Weather Financial “Rainy Days” (NAPS)—Asfamilies take measures to protect their basements from seasonable storms in the months ahead, Loretta Abrams, senior vice president of Consumer Affairs, HSBC—North America, also suggests the following steps to prepare your finances for the proverbial “rainy days.” Know your current credit condition—sunny and clear? Partly cloudy? Raining? A strong and healthy credit score is more important than ever. Aim for a score of 720 or better. Review and take action to correct any errors on your credit report. You are entitled to receive one free credit report annually, from each of the three designated credit-reporting agencies. Request your free credit report at www.annualcreditreport.com or call (877) 322-8228. Maintain and improve your credit score: 1. Pay all bills on time and, if possible, pay more than the minimum. 2. Don’t max out your credit cards (maintain balances at no more than 30 percentof credit limit). 3. Don’t open credit that you don’t need. Bring out your umbrella— knowthe tools to protect your credit and identity Be vigilant to protect yourself from schemers, scammers and identity thieves: 1. Never pay anyoneto “stop your foreclosure” or “clean up your credit report.” 2. Never transfer title to your property to a third party to “avoid foreclosure.” 3. Never share personal financial information with a stranger on the phone. Carefully review every bank statement and credit card billing statement for signs of unauthorized use. Shred any personal documents before discarding. Checkthe forecast Develop a budget plan for now andthe future. Save on routine expenses: Shop the sales, clip coupons and take advantageof free services. Contact your lenders if you anticipate future financial difficulties. If you run into problems with your mortgage and prefer to speakfirst to a trusted third party about your options, call Homeowner’s HOPE” Hotline, 888-995- HOPE. You canalso dial (800) 5694287 or visit www.HUD.gov for a HUD-approved counselor. Build your storm shelter Build and bulk up your emergency fund to cover three to six months of expenses. Do not touch your retirement fund. Seek experts’ advice regarding any needed adjustments. e Ensure adequate insurance protection (health, disability, property and auto). Prioritize paying down debt and pay the credit card that has the highest interest rate. Take advantage of free resources on YourMoneyCounts. com, available in both Spanish and English, to find information that will help you manage your finances and weather the financial storm.
