The Basics of Credit
VOLUME 9, ISSUE 6
¡°COMMITTED TO DEBT
GOLDEN STATE DEBT MGMT
JULY 2014 NEWSLETTER
FREE GUIDANCE¡±
The Basics of Credit
What is Credit
Disadvantages of Credit
Credit has become a convenient
way to pay for things using other
people¡¯s money. It allows us to
purchase items and services today,
though we don¡¯t have to pay for
them until later.
You pay a high cost to borrow
money (finance charges).
Credit is a promise for repayment
on a debt. The promise is an
agreement between you and the
credit card company or lender.
Types of Credit
If you miss a payment, it negatively impacts your credit rating.
You decrease the amount that
you should be saving in the bank.
Mortgage Credit ¨C Obtained for
the purchase of a home, condo or You put your property at risk if
you can¡¯t pay.
other real property.
You have less money each month
Credit Qualifying Criteria
for household expenses.
Capacity ¨C do you have enough
You can easily overspend and
income to repay the loan?
create financial difficulties.
Revolving Credit - Issued as credit
Character ¨C does your credit recards. They can be very risky for
port show that you are a good
the lender and usually carry a high credit risk?
interest rate.
Collateral ¨C what security do you
have to protect the creditor if you
Installment Credit ¨C Used when
purchasing autos, household appli- don¡¯t repay the loan?
ances, furniture, education, etc.
Advantages of Credit
Open Charge Credit ¨C Usually from You can purchase items now and
small retailers with the full amount pay later.
due in 30 days.
Can help you establish a positive
credit rating when used prudently.
Service Credit ¨C Issued by utility
companies. Requires payment in
Can help you during emergencies.
full and is issued without finance
charges.
A safe alternative to carrying cash.
Guidelines to Consider
When using credit, it should
only be done wisely.
Credit can be costly. If you
don¡¯t need it, don't¡¯ use it.
Philosophy About Credit
¡°He that goes borrowing, goes
sorrowing.¡± Benjamin Franklin
¡°Borrowing is not much better
than begging; just as lending
with interest is not much better
than stealing.¡± Doris Lessing
Self-Awareness Vital to Removing Bad Habits
Understanding Bad Habits
Keys to Removing Bad Habits
Usually a thought process, behavior sequence that is activated unconsciously.
Training oneself to closely monitor
behavior to improve self-awareness
Usually a behavior formed to
cope with stress and boredom.
Identify, list and track all destructive habits you want to eliminate.
Try to eliminate the bad habit imThe behavior usually provides mediately or gradually over time.
some type of benefit (For example, it can help distract attention Other approaches: rewarding oneaway from causes of stress).
self for removing a bad habit; replacing bad habits with good ones;
The perceived inability to
change a bad habit may nega- and trying to avoid people, places
and events that trigger bad habits.
tively affect one¡¯s self-esteem.
VOLUMEN 9, EDICION 6
¡°DEDICADOS A
LIQUIDACION DE DEUDA¡±
GOLDEN STATE DEBT MGMT
BOLET?N DE NOTICIAS DE JULIO 2014
Los Fundamentos del Cr¨¦dito
Qu¨¦ es el Cr¨¦dito
Desventajas del cr¨¦dito
Cr¨¦dito se ha convertido en una
forma conveniente de pagar por
cosas usando dinero de otras personas. Permite comprar art¨ªculos y
servicios en el presente y no tiene
que pagar por ellos hasta despu¨¦s. Cr¨¦dito hipotecario ¨C obtenida
para la compra de una casa, conCr¨¦dito es promesa para el reem- dominio o otros bienes ra¨ªces.
bolso de una deuda y es un acuerCalificar Para el Cr¨¦dito
do entre usted y el prestamista.
Puede ser caro pedir dinero prestado (cargos por financiamiento).
Tipos de cr¨¦dito
Capacidad - ?tiene suficientes
ingresos para saldar la deuda?
Si hace un pago tarde, puede
afectar su cr¨¦dito negativamente
Reduce de lo que puede ahorrar.
Pone sus bienes en riesgo si no
puede pagar.
Tiene menos dinero cada mes para gastos del hogar.
Es m¨¢s f¨¢cil sobre gastar.
Car¨¢cter ¨C ?su cr¨¦dito indica que
Pautas Para Considerar
es buen riesgo para fiarle?
Colateral ¨C ?qu¨¦ tipo bienes tie- Cuando se utiliza el cr¨¦dito, s¨®lo
debe hacerse con prudencia.
ne para proteger al acreedor si
no puede pagar el pr¨¦stamo?
Cr¨¦dito a Plazos ¨C utilizado en la
El cr¨¦dito puede ser costoso. Si
compra de autos, electrodom¨¦sti- Ventajas del cr¨¦dito
no lo necesita,¡¯ no lo use.
cos, muebles, educaci¨®n, etc.
Puede comprar art¨ªculos ahora y Filosof¨ªa sobre el cr¨¦dito
Cr¨¦dito de Carga Abierto ¨C emitido
"El que pide prestado, va aflipor peque?os comerciantes con la pagar despu¨¦s.
cantidad debida en 30 d¨ªas.
Puede ayudar crear buen cr¨¦dito. gi¨¦ndose". Benjamin Franklin
Cr¨¦dito Acumulativo - emitido como tarjetas de cr¨¦dito. Pueden ser
muy arriesgados para el prestamista y por lo general llevan una tasa
de inter¨¦s alta.
Cr¨¦dito Por Servicios ¨C emitido por Puede ayudarle en emergencias.
empresas de servicios p¨²blicos.
Exige el pago en su totalidad, sin
Una alternativa segura en lugar
de cargar dinero en efectivo.
cargos por financiamiento.
"Endeudarse no es mucho mejor
que limosnear; como prestar
con inter¨¦s no es mucho mejor
que robar." Doris Lessing
Autoconciencia es Vital Para Eliminar Malos H¨¢bitos
Compresi¨®n de Malos H¨¢bitos Como Eliminar Malos H¨¢bitos
Un proceso de pensamiento, se- Entrenar a vigilar su comportamiento
cuencia de comportamiento que es de cerca para mejorar la conciencia.
activado inconscientemente.
Identificar, enumerar y observar h¨¢biUn comportamiento formado para tos destructivos que desea eliminar.
lidiar con el estr¨¦s y aburrimiento.
Intentar eliminar mal h¨¢bitos inmediaEl comportamiento generalmente tamente o gradualmente con tiempo.
proporciona alg¨²n tipo de beneficio
(por ej. puede ayudar a distraer la Otros enfoques: recompensar a s¨ª
atenci¨®n de las causas de estr¨¦s). mismo por eliminar un mal h¨¢bito; el
sustituci¨®n de malos h¨¢bitos con
buenos h¨¢bitos; y tratar de evitar
La inhabilidad percibida para
cambiar un mal h¨¢bito puede afec- contacto con personas, lugares y
eventos que provocan malos h¨¢bitos.
tar negativamente la autoestima.
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