Money and Credit Advice

Managing money and maintaining credit accounts are major parts of creating financial stability. There are many different professional services that offer advice about managing finances and dealing with credit issues, for a fee, but you can some of that fee money by taking some practical and free money and credit advice.

Credit Cards

One of the common misconceptions people have about credit cards is that using them can damage your credit. The truth is that credit card companies prefer if you use your cards, but you need to learn to use cards in moderation in order to maintain financial stability, according to financial expert Liz Pulliam Weston, writing on the MSN Money website. Keep a rotating balance of up to 30 percent of your credit card limits in use at all times. Do not pay off your cards as that will lower your credit rating. But learn to keep your spending at that 30 percent limit to keep your monthly payments reasonable.

Reports

Each consumer is entitled to one free credit report from each of the three main credit reporting agencies every 12 months. Check your credit report at least once a year to make sure all of your personal and credit account information is correct. Also check to see if any suspicious accounts have been opened in your name that could be a sign of identity theft. If you suspect identity theft, contact the credit reporting agencies, all of your creditors and the local police immediately. Filing a police report about suspected identity theft proves that you took action as soon as you suspected a problem. Also be sure to analyze your monthly credit card statements to make sure there is no suspicious activity on it or charges you do not recognize.

Budget

One of the key tools in money management is a monthly budget, according to the personal finance experts at the CNN Money website. Create a spreadsheet either on a computer or by hand that lists all of your bills and expenses, and compares them to your monthly income. This will help you plan to pay bills on time, help you budget for monthly expenses such as food and savings, and show you how much extra you have each month to pay down your bills.

Spending

Learn to control how much money you spend each month. Do not deny yourself the chance to buy things you want, but rather figure an entertainment entry into your budget for activities like clothes shopping and going out for the evening, and do not be afraid to use it. The key is to not exceed that budget item each month and over-extend your entire budget. Look for areas you can cut back on spending to allow you more leeway in your entertainment budget. For example, take your lunch to work rather than spend money each day to buy lunch. Instead of stopping off to buy a coffee each morning, bring one from home and save that extra money for a night on the town.