Survival Tips-Credit Reports, Taxes, and Financial Obligations

With a new year around the corner, many of us begin thinking about goals, ideas, and plans. Being well and staying well through the long winter months should include some attention to your financial wellness, especially since we’re often indoors, and tax time will be here before we know it. Use this indoor time to get your finances organized as part of your overall wellness.

Here are survival tips:

Credit Report

  • Not to be confused with your credit score, your credit report allows you to see your credit history in detail. Credit users have three different reports from three different credit bureaus, Equifax, TransUnion and Experian.
  • You can access each of the three credit reports once a year for no charge by visiting annualcreditreport.com. All three bureaus offer the option to pay for your credit score after viewing your free report.
  • The information in the report is closely linked to your credit score, which will impact the choices you are able to make as a consumer. Report any errors that you see through annualcreditreport.com before you pay to see your score.
  • Mark your calendar as to when you ran your report, so that you know when you can access another free report. You can spread out the dates on which you access each of the three reports so that you can see a report periodically throughout the year without ever incurring a fee. This is an especially good idea if you are anticipating a large purchase, like a home, and may need to see your credit history sooner than in one year.
  • Remember to keep your credit report in a secure place.

Taxes

  • Tax software makes it easy to want to do your own taxes for generally low fees, but many consumers report larger returns when they hire a professional to do their taxes. Consider this before writing off an accountant as ‘too expensive’!
  • You’ll likely be getting tax filing information from your employer soon, and you can file as early as January. The official start of the IRS 2016 Tax season is January 20. Use these chilly days to get this important task completed, and see your refund sooner.
  • Getting your refund earlier this winter is a great idea for those who don’t have an emergency fund set up. We recommend a minimum of $500 set aside for emergencies, and during a time where a broken furnace would absolutely constitute an emergency, it’s especially important to be financially prepared for something like this.
  • If you are carrying debt, get some much – needed debt relief using your tax return.

Financial Obligations

  • For many, one of the most burdensome financial obligations is debt repayment, especially after an expensive holiday season. Make this winter the one where you take control of your finances by setting up a debt repayment plan.
  • The PowerPay Program is an excellent way to tackle debt. The idea is that you pay at least the minimum payment on all of your debts, and after one debt is completely paid off, you roll the amount you were paying on it each month into another debt. This method can significantly decrease the total amount of time you spend in debt, and the total amount you pay in interest.
  • Those who are successful in their debt repayment plans are consistent and do not take on any more debt.
  • Look back at your holiday spending. Evaluate about how much you spent, where you could decrease, and what you might like to spend next year. It’s not too early to set up a holiday savings plan where you save a little each month in a 2016 holiday account, beginning in January – and the holidays will not throw off your budget at all next year!

Writer: Joanna Rini, Extension Educator, Family and Consumer Sciences, Ohio State University Extension,Medina County