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Credit Repair

10 Ways to Cut Expenses and Rid of Debt



Do you know how much you spend on groceries every month?

Do you understand the way your monthly home bills add up?

These are just a couple of questions to ask yourself when figuring out how to cut expenses. Better budgeting doesn’t mean you live a boring, restricted life or have to feel weighed down by money. It’s actually the exact opposite!

When you have a deeper understanding of your savings and expenses, you’re able to do more with less. You can still enjoy your life within a reasonable means of spending, while also putting more money away in your personal savings.

If this sounds like the answer your bad credit score has been looking for, keep reading. Here are 10 simple ways to cut expenses and create more financial freedom in your life.

1. Take Care of All Your Late Payments

First things first, you have to get all of your late payments in order. These will come back to haunt you if you keep putting them off. The longer you wait to pay bills that are past due, the higher the late fees become.

Sit down and take care of every single one of your bills. Pay off the ones that are late right away and set a schedule to pay your next cycle of bills ahead of time. This is the best way to keep yourself from falling behind.

2. Avoid Paying Interest on Debt

Keep in mind that your minimum billing payment may not be the total amount you owe. This is common for things like credit cards and other big amounts of debt.

Instead of just paying the minimum, commit to paying off all of your debt every month. If you don’t, you risk accruing interest which can sometimes be just as bad as a late fee.

Keep in mind that long-term loans – like for cars, homes, and higher education – work a little differently. But, there are still ways to lower your interest rate.

3. See if Some Plans Can Be Lowered

Another option you have is to lower your monthly expenses altogether. You may be paying more than you need to for a lot of your services. Consider how much of your phone plan you really use, for example, or how often you take advantage of having cable.

It’s worth talking to your respective providers and seeing what kind of options are available to you. This goes for everything from your phone and cable bill, internet expenses, and insurance plans (for home, health, and auto). Even your water and electric bills can be lowered with smarter habits at home.

4. Refinance Your Mortgage

Speaking of home-related bills like water and electric, how’s your mortgage doing? This is one of the highest average household monthly expenses most people have to budget for.

But, it doesn’t have to be as costly as it currently is! You can refinance your mortgage to create a better monthly payment.

Keep in mind that this may extend the period of your mortgage loan or change your interest rate. It’s also not a way to cut spending that you should do all the time. Still, it’s an option worth looking into to better allocate your monthly funds.

5. Stop Buying Coffee Every Day

There are the big ways to cut expenses like refinancing your mortgage and avoiding late fees, then there are smaller habits that add up.

Your morning coffee doesn’t seem like much if you only spend $2-5 on it. But, if you’re buying coffee every single day (M-F) instead of making it at home, you’re not making the best use of your money.

The average American spends over $1,000 on coffee every year. That’s a thousand dollars you could better allocate to your mortgage, car payment, or savings account.

6. Eat at Home More Often

Coffee isn’t the only expense that can sneak up on you. Eating out as a whole is a big expense for most Americans. Between grabbing breakfast on the go when you’re running late and going out to dinner with friends, you’re probably spending more on eating out than you think.

It’s not like you have to eat at home for every single meal from now on. But, it is smart to create an eating out and entertainment budget and stick to it. This will help you enjoy yourself without worrying so much about your personal finances at the end of the month.

7. Shop Store Brands

Eating at home means you’re going to be frequenting the grocery store a lot more. You’ll start to learn how to stretch your grocery budget even further and create delicious dishes with seemingly simple foods.

More so, you’ll realize just how much you can save by buying store brands! Store brands are equally as good as name-brand products, if not better. They’re cheaper, too – and saving a dollar here or a few bucks there as you go through each aisle makes a difference when you’re checking out at the cashier.

8. Buy Items on Sale or Secondhand

The next way to cut spending is to lower the amount of money you spend shopping for things like new clothes, home decor items, and other miscellaneous goods.

Try to shop secondhand for these things before you drive to the mall. You can do so at thrift stores and pawn shops, or you can go online and check out all kinds of re-sell sites that specialize in everything from clothing to auto parts.

If you do have to go to the store for something, at least try to find a discount code or go during a sale to make your efforts worth the cost.

