How One Late Payment Can Kill Your Credit Score

Don't Be LateRecently, FICO gave a small peek behind the curtain at how their scoring model works and showed just how much mortgage delinquencies affect your credit score.  The example they gave drew attention to three different FICO scores on the higher end of the spectrum (680, 720, and 780) and how one late payment of 30 days affected each score.

According to FICO, the impact of a 30-day late payment on a consumer s mortgage varies greatly depending on how high the consumer’s credit score already was.

They broke it down like this:

Book Review & Giveaway: Debt Free For Life by David Bach

I’m excited to review David Bach’s new book entitled, Debt Free For Life!  I’ve been a fan of David’s books since his very first bestseller, The Automatic Millionaire.  David writes in a very easy to understand, logical sort of way which allows readers to follow his advice easily.

I remember the first time I picked up one of his books, I was at Barnes & Nobles.  I sat in a corner for an entire hour and read the book from cover to cover.  Sorry David!  I know I should have bought it instead, but I was practicing my frugal ways at that time in my life.  Actually, I still am.

For someone who is in debt, and who has never read any of David’s books, I highly encourage you to read his latest, Debt Free For Life.  Given I’ve read practically every single one of David’s books, it’s hard for me to learn anything new.  That’s somewhat of bummer since I was hoping there would be something as innovative as the “latte factor” was 10 years ago.  Still, if you’ve only read one or two of his books and are on a mission to pay down debt, this book is perfect for you.

One of the best things about book reviews is access to an author’s mind.  I ask David five burning questions to challenge him beyond the plain vanilla, and to my delight he answers most of them quite directly.  Hope you guys enjoy the insight!  There are three books to giveaway at the end of the interview!

FINANCIAL SAMURAI QUESTIONS FOR DAVID BACH

The Best Way To Lose Weight And Become Debt Free

Yesterday was one of those perfect gastronomic days.  For breakfast, there was all you can eat fruit and pastries.  For lunch, some deliciously “low calorie” Greek baked spaghetti with garlic bread you see to the left.  To top off the evening, a bone-in filet mignon, with baked potato with the works, blue cheese wedge salad, and a couple glasses of pinot noir from Napa Valley.

All told, I probably consumed some 5,500 calories worth of food!  I didn’t feel incredibly sick to my stomach (OK, maybe a little bit!) because I made sure I played an hour and a half of tennis before dinner.  It was actually a wonderful experience since I normally eat half as much.  When I was in the cab ride home, I had an epiphany.

Perhaps the reason why there are so many large folks in America is because people purposefully gorge themselves in order to lose weight!  Eating great food is such a wonderful pleasure that it’s irrational not to.  It trumps any negative feels about packing on weight otherwise we wouldn’t let ourselves go.  Furthermore, the reason why there are so many people in debt is because it’s just so rocking fun to spend money you don’t have!  Finally, it feels great once you pay back that debt!  Double pleasure going both ways is why there is such a correlation.

GAINING WEIGHT IS THE PERFECT SOLUTION

Blink And Blink Again

It’s safe to say that before you began reading this post, you had no idea you were blinking.  Blink, blink, blink.  Whatcha going to do about it now that you are aware of your fluttering eyelids?  My guess is that your memory will last as long as a gnat, and you’ll forget as soon as you finish reading this post.

It’s amazing how we can blink roughly 36,000 times a day and not even be aware.  Yet, if we were to be consciously aware of our need to blink, we’d probably drive ourselves mad.  How great it is that our bodies protect ourselves from insanity by doing the things for us we have no desire of doing ourselves.

SUDDENLY YOU’LL WAKE UP

Sun Tzu’s Art of War Applied to Your Battle Against Debt

“Every battle is won before it is ever fought.”

This was the infamous line said by Gordon Gekko in the popular 1987 film Wall Street. Derived from Sun Tzu’s Art of War, a 2400-year-old Chinese text on military strategy, the teachings of this tactical mastermind have proven useful in various aspects of present-day life besides warfare.

Although Sun Tzu’s Art of War is studied most religiously by military commanders, political leaders, and corporate executives, the concepts are scalable to conflicts as minuscule as your struggle with debt. Like in war, where the objective is to overcome the enemy resistance, it is everyone’s goal to conquer their personal debt.

Debt is the bad guy. We are the good guys. The road to financial independence is a righteous path where we’ll have multiple encounters with debt – a merciless obstacle that seeks to consume us. Luckily, an old man from many many years ago jotted down some powerful advice that may serve the purpose of securing a victory against debt.

Universal Debt Teachings