Bad credit can affect your job prospect

You've networked your way into a job interview. Your background is perfect and your references are impeccable. An offer may be coming. Then the hiring manager says they just need to do one more thing: run a credit check.

Depending on the kind of position you're looking for, a high credit-card balance and a few late payments -- which may have happened because you've been out of work -- now threaten your chances of receiving a job offer.

Forty-two percent of employers, including the U.S. government, run credit checks on job candidates, according to a 2006 survey by the Society for Human Resource Management. Most often credit checks are due diligence on potential employees who would have some contact with money, from CFO to clerk.

To Buy Stuff While Still In Debt

It's recommended that you wait. Sometimes things are necessities and you must buy. However, most things are not. If you want to purchase sport rims, you should wait until you pay off all your debts. Sport rims are not something you need. Being out of debt so that your family can live and save is more important than buying the sport rims. Try look at priorities. As long as you have what you need to physically survive, very few things are more important than getting out of debt as quickly as possible.

Sometimes people borrow money to pay off debt, and they just go deeper and deeper into debt. When you have more money going out than there is coming in, you are simply borrowing to pay your bills.

How to Avoid Trading Your Life with Your House

If you've ever been in the market for a home, you can relate - You walk into the "perfect" home, and you can't believe it's still on the market. The family loves it, you love it, the location is perfect, and the price tag is...well, a "little more than we wanted to spend."

By now you're drooling over the home, the family has emotionally committed, and the sudden pressure to make the numbers work begins to overtake you. The realtor mentions "alternative financing options" that are sure to get you into the home and keep the payments affordable. In a few hours on a Sunday afternoon, you've gone from financially responsible to being ready and willing to do almost anything to get this perfect house!

Never make a permanent decision based on a temporary emotion! Remember this on every outing with your realtor! When you come across a home that seemingly fits all your wants and needs but breaks the budget, the temptation to get way too creative in your financing can overtake you.

Always know your boundaries before even looking at homes! Nothing is more frustrating than making a quick decision on something as large as a home, only to realize you've just traded your life for a house. It happens every day when people choose to put emotion above sound financial principles. Remember that once you take out a mortgage, the payments NEVER drop unless you pay the house off in full or refinance later. Additionally, while using financing tools such as an Adjustable Rate Mortgage (ARM) or balloon mortgage may give you lower payments, they also translate into little or no equity for 5-10 years.

The best way to combat buyer's remorse is to avoid it. Always have a financial plan in every situation. This plan should tell you how to behave with money instead of letting your emotions control your choices.

One suggestion is to take fixed-rate, conventional mortgages, specifically a 15-year fixed. It is recommended to put a minimum of 10% down, preferably 20% to avoid paying Private Mortgage Insurance (PMI). Your monthly payments should never exceed 25% of your net (take home) pay each month.

A sound plan like this:

Sets boundaries for your next home purchase before you even start looking
Builds equity
Saves for emergencies
Sets you free from being a slave to your mortgage

Nothing will ruin a new house faster than paying too much for it. Set your boundaries early, and you'll enjoy your new home for many years to come.