9. Set up Automatic Savings

Two of the best ways to start using automatic savings are either with your paycheck or your debit card.

If you have direct deposit, you can set up your paycheck so that a certain amount of it goes into savings right away. This will lower your temptations to use your money on miscellaneous things or “splurge” because it will already be put away.

With your debit card, you can look into your bank’s cashback options or use a personal finance tool to help you make the most of every transaction you swipe for. These can help you better understand where your money is going and put some more money away, too.

10. Take Advantage of Free Things

Last but not least, don’t hesitate to take advantage of free things when they’re available to you! This goes for everything from free food at work to free flu shots at the pharmacy down the street. But mostly, free entertainment is what you can save the most with.

You don’t have to go on fancy date nights every week or do expensive things to treat yourself. There are all kinds of ways to cut back on entertainment spending without lowering how much fun you get to enjoy.

How to Identify the Best Ways to Cut Expenses

As great as all the ways to cut expenses above are, they’re better when you utilize them one by one. If you try to wake up tomorrow and do everything on this list, you’re going to be overwhelmed. But, prioritizing the financial decisions that are most beneficial to you is a completely different story.

This makes you more comfortable with taking on debt and improving your personal finances as a whole. Before you know it, many (if not all) of the things on this list will feel natural to you!

For more tips and tricks to improve your financial stability as a whole, click here.

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Credit Repair

Beginner’s Guide on How To Save Money



It may seem hard to justify saving money when you have a low income and high amounts of debt. But there are plenty of good reasons to have a growing savings account, even if you’re putting most of your excess cash into debt repayment.

You Need A Rainy Day Fund

Life happens. Your car breaks down. Your dishwasher ends up needing replacement. You have a medical emergency. A close family member passes away and you need to help cover funeral costs. These things happen to everyone and it would be silly not to plan for them.

We recommend having around $3,000 saved in case of emergency. This money would not be touched at all, and only used if you’re in a situation that you cannot pay for with your job income.

You Want To Have Runway

Runway is a term used to describe the amount of time someone can be without income before they have to resort to taking out debt.

We recommend building up your runway to the point where you have a full year’s worth of expenses saved up.

Once you have 12 months of expenses saved up, you’re much more free to take risks such as going back to school, switching to a higher paying (or more fulfilling) career, starting a business, or investing in real estate.

You might think that it will take years for you to save up this amount of money, and that’s true. But we recommend saving up for this anyway, even if you have debt to pay back.

We’re also going to talk about how you can cut down expenses in such a way that makes this goal a much more manageable one. It’s a lot easier to save $24,000 than $36,000, for example.

How To Save Money

Here are the easy ways to save money:

Look at your income and expenses.

Take a look at all usable sources of income. Only include what you can consider to be income. This includes:

  • Your job income (W-2)
  • Pensions, military benefits
  • Side hustle income
  • Business income
  • Investment income that isn’t being reinvested

If you have unpredictable income (for example, if you’re a freelancer or business owner), you will need to take an average of the last 3-6 months and do budgeting quarterly. The result is that you end up saving money every quarter, piling it up in advance.

Break your expenses down.

Categorize each of your expenses based on what they’re for. Your biggest expenses are likely your rent/mortgage, transportation costs, and debt repayment.

Here are some expense categories you can use:

  • Rent/mortgage
  • Transportation
  • Utilities
  • Groceries and necessities
  • Entertainment (include takeout and restaurants here)
  • Childcare & children’s activities
  • Other expenses

How you categorize your expenses is up to you. Then, you need to take an honest look at your spending. Look at your bank and credit card statements and get the real numbers! Don’t estimate. We recommend using a tool such as YNAB or Mint in order to track how you actually spend your money.

You may notice that we excluded debt repayment. For debt repayment, we recommend snowballing your debt and paying low amounts on the rest of the debt. You’ll need to use a calculator to figure out how much you’re paying every month using this strategy. Learn more about snowballing your debt!

Decide which expenses are the most important.

Take some time to think about this, because even though you want to have all of the benefits of what you currently pay for, not all of them are worth keeping.

For example, you might have an unlimited data plan when your data usage (which you can check on your phone) indicates that you only need a few GB.

Rank your expenses from most to least important. The least important ones will eventually be cut out to support your savings goals!

