goal of paying down that credit card to 30% of the available balance within three months, you have a much better chance of achieving that goal with proper budgeting or searching for additional streams of income. The bottom line is that you are making strides that affect your credit score.
- Additional Income Streams – In the age of computers and the Internet, there are more opportunities than ever before to find additional ways to earn a little extra income for your single-income family. We’re not referring to the trolls in every comments section of every webpage ever created that boasts claims of an uncle, “earning $18 million a month doing this one simple thing!” No, not that. Never that. But there are thousands of online jobs willing to pay a little extra money for a little bit of your extra time. There are several websites looking for people just like you to work your own schedule for a little extra income each month. As you’ll notice with your short term goals, a little can add up to a lot when you devote the time and patience.
We understand all of our advice is easier said than done, but we believe in you. You wouldn’t be here reading our blog if you didn’t have the drive and ambition to change your current standard of living or improve the lives of your family. Being a single-income family isn’t easy, and it’s even less easy when you’re trying to attain a higher than average credit score and improve your credit health.
Great article from Continental Credit