1. Your credit report. Visit annualcreditreport.com and request your free credit report from each one of the major credit reporting agencies; Experian, Equifax and TransUnion.
2. Analyze your auto insurance coverage to make sure you are getting the best deal and that you are adequately covered.
3. Check your savings and investment accounts. Make sure you are taking full advantage of employer matched savings programs and check the diversity of your investment portfolio. If you need help with investments, talk to a certified financial advisor.
4. Determine your net worth. Make a list of the value of all of your assets and the amount of your liabilities. Then subtract your liabilities from the assets. If the number is negative, you owe more than the value of your assets. If part of your debt is unsecured look for ways to reduce it or eliminate it as soon as possible. Every dollar that goes to repaying interest on unsecured debts, like credit cards, is a dollar you cannot use for securing your financial future, buying a home or meeting your personal financial goals. Certified Credit Counselors can help you determine your net worth and develop plans for managing your debt. Visit the Association for Independent Consumer Credit Counseling Agencies at www.aiccca.org to find a counselor.
5. Once you know the worth of your belongings and investments, determine the level of home or renters insurance you may need.
6. Finally, evaluate your need for life insurance.  MSN Money has a great calculator you can use to determine how much life insurance would be necessary if something happened to you.

The above is just a bare bones list of items you should evaluate on, at minimum, an annual basis. By reviewing these critical areas you will have the information you need to create a plan for your financial success!

Several years ago when I got myself in over my head with my credit cards I didn’t know where to turn for help, so I ended up filing a Chapter 13 bankruptcy. I didn’t know there were other options out there. My first question when I came to work at American Financial Solutions was “Where were you when I needed help?”

When I came to work here boy did I ever get an education. My credit score was in the low 400’s and there were so many negative items on my credit report it filled up about ten pages. I honestly had no idea the effect this was having on my life.

I also have to admit that I was in some financial difficulty when I started to work here. After about six months on the job I enrolled myself in the debt management program with two creditors I had been struggling with for over four years. My first creditor was paid in full after 14 months on the program and I just completed the program in February, 2008.

I now know how important it is to not only pay my bills on time, but to pay them in a manner that allows my creditor to post the payment to my account before the due date. Just because I schedule a payment online on a certain date doesn’t mean it posts to my account on that date. I pay my utilities at a pay station just in case there is a problem with the mail.

On December 31st, 2007 I was very proud to find that I had a credit score of 719 and there is now only one negative on my credit report. The online classes that are offered through American Financial Solutions are about the best education I have ever received and you don’t need to attend classes or try to figure out how you are going to pay for them. They are offered free of charge.

If I had known twenty years ago what I know today my credit score would be in the 800’s and my credit report would be squeaky clean.

When I am talking to my clients they always say they can’t understand why the creditors are ruining their credit. I used to have the same mindset. What I have learned and try to educate my clients about is that our credit reports are a snapshot of what we do to ourselves, not something that is being done to us.

Below is some advice on how to plan for these situations:

Emergencies: If you stop and think about it, how many of your current credit card charges were actually for emergencies? Rather than continue to pay interest and fees for the privilege of having and using a credit card, start saving to build up a cash reserve. Use your debit card or look into online banking to pay bills and make normal monthly purchases. Put 10% of your pay into a savings account. If an emergency arises, try to use your savings rather than increasing the balance on your credit card.

Traveling: If your debit card has a Visa or MasterCard logo, you can typically use it to reserve a hotel room, a car or purchase airline tickets. The key is planning; take the time to determine how much your vacation is going to cost and begin setting aside money specifically for that purpose. Also, make sure you have enough funds in your account to cover the hold (the amount the hotel or car rental business charges you to guarantee the reservation).

When you are traveling, use traveler’s checks (considered the same as cash, but protected against loss and theft) or your debit card. Just be sure to track where you are spending money so you stay within your limits.

Training yourself to live without credit cards can be difficult, but the rewards are great. Rather than paying interest and fees to someone else, the money you earn is your own.

To learn more ways to save money and live without depending on your credit cards, visit http://www.myfinancialgoals.org/ or call a certified credit counselor at 1-888-282-5899.