Copyright 2014:  Bad Credit Loan Direct.  Bad Credit Loan.   All rights reserved.
Bad credit can work against you.  Whether you are looking to buy a home, buy a car or find a low interest credit card, having bad credit can make you pay higher interest rates or cause you to be rejected for these many important financial tools.  If you would like to avoid bad credit, you can start by managing your money wisely.

What is Money Management?
Money management is putting together strategies that will get you on track with repaying debt, educating yourself on financial tools, and saving & investing wisely.  If you would like to achieve your financial potential you will ultimately need to know how to manage your money wisely.  Even multi millionaires find themselves in bankruptcy court due to poor money management issues.

Create a Budget
Creating a budget is one of the best money management tools available.  What a budget does is it looks at both the revenue you generate and the expenses you must pay each week, month or year.  Creating a budget is very easy and usually requires only a couple of hours at most. 

List any income on one side and then on the other side list all your expenses, no matter how small or mundane.  Once both income and expenses are listed, see where you end up.  If your income is more than your expenses, this is good, you can easily save this amount each month.  However, if your expenses outweigh your income, then you are in very deep trouble. You will need to cut back on your expenses and increase your income in order to save for the future and avoid debt.

Get Rid of High Interest Credit Cards
Credit Cards are one of the top causes for falling into debt and receiving a poor credit score.  Sure credit cards are convenient, but they are extremely expensive.  First off stop using credit cards irresponsibly, never use a credit card when you have the money to pay for an item with cash or a debit card.  You will ultimately only pay more for the item.  Secondly, only use a credit card for emergency situations.

If you have several credit cards with high interest rates and large balances, look to consolidate these cards for a lower interest consolidation loan.  You can wipe out all high interest credit cards in one swoop with a consolidation loan.  Consolidation loans not only make it convenient to pay off your credit card debt, but because they are usually at much lower interest rates they can save you hundreds or even thousands each year in interest fees.

Manage Your Money Wisely