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Paul Yamilkoski

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What a Hurricane can teach us about our credit

Hurricane Matthew is steaming it’s way along the east coast of Florida, tearing up the shoreline and coastal developments as it goes. Because of the unique track of the storm, those of us in central Florida were anticipating one of the worst hurricanes to hit the are in more than a hundred years. We were told to brace ourselves for the possibility of winds in excess of 100 miles per hour, heavy rains, flooding, extensive power outages and everything else that comes with such a storm. People were urged to evacuate low lying areas, especially those near rivers, and moble homes, as the storm approached.

Floridians have seen their share of tropical storms and hurricanes. The majority of those who live in central Florida have seen these storms come and go never experienced the major impact that was forecast. As a result, there were many here in central Florida that once again did not really worry about the warnings and preparing too much and instead held hurricane parties.       ABC_10616_MatthewForecast.jpg

Matthew was expected to make landfall near West Palm Beach and scrape the coast as it moved north, allowing the storm to continue to build from a category 4 hurricane to possibly a category 5, instead of losing energy as it hit land. I watched the progress outside periodically through the night, waiting for the winds to start howling. They never did. It turned out the storm track had moved east, about 20-30 miles further off the coast than initially thought, and we were spared the fury of the storm.

This had me thinking about credit. Credit is always jumping into my mind. I already have some people telling me "I told you nothing would happen". They were right. But this storm was different than any they had experienced before, due to the strength and track it was following. Had it not moved east and instead either stayed on the projected track, or worse, moved inland 10-15 miles further than planned, they could have been facing catastrophic loss instead of saying "I told you so". A mere matter of miles could have made a huge difference.

Our credit life is very similar. Every decision and choice we make can have a significant affect on our credit, depending upon how the circumstances play out. 

Many clients, that I have worked with, never had an emergency fund. They didn’t see the need to prepare in that way, since nothing had ever really happened to them and they thought the odds were it never would. I especially see this in young clients. Young people think they are bullet proof and nothing will happen to them. Then there is a portion of those unprepared clients that strangely had the idea that it was not their responsibility to prepare, the government was responsible to take care of them if something big happened.

Then there were clients that were constantly leveraging their buying decisions, buying things on credit when they didn’t have the money to pay it off, with the constant thought that they would be able to pay for it later. They never seriously considered that something as simple as a car breaking down, or being sick for a few days to a week , or going to the doctor would create a huge swing in their income and cause major credit problems. I have also often been amazed at how easy is seems to be for people to to make a purchase, thinking they can repay it, and then make more purchases the same way, without considering all of them together, and so way out spend their ability to pay it off.

One of the most common items to appear on credit reports are medical collections. Some people don’t get medical insurance because they don’t think they will need it or that someone else will pay for it. Others think that because they have insurance, that they don’t have to pay any attention to if the insurance actually gets billed properly, as if it is the medical facility’s problem to deal with, when in reality it is the patient’s responsibility to make sure the bill is paid one way or another.

The thing I want to get across is that, much like when a hurricane is approaching, preparation, planning, and paying attention to how things are actually progressing can go a long way to preventing or limiting how circumstances will affect your life and your credit. You may get the feeling that you prepared for nothing at times, but the reality is that a little effort on a regular basis can save you from a significant amount of distress and cost later.

I welcome your comments and and questions and ask that you share this information with your contacts on social media.

If you are finding you have some problems with your credit scores, a reputable credit restoration company like Heartland Credit Restoration is a great place to turn for help. We at Heartland Credit Restoration are all about helping people get positive control over their credit, and the more people that know this kind of information, the better.

If you are facing credit challenges, or you have a client that you are going to have to turn away due to credit challenges, then I encourage you to give me a call. We can look at how Heartland Credit Restoration might be able to help you turn things around and get that credit loan ready. There isn’t a better company you can go to for help.

 I will look forward to talking to you and I hope you have a wonderfully blessed day!

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