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A new law is coming into effect on September 21. The three credit bureaus: Equifax, Experian, and TransUnion will be required to freeze your credit for FREE if you so choose. They used to charge $10 every time someone wanted to freeze their credit, but it will not even cost a dime with the new law.

Once your credit is frozen, the freeze locks your credit file so that a lender, a creditor, and not even a cellular phone company is able to access your credit. It might seem like a hassle, but this will stop someone from taking out a new line of credit in your name, thereby preventing credit fraud.

This is how the process works: When you freeze your credit, you will be given a PIN number that will allow you to freeze and unfreeze your credit on demand. The bureaus are required to freeze your credit within one day and unfreeze it within one hour, meaning you will be able to have quick access to your credit whenever you need it.

I think freezing your credit is a good strategy. Not only will it keep us protected from intruders trying to compromise our credit, but it will also slow down the process in getting a loan, hopefully making us think twice about whether we need that loan or not.

Now doesn’t freezing your credit sound like a winning move toward more Financial Calm?

https://www.equifax.com

https://www.experian.com

https://www.transunion.com

In every relationship, money is a major focal point and stressor. It is no secret that money is a leading cause of divorce in our country. There is a strange phenomena in our society because couples treat money like a taboo, a subject not to be touched. The reality is money is the thing couples should focus on proactively together because so much of the problems that stem from poor financial management can be easily prevented.

Money has a negative connotation in a relationship and ultimately leads to a divide between couples. But with a bit of structured cooperation and foresight it can be a positive force in creating a better relationship and an improving the quality of your everyday life.

What transpires with this divide? It creates tension, distrust, and a lack of building any type of future together. When a couple first comes to me seeking help with their financial challenges, the first question I ask is, “How often do you talk about money?” I have yet to hear one couple say, “ We sit down together at our kitchen table and discuss and track or expenses regularly.” If a couple where to sit down at minimum once a month and talk about money then divorce attorneys would need to find some other line of work.

The trend with couples these days is to stuff the subject in the closet and hope everything will work out. The closet might seem like a good escape for now, but the reality is you can’t keep hiding your problems in the closet or sweeping them under the rug.

So how can a couple let go of this taboo? The first step would be to set a date to have a conversation about money. I suggest on weekends because you are less stressed than during the busy work week. Then step two would be to actually have that conversation about money, adult to adult. Set a goal to clear the slate and let go of all the blame, guilt, and tension during that first conversation. That would be a victory in and of itself.

From there, your next step would be to work on creating a budget together to help you develop a way to have an open and easy on-going dialogue. You don’t need to have any elaborate communication skills under your belt to do a budget. You just need to sit down together, grab your favorite snack and non alcoholic beverage and start filling out a budget.

Why a budget? It is a fool proof paint by numbers approach to communicating. You are taking control of your money that was out of control. You are planning together. You are dreaming together. You are strategizing together. You are bonding together. You are working together to make your financial relationship work.

The best thing, you will perfect the budget as you go along and your communication with each other will improve to a point where you will learn how to master your money.

So wouldn’t you rather want to focus on building a stronger relationship together and strengthening your financial position at the same time? You can do this just like all the couples I have coached are doing this. I can be your guide to make this process painless and seamless.

Give this a try. And if you like I will give you a free budget worksheet and a guide to budgeting to get you started. Email Tim at tim@moneyonyourterms.com and let me know you read this post to receive your free budget worksheet and guide.

Spring is in the air, and that means many people are cleaning out their homes and eliminating excess clutter. Unfortunately, houses are not the only areas that become messy; finances do too. As credit balances grow and interest begins to amass, it can be tempting to ignore debt and continue paying only the minimum toward balances.

However, it is important to view money as a tool. Even if you can easily afford the payments on your debt balances, you are still wasting valuable resources that could be used to build your wealth tomorrow. Debt robs you of your ability to establish a strong financial future by limiting your ability to save and invest today. Instead of spending years or even decades worrying over the amount of money you owe, make this spring the time you clean up your debt and make a plan to tackle it once and for all.

Face the Facts: Know How Much Debt You Have

The first step to spring clean your debt is owning up to how much you actually have. Sit down with your spouse or significant other, and write down all of your current account balances and interest rates. Pull out statements for this step, as you want to record the exact balance – not just an estimate. Include all types of consumer debt, including your credit cards, car loans, bank loans, and even loans from friends and family. Many couples are surprised to find that the actual amount of debt they owe and the interest they pay each month is much higher than they previously thought. The truth may be painful to accept, but it is an essential part of moving forward.

Show Yourself the Money

Once you know how much debt you have, take time to write down all of your expenses based on how much you are actually spending on a day to day and month to month basis. Look at all of your bank statements, credit card statements and ATM receipts to determine exactly how much money your household spends between paychecks. If possible, look at you and your spouse’s spending over the course of a few months to get the best idea of your expenditures.

Next, establish a budget that corresponds with your income. People with revolving debt balances often find that they are spending more money than they make. Take a look at areas you can trim spending to make your budget balance. Then, find ways you can cut back even more to create additional cash for paying down debt.

Trimming your expenses does not always have to be painful. In fact, you and your spouse may be able to save thousands of dollars every year simply by taking your lunch to work more often or making coffee at home in the mornings instead of buying a drive-thru latte. While you can still treat yourself occasionally, making small changes to frequent habits can add up to significant long-term savings. Most people can find room to save money somewhere, whether by shopping around for better insurance rates or using coupons when shopping for groceries.

If you have never created a household budget and want help getting started, visit my contact page to request a free budget worksheet.

Begin a Debt Reduction Plan

Finally, set up a debt reduction plan you and your spouse can both agree on. Based on the amount of extra money you have in your monthly budget, begin paying down your accounts one by one, setting target pay-off dates for each debt. We recommend paying off loans from friends and family first to prevent your close relationships from being complicated by money. Then, begin paying down the debts with the highest interest rates, paying as much as possible until your balances have been eliminated. In some cases, high interest rates can be negotiated simply by calling your credit card company and requesting a lower rate. Though not guaranteed, many creditors will offer you a better rate that will help you pay down your balances faster.

Time to Spring into Action

If you are tired of handling your own money according to everyone else’s terms, do not wait another day to take charge of your finances. If you have tried unsuccessfully to pay off debts in the past or simply need help getting started, we invite you to set up a debt reduction consultation with us today. We can’t wait to help you solve your financial problems and begin the path to a stronger financial future.