Cut out any expenses deemed unnecessary.

You decide how you live your life, and you need to choose which expenses you can live without in order to achieve your financial goals.

For example, you might be spending less on groceries and more on takeout. This might seem like it’s saving you time, but it’s actually costing you a fair bit. However, this may not be an unnecessary expense if you find yourself unable to cook your own meals.

Subscriptions are one of the biggest sources of budget burn. There might be a few subscriptions that you use regularly, but most subscriptions provide only a small amount of benefit for a high annual cost. $10/month ends up being $120/year, which could have done into your savings.

Look for any other opportunity to reduce your expenses.

It’s likely that you haven’t made the best financial decisions in the past. That’s okay: many of those can be corrected. For example, if you have an expensive car note, you may be able to sell that car, purchase one for less, and pay down the rest of your car note. This could save you thousands of dollars.

Or, you might find that you’re paying a great deal of money on your mortgage. You may be able to refinance. We have another article on refinancing your debt: check it out for more info!

Decide how much you will save.

Essentially, whatever is remaining after your expenses, debt repayment, and investments should go into a savings account. Your savings accounts should be categorized as such:

  • Rainy Day Fund (put up $3,000-$5,000 in this fund)
  • Runway Fund (put up to 12 months expenses in this fund)
  • Large Purchase Goals
    • Our recommendation is to focus on these things, in this order. If you don’t have $3,000 for a rainy day, or if you recently spent your rainy day fund, you need to put money in that fund before you put money elsewhere!

      How much you save and how much you invest will depend on your own personal preferences. We recommend maxing out your 401(k) plan and taking advantage of employer matching.

      Keep in mind: someone WITH debt should not be saving as much of their income as someone without debt! If you have debt, you should be putting your money into paying it off, as that will save you the most money in the long run due to accruing interest!


      Beginner’s Guide on How To Save Money

      Article Name

      Beginner’s Guide on How To Save Money


      The beginners guide on how to save money teaches top ways starts from looking at your income and expenses and much more. Read out the complete guide here.


      Jason M. Kaplan, Esq.

      Publisher Name

      The Credit Pros

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Credit Repair

How To Get Your Annual Credit Report for 2020



One of the most important aspects of financial discipline is to understand your credit history. If you understand what’s on your credit report, you can see what information lenders are using to determine whether or not you qualify for loans. You can also see what they’re using to determine your credit score. Keep reading this blog on how to get your annual credit report for 2020 in free.

Certain items on your credit report may be hurting your credit score. However, it’s possible that those items aren’t supposed to be there. There are laws surrounding what credit bureaus can legally keep on your credit scores. Despite this, mistakes do get made sometimes.

You also may be a victim of fraud, but you might not know it. Some fraudulent items can exist on your credit report and hurt your credit score, even if they’re clearly evidence of identity theft or some other crime.

The good news is, you don’t have to be left in the dark about your credit. The US government guarantees every US citizen the right to a copy of their credit report once every year. Best of all, the US government mandates that the credit bureaus provide this report for free.

So how do you get your free annual credit report for 2020? Let’s discuss.

What Is A Credit Report?

Your credit report is an annotated history of your debts. It’s used by lenders to see your overall credit history.

What Information Does A Credit Report Contain?

Your credit report contains information going back up to 7 years for most things, 10 years for other things, and past that for a select few items like tax liens.

It contains a history of payments made on your debts, including but not limited to: credit cards, car loans, mortgage, student loans, and lines of credit. It also contains a history of balances held on those items.

Your credit report also contains information about past due payments, items in default, items in collections, and bankruptcies. This information is highly useful for lenders and employers who don’t wish to rely on just a credit score.

What Is Your Credit Report Used For?

Items on your credit report are used to calculate your credit score. Your credit score is a three digit number between 300 and 850 that gives lenders a general idea of how creditworthy you are.

However, lenders don’t just want to see your credit score. They also want other info, such as your income, your total debt balances, and your debt payment obligations. Although your income isn’t included in your credit report, the other items are. For this reason, lenders don’t just want to look at the credit score: they want to see the whole picture.

To learn more about your credit score, read our article on the quick & dirty guide to your credit score!

