Specialized Consumer Strategies - The Importance of Financial Planning

Specialized Consumer Strategies works with clients who wish to gain knowledge on how to achieve financial control. Many of the firm’s clients are people struggling with bad debt. SCS comes in and provides the knowledge and tools necessary to help clients eliminate debt and become wiser at financial planning.

Having a financial plan enables you to set short and long term financial goals, which is very important in achieving financial success. When you have a plan in place, it’s easier to make decisions that help you stay on track. Some people can do this on their own. As Specialized Consumer Strategies has seen over the years, however, many people require a little help in securing their financial futures.

When you have a plan, you can manage your income effectively. You can understand how to allocate the income to various needs and still have enough left for savings. A financial plan enables you to see the areas that require less spending, so that you are left with more of your hard earned money. With an increase in cash, you can start considering investments that can multiply your financial resources.

A good financial plan also considers your financial objectives and risk appetite. Once you start considering various ways to save and invest, the financial plan helps you make the right decisions on which investment options to consider.

Lastly, a financial plan is what you require to provide financial security to your family. If you haven’t worked on a financial plan yet, Specialized Consumer Strategies knows it’s never too late to start.

Specialized Consumer Strategies - Three Ways Credit Cards Should Not Be Used

Specialized Consumer Strategies works with individuals who have poor credit score and are in debt. They offer strategy options that clients can choose to pursue to apply for smaller interest rates, work of their debt, and increase their credit scores. Clients can also ask for a budget plan that helps them live within their income.

Specialized Consumer Strategies focuses on not only providing their clients with options but also educating them so that they can make better decisions in the future. They put on emphasis on how to properly utilize credit cards. Here are three ways credit cards should not be used.

Credit cards should not be used to receive store discounts. Often, stores offer one-time discounts open opening a new line of credit. In the short term those discounts seem beneficial, however, store credit cards have negative impacts on credit scores and will be harmful in the future.

Credit cards should not be used to finance personal wants. When credit cards are used in this manner, the balances on the cards are often ignored or reach a point where payments fall behind. This is dangerous because payments need to be made, otherwise the credit supplier will eventually report that individual to the credit bureau.

Credit cards should not be used as a substitute to close old accounts. It is good to keep old accounts open because they show a history of credit card use and payments, which looks good on credit reports. The length of a person’s credit history makes up 15% of their overall score according to FICO.

Specialized Consumer Strategies - Three Ways Store Credit Cards Affect Credit Reports

Specialized Consumer Strategies provides financial options and budget plans to their clients who are in debt and have bad credit. They were established eight years ago in response to banks and lenders increasing their interest rate charges, regardless of a person’s individual financial situation.

Specialized Consumer Strategies strongly advises their clients to avoid using and even applying for store credit cards because of the negative ramifications they can have on credit reports. While store credit reports seem like a good deal at the team, in the long run, they have bad effects on a person's finances. Here are three ways that store credit cards affect credit reports.

• Using a store credit card responsibly will help a person's credit score, but that do not significantly help scores and are no way near as effective as regular credit cards are. Additionally, it is difficult to use a store credit card responsibly because they are easily forgotten about and, therefore, the balance is disregarded.
• Store credit cards usually carry grossly large interest rates, way above the already high market rate for credit cards. If a balance is carried on a store credit card, the charges will be astronomical and can become difficult to pay off. If a balance is not properly paid off, the cardholder will be reported to credit bureaus, thus affecting that person’s credit score.
• Lastly, store credit cards usually have low credit limits. This makes it easy for cardholders to max out their cards, which means that penalty fees and late fees start to rack up. This puts the cardholder in a difficult financial situation and could lead them to miss payments, thus affecting their credit score.