Personal Finance and Stress Related Factors
There are various common indicators of what has come to be known as “Credit Stress” and is synonymous with the ever increasing anxiety created by personal finance and its associated problems. A variety of factors need to be considered when determining the symptoms of credit related stress, including a lifestyle that is dependent on your credit limit. This could be emotionally and physically detrimental to anyone who is not living within their personal finance resources.
One solution is to reduce dependency on your credit card and spending on for example; clothes, vacations and restaurants and other expenditure that could be classified as frivolous. An option is tom use a charge card, which requires any balance to be paid in full for each billing term. Another is refusing the temptation of using credit to bolster your cash flow between pay-days. If you do not have the resources to manage without credit, then you are unstable regarding your personal finance control and credit situation.
One ideal method of avoiding a predicament like this and improving your personal finance stability is to increase the amount of your savings account. Every person should have an emergency reserve fund, and could consider approaching an Internet banking facility regarding higher yields, or participating in a 402(k) plan, with a matching contribution from your employer.
There are many varied and highly tempting offers and rewards made by various financial institutions. However, this is a strategy that should be regarded with care and objectivity. Cards that offer a reward factor usually incur a higher rate of interest, with benefits offset by added financial charges, if an account is not paid in full each month. If you are tempted by offers that appear too good to be true, they generally are!
If your personal finance position is such, that you are performing a juggling act regarding payment of a credit card bill when due; be aware that any unforeseen event could result in being charged with a late payment fee. This is related to the position of having your credit card rejected for a payment. It is not only an embarrassment, but is a highly significant warning that your attention to the financial position is urgently needed.
Although the Consumer Financial Protection Bureau recently drafted a proposal for regulation related to collection agencies practices. While it may alleviate some of the anxiety regarding outstanding bills, it is not recommended as the complete stress relieving substitute for outstanding debt.
Personal finance disciplines, management and controls could surprise you with their success and stress relieving capabilities!