Your investment dollars will be better spent to rectify adverse financial issues that affect you each day. If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first! If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills.
It is important to know what is on your report, and to clear up any negative items on your credit report as soon as possible. For instance, high interest credit cards are not necessary. You should do this once each year. Next, look at what you are paying out each month, and get rid of expenses that are not necessary.
While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the various types of investments. Pull your credit report. This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future Pay them off and get rid of them. Investing in the future is a good thing, but clearing up bad – or potentially bad – situations in the present is more important.
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