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It’s always terrifying to have your loved one in jail. But what’s more frightening is the financial obligations you’ll have to be accountable for, especially if the jailed relative was the breadwinner. This will necessitate that you master a few concepts of handling your finances. That said, this post will look at some financial tips that will come in handy in the event your loved one is incarcerated.
Check on Your Credit Report
It’s crucial to double-check your credit report regularly. Every year, each of the three credit agencies must provide you with a free credit report; go to AnnualCreditReport.com. At its most standard level, a credit score is a three-digit figure with a range of 300 to 850 that estimates your likelihood of repaying debt based on your past repayment history and present debt load. Paying your bills on time and eliminating debt are just a few ways you may raise your credit score. Without your loved ones around, you may need urgent loans during emergencies, and having a good credit score will help you get excellent and fast loans.
Avoid Bad Loan Options
Some loans like Payday loans and check cashing services often appear the best option if you need money immediately and are in a tight financial situation. Because many services completely disregard credit records, they are quick and straightforward to sign up for. However, because they are so difficult to repay, these loans are among your worst options if you’re trying to mend your finances.
Many people aren’t aware that the interest on payday loans may be as high as 400%, which means that the interest will continue to compound, and you would need to get your next loan to pay off the first. When you need money fast to get your loved one out of jail, you need to know where to get funds. For example, bail bonds in Los Angeles can help people trying to get their loved ones out.
Budgeting
Generally, having a budget is good, but it may be more significant during challenging times, like when your loved ones are not around. A budget will enable you to make more informed purchasing decisions and spot possibilities to increase your cash flow. Your budget will make your financial condition more realistic. You will see where your budget has to tighten and where you splurge for fun. A limited spending plan allows you to keep track of every dollar. Consider adopting the 50/30/20 rule. It recommends spending 50% of your income on basics like housing and expenses, 30% on recreational activities, and 20% toward your emergency fund.
Opt for a Second Chance Bank Account
It is wise to start again if you have incurred late fees, overdraft fees, or other financial problems abroad that have badly impacted your bank account. Once the problems with your prior bank have been resolved, you might wish to consider creating a Second Chance Bank Account with a bank that offers these accounts and is sympathetic to your case.
Simple checking accounts, known as “second chance” accounts, are made for persons who need to repair their credit and financial histories. These accounts have fewer withdrawal and debit limits and restrictions, but they also feature cheaper monthly fees and no overdraft protection.
Once you start getting paychecks, you might want to set up direct deposit with your new bank account. Most businesses provide you the choice, and you may save the hassle of cashing checks because there are no fees, and the funds will be in your account immediately on payday.
Take Care of Your Debt
While some people may use debts in profitable ways, accumulating more debts can pose danger to your finances. Besides, negatively affecting your credit score, debts can also hinder you from making good investments on time. So while your loved one is in jail try not to accumulate debts. Moreover, look for ways to pay for your current debts in time. This will prevent you from paying the delay fees and improve your credit trustworth.
Bottom Line
It need not be daunting to take charge of your financial life. You will start to see substantial changes in your financial habits with only a few minutes every day spent paying attention to your budget and remaining on track. Improving your financial situation will be more straightforward if you have a system and know where your money is going.
