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Disorganized Consumers Losing Huge Money

By Faye Mergel
Published: Monday, January 25th, 2010

Many people think they do not earn enough or are spending too much that is why they are barely able to make both ends meet. Jumping from paycheck to paycheck becomes an endless cycle for them and could at times force them to live on debts. However, experts say, in some cases, those people are neither spending much nor earning too little—they are simply disorganized. Doing a credit report check is one of the best ways to start organizing for financially struggling individuals.

Disorganized Consumers Losing Huge Money Financial adviser and author, Russell Wild, says poor financial planning can cause consumers big. He remarks some people are very well-organized in other aspects of their life, but their financial plan is poorly mapped out.

Wild explained that people who have poor organization are spending big-time on checking account overdrafts, credit card late fees, or tax penalties. Disorganized individuals also have to overspend on last-minute gifts because they do not plan ahead, lose discounts at supermarket or retail stores, fail to get cash merchandise rebate, and even pay higher interest on loans than their creditworthiness deserves.
Finance advisers liken financial organizations to saving cold cash on bank accounts. They advise people whose financial plans do not work to revise their current system. For those who do not have one yet, now is the best time to start.

For starters, they suggest having at least one automatic deposit on paycheck. This allows a person to save money over a period of time.

Additionally, specialists’ advice consumers to keep receipts which they might later on use to file for rebates, return items, or claim tax deductions. For couples, they suggest sharing the responsibility for bill payment to make each other’s financial load lighter.
Consumers who find it difficult to organize their whole financial system in one big bunch can begin with organizing their credit cards. Cardholders are advised not to be late on their payments to avoid losing cash on penalties.

To determine how much they owe and how much more of their income is going to debt payment, consumers are advised to check their credit report.  A credit report allows consumers to see how much debt they owe and to whom they owe it.

Credit report errors and inaccuracies make it all the more important for consumers to pull out their own records, advisers say.  A misspelling of a name or a mistake in street address can easily lead to mistaken identity and out-right errors. Experts also advise consumers to be on the look out for fraudulent items since identity theft has become more rampant these days.

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