As you probably already know, your credit score plays a very important role in your life, and it is crucial that you know how to maintain a great credit score. In Essence Magazine's September 2009 issue, I found an excellent article entitled "Take Charge of Your Credit!" by A.M. Rusin. It encourages readers to protect their credit scores by 1) opening all mail, 2) making timely payments, 3) staying out of the credit danger zone, 4) reassessing credit, and 5) getting a fixed rate on credit cards. Among all these tips, it is important to highlight #3: staying out of the credit danger zone. Be aware that "issuers are looking for red flags indicating a consumer is in trouble ... Late payments, high balances and cash advances could be a sign of cash flow problems and prompt a change in terms. If issuers sense you're at risk, they may assess a monthly fee, lower your credit line, or raise your APR," says Gail Cunningham, spokesperson for the National Foundation for Credit Counseling (nfcc.org) (cited in "Take Charge of Your Credit"). 
We may live in a "spending is cool" culture, but I very much encourage you to think twice before purchasing something on your credit card if you don't believe you can really afford it. My personal motto with credit is: if I can't realistically pay off my credit card this month if I purchase this item, I can't afford the item right now. The motto may sound a bit restrictive, but it definitely helps