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Tip #48: Find more ways to income

While you are repairing your credit, you will want to channel as much money as you can into savings and debt repayment.  For this, having a second income or even just a few hundred dollars a month more can mean that you get your credit into shape faster. 

Having a secondary form of income can also keep your credit safe - if you lose your job, you can use the money you make from a secondary source to repay your bills until you find another form of employment. 

There are many ways to get more income:

-You can ask your employer for a raise. 
-You can start to sell something through the Internet or through a company. 
-You can establish your own small business that can be tended to on the side. 
-You can rent out part of your home to make some extra money.
-You can get a part-time or weekend job.

Whatever you do, finding an alternate source of income can help your credit immensely.


Tip #49: Prepare for financial emergencies

Few of us think about what would happen if we lost our jobs or suddenly became too ill to work.  The thought is simply too terrible to contemplate in many cases, especially if we are living paycheck to paycheck with a job as it is. 

The fact is, though, that financial emergencies happen to almost everyone at some point and they can have devastating impact in your credit. In fact, most people who declare bankruptcy do so because of a huge financial disaster such as sudden unemployment, huge medical bills, a lawsuit, or divorce. Despite this, few people plan for these problems, even though they can happen to anyone. 

If you want to keep your credit score in good trim, you should know exactly what you would do in case of an emergency.  Developing an actual written plan can help you by letting you take action to save your credit as soon as an emergency occurs.  Some items that could be on your financial emergency plan could include:

1) A list of all assets you could liquidate if you had to.

2) A list of all extras or luxuries you could cut out of your life right away if there was a problem (i.e. newspaper subscriptions, cable television, water delivery service, Friday nights at the movies).

3) A list of any resources you have that could help you in case of an emergency.  Maybe you know a lawyer who deals in financial facets of the law.  Maybe you have insurance that could help you.  Maybe your employer offers a severance package.  Whatever it is, write it down. Keeping a list of these resources will make them easier to access in case of an emergency.

4) Other ways you could get money if you had to - jobs you could take, things you could rent out to others.


Tip #50: Get overdraft protection, insurance on your credit cards, or other services to keep your credit in good shape

Talk to your bank and lenders about services they offer to keep you safe. Overdraft protection, for example, is a basic service that often costs nothing or very little extra but which protects you in case you withdraw too much money from your bank account. 

With overdraft protection, you do not get a “ding” on your credit report or a charge for insufficient funds.  In most cases, you get a day or two to add more money to the account to cover the gap.  Some credit cards and other loans offer a similar service or offer insurance which protects you in case you lose your job and are unable to pay for a few months. 

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