I’ve been fascinated by money and accounts for a very, very long time.
Growing up, the only debt we had was a running tab at the local grocery store.
And I thought we were poor!
As a young girl, I was always reading and the heroine in my books always ended up marrying a prince or something.
This gave me a deep hunger to better my life so that my children-to-be would not live in the poverty I thought I was enduring.
I even contemplated leaving my nursing profession to take up accounting!
So I could make more money!!
Looking back, I really appreciate my upbringing and I’m glad I stuck to my nursing profession.
But I am still fascinated with the ins and outs of money and I’ve expanded it to include credit, debt, and alternative income so that someday soon I’ll be living a laptop income lifestyle.
Lofty dreams!
By the way…..
I do hope you’re with me on this journey because I’m learning some really cool stuff!!
So…..
Here’s a question for you:
Do You Know What Qualifies as Debt?
Here’s the answer:
When they talk about debt, they’re referring to the amount of your available credit that you have in use.
I was shocked to know that even if you pay off your balance in full each month, it still counts as debt.
Let’s say, for example, you have a total credit limit of $10,000 and each month your charge around $9,000, which you pay off in full each month, never carrying a balance or incurring interest charges.
There’s still a good chance that from the credit score’s perspective, you’re using 90% of your available credit at any given time!
Can you imagine?!
You may think that because you’re paying off the balance each month and you have nothing to worry about when it comes to your credit scores.
But the reality is no so at all!!
You may be avoiding interest charges by paying your balances in full, and you may think you have no debt, but you might be surprised to see that amount referred to as debt on a copy of your credit report.
So even if you are paying off your balance over time, it’s still important to consider your debt to credit ratio and how it can affect your credit score.
We’ll talk more about that next time because the debt-to-income ratio is another intriguing topic.
For now, grab a copy of your credit report and see what’s going on. Maybe you can plug a leak or two!!
Until next time…..
I look forward to hearing from you!!
Althea
Download your FREE copy at www.altheamcleish.com
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PS. Yes… I’m a nurse, but did you know that I have a side hustle? I’ve partnered with a leading financial service company and the number one thing they do is credit restoration. We’ve helped many people since I started on this journey and always looking to serve more. Check out these links…. Fix Your Credit and Earn Extra Income.
My goal is to connect people, ideas, and resources so that your life is better because I helped you make the right connection!!
