This document provides tips and instructions for building good credit, getting out of debt, and managing money. It recommends paying all bills on time, avoiding going over credit limits, and canceling unused credit cards to build credit. To get out of debt, it suggests cutting up credit cards, lowering interest rates, transferring balances to lower interest cards, and paying off highest interest debts first. Money management tips include tracking spending, creating a budget including fun money, pacing spending, and being careful with credit cards.

1. Credit/Debt Ratings, Scores, Tips

2. How to Build a Good Credit History Building a good credit history is essential to anyone who expects to make major purchases or start a business. Building good credit is actually easy to do - if you pay attention to your expenses.

3. Instructions STEP 1: Know which accounts are shown on your credit report. STEP 2: Request a copy of your credit report at least once a year. STEP 3: Check that the information shown on your report is accurate. STEP 4: Pay all of your bills on time. You don't need to pay the entire balance each month, but make at least the minimum payment promptly. STEP 5: Avoid going over the credit limit on your credit card account. Some credit card companies allow you to do this as a courtesy, but it can reflect poorly on your ability to handle your account. STEP 6: Cancel credit cards you aren't using or don't anticipate using.

4. Tips & Warnings If your application for credit is denied, you're entitled to a free credit report. The denial letter you receive should list the credit bureau used. Contact that company for the copy of your credit report. If you don't understand the report, contact the credit bureau or your local consumer credit counselor. Setting up an automatic payment plan with your credit card company can help ensure that you never miss your minimum credit card payment. If you never use credit of any kind, it doesn't mean that you'll have a great credit history. Most lenders prefer to see a history of credit and debt payment. Avoid "shopping for credit." Each time you apply for a loan or credit card, an inquiry from that lender will be reflected on your credit report. Too many inquiries can signal to a potential lender that you're a risky customer.

5. U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 03 Nov 2006 at 01:14:22 PM GMT is: The estimated population of the United States is 300,135,992 so each citizen's share of this debt is $28,572.58 . The National Debt has continued to increase an average of $1.96 billion per day since September 29, 2006! Debt

6. Instructions: Getting out of Debt STEP 1: Cut up your credit cards except for one or two to use for emergencies. Throw away the pieces. STEP 2: Cancel all of your credit lines and request a lower interest rate on the debt you have left. STEP 3: Transfer as much debt as possible to the credit card that has the lowest interest rate, or get a debt-consolidation loan from a bank at a lower rate. STEP 4: Use cash for all your purchases, and only buy what you can afford. STEP 5: Commit to start paying off your debts one at a time and do it. Pay off the credit card and loans with the highest interest rate first. STEP 6: Double your payments on the next debt by taking the payment you made on the first debt and adding it to the current debt. STEP 7: Triple your payments on the next debt by combining payment amounts. Continue until all your credit cards and other debts are paid off.

7. Tips: Getting out of Debt Invest in personal finance software to accurately track your spending and identify problematic habits If you have investments that are paying 6 to 10 percent but a credit card debt with an interest rate of 17 to 21 percent, cash out your investments and pay off your debt. Ask your creditors how much repayment is needed before they are able to send a favorable report to credit agencies. Sometimes they will accept less than your total debt. Use consumer credit agencies to arrange repayment of debt. Many are free.

8. Money Management Tips Keep track of it – track all your spending for two weeks, see where your money really goes Budget —list all sources of income and all expenses (based on your tracking) Include fun money in your budget —don’t deprive yourself, don’t fool yourself into thinking you will Pace Yourself —it’s easy to spend all your loan/aid/scholarship money early in the semester, then be broke Careful with those credit cards —if you can’t afford to pay for it now, you probably can’t afford it Revisit and adjust your budget —after an impulse buy or unexpected expense, tighten up for a while Plan ahead —Spring Break is more fun when you’ve saved up enough to enjoy it guilt-free

9. Sources Information derived from ehow money management tips