By Miriam Caldwell. Money in Your 20s Expert
Miriam Caldwell is a freelance writer with a specialty in personal finance. She believes that you can lay a solid foundation by starting to manage your finances in your twenties.
Time Required: A few weeks
This is an excellent time to switch to the envelope budgeting system. You should not resort to using credit cards for the majority of your purchases. You do need to add to the financial mess that got you here in the first place. By switching to cash only you can begin to discipline yourself for when you are able to open an account again. The biggest advantage is that once your money is gone it is gone and there is no way to keep spending it. This does mean that you need to budget carefully.
Additionally, you may consider getting a prepaid credit card to make online purchases or to rent a car. These cards will not allow you to spend
over the amount that you deposit on the card. You will pay a fee every time that you deposit money, but the convenience may outweigh the cost when you are in this type of financial situation.
You should make a commitment that you will begin to live on a budget and get your finances under control so that you are never in this situation again. You may have a few tough years ahead of you, but you can come out ahead if you stick with the program and begin taking control of your spending and saving habits. This will help you to turn this headache into a positive situation. You need to be careful to avoid common money mistakes to avoid problems like this in the future.
If your bank closed your account on you. you likely have a ChexSystem report. It is important to act quickly to repair the mistakes you have made so that you can continue to function financially.
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