Financial stability

It's not everyday you hear the news where people end up in jail because they failed to pay their debts. Where I grew up (Brunei) it is common to hear it from the community; not the government. Civil lawsuits are handled by the judiciary system. 

In the U.S., the best way to handle your debt depends on what kind of debt you have and how much you owe. If you have too much debt, you may need to find debt relief.

I filed a Chapter 13 bankruptcy with John T. Orcutt. After 7 years, the debt fell off from my records even though I have paid off the fees within 2 years after filing the Chapter 13 bankruptcy. 

I didn't think I would ever get another chance of repairing my credit score. Here are the things I have learned from StepUp Ministry's Life Skills program. 

The general idea behind building a credit score involves building a solid history over time with responsible credit use. 

Open up a bank account. Finding a credit union bank is the best option starting out. Apply for a secured credit card or request of being added as an authorized user to someone else's credit card. This person could be someone you trust and who has a good credit score with a healthy spending habit.

If you rent an apartment, schedule a pay period that falls the same week as your pay check. You may also rent a PO Box at a Post Office. You could also setup a mobile phone plan or apply for a store credit card. 

The best stores to apply for credit are Macy's, Target and Sam's Club. 

If you wish to apply for a credit card, there are a few details to pay attention to. 

The annual percentage rate (APR) is the yearly percentage charged by a financial institution on a loan or earned by an investment. The Formula for APR is: APR = (Fees + Interest) x 1 year x 100 / Principal amount, number of periods for loan. There are two types of APR, fixed APR and variable APR.

The Annual Percentage Rate is typically higher than the Interest rate because it includes the interest rate plus certain fees, such as membership or annual fees, cash advances, balance transfers based on the specific characteristics of your credit worthiness.

The best example is Discover card. Since I am still reluctant to return doing business with them, I will always recommend them to friends.

I am currently with Capital One. They taught me tips on how to increase my credit score without making out my card. As long as you pay the principal dues with interest, the balance due paid on time will accrue towards the next billing cycle. They call this method, Average daily balance. 

Just imagine the things I learned in the last decade away from the influence of my abusive parents, I could have had financial stability at 30 years old.

That's beside the point. I'm here now sharing my lessons with you with the hopes you'll find your own financial stability and independence too.

I'm not financially independent yet. However, there's more to learn about investing than just opening a savings account. 

Shop around for the best financial advisors. I haven't found mine yet. When I do, I'll let you know.

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