How Do You Get A Free Annual Credit Report for 2020?

It’s very easy to get your free annual credit report for 2020. All you have to do is go to the Free Annual Credit Report website, located at This domain is owned by the US Government, and is the only place that you should go in order to get your free credit report.

To get your free credit report, go to that website and follow the instructions. You can get a credit report from each of the three bureaus, for a total of three credit reports per year.

IMPORTANT NOTE: You can get free weekly credit reports from each of the three credit bureaus until April 2021, for COVID-19 assistance. This way, you can get more than three credit reports this year for free.


How To Get Your Annual Credit Report for 2020

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How To Get Your Annual Credit Report for 2020


Your credit report is an annotated history of your debts. So how do you get your free annual credit report for 2020? Let’s discuss.


Jason M. Kaplan, Esq.

Publisher Name

The Credit Pros

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Credit Repair

The Difference Between Your Credit Report & Your Credit Score



When most people think about “good credit”, they think about high credit scores. Any credit score above 800 is considered “excellent”, regardless of the circumstances behind the score. Keep reading this blog to know the difference between credit score and credit report.

But there’s much more to credit than a three digit number. Every person has a credit report, which is a compiled history of their loans, payments, and available credit.

What is the difference between a credit report and a credit score? Let’s discuss both in detail.

What Is A Credit Score?

Your credit score is a number between 300 and 850 that represents how creditworthy you are. The higher the number, the more creditworthy you appear to lenders.

Your credit score should not be used as a gauge of financial success. Many people with low incomes have near-perfect credit scores, if they know how to handle money. Likewise, many high-income earners have low credit scores due to past borrowing history.

What Is Your Credit Score Made Of?

Your credit score is calculated by proprietary formulas owned by the credit bureaus. These formulas were originally developed by the Fair Isaac Corporation, known as FICO today. For this reason, credit scores are still known as FICO scores.

The reality is that you have multiple credit scores, used by different lenders for different purposes. This isn’t something you should concern yourself with, as the credit score you get when you check it is an accurate representation of what lenders see when they process your loan application.

FICO scores are calculated using 5 different criteria that are considered to be relevant to your creditworthiness. These 5 criteria are:

Payment History: 35%

Payment history describes a history of payments made toward the balance of loans. It includes loans that have since been paid off.

This is negatively affected by past due payments and loans that have gone into default due to these past due payments.

Amounts Owed: 30%

Amounts owed, also called credit utilization or available credit, describes how much money you owe compared to the amount of credit you have available to you.

This is negatively affected by having a large amount of debt outstanding compared to the amount of credit you have. For example, if you have a $10,000 credit card limit and you owe $9,000 on it, you’ll see a negative effect on your score.

Age of Credit Accounts: 15%

Also known as credit age or length of credit history, age of credit accounts describes how old your oldest account is and the average age of your credit accounts in total.

This does not just include credit cards, but loans, mortgages, and lines of credit.

If you’ve had a longer credit history, you will be positively affected.

Credit Mix: 10%

Credit mix describes the different types of credit you have available to you.

If you have a car loan, a mortgage, credit cards, and personal lines of credit (and you’re up to date on all of them), you will be positively affected.

New Credit: 10%

New credit, or credit inquiries, describes whether or not you’ve applied to open new credit accounts.

This is usually not a big deal, but if you open a lot of credit accounts in a short period of time, you will be negatively affected.

What Is A Credit Report?

Your credit report is a comprehensive history of your credit activity.

It shows a variety of things, such as bankruptcies, loans in default, payments made, outstanding balances, and much more.

Your credit report does not come with a number attached to it. Instead, it only describes your credit activity.

Lenders look at your credit report in tandem with your credit score in order to find things that may indicate that you’re not a creditworthy borrower. For example, your credit score cannot tell a lender if someone has had a recent bankruptcy. It’s not a descriptive measure. Instead, the lender will look at the credit report to see if there are loans in default, bankruptcies, tax liens, or if you simply have too much debt outstanding to qualify for the loan.

You can get a free credit report every year by going to which is a site run by the US government. This can be used for all three major credit bureaus: Equifax, TransUnion, and Experian. Therefore, you’re entitled to three credit reports every year; one from each of the bureaus.

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