You’re Paying More Than Everyone Else
Let that sink in for a second.
If you have less than great credit, it’s absolutely true. You’re paying more than
everyone else for the same things. Let me put this another way… When all of
your friends use $100, $200, or $400 each month to buy things they want, you
actually throw your money in the garbage instead. Did it sink in yet?
The worst part of having bad credit isn’t getting denied, but approved!
Let’s talk about Kevin for instance. Kevin had a credit score of 620 and applied for
a $150,000 thirty-year mortgage. He qualified for an interest rate of 7.15%
because of his credit rating. His monthly payment turned out to be $1,013. But if
his credit score would have been a 760, he would have qualified for a rate of
5.55% and paid only $856 a month. That’s a difference of $157, every month.
Kevin is throwing away $157 every month. Free money for him to do with what
he pleases---gone!
This doesn’t even account for the $80 more in interest that he pays on his credit
card than his neighbor does for the same balance. It doesn’t account for his
inflated car payment either, another $107 per month. That’s a total of $344 given
away--every month—month after month. Here’s the kicker though, Kevin’s credit
score isn’t even “that” bad according to most people with bad credit.
A common reaction to credit and debt problems is denial, or worse yet,
avoidance. People avoid understanding or even thinking about their situation.
Their approach is to ignore it and it will “go away”---but ignoring your problems
will not make them go away. Looking the other way just makes things worse. You
need to accept the situation entirely, face it, and take action.
And we’re going to help you. Worrying about it, or even just keeping it on the
back burner is actually more stressful than just taking a few months and dealing
with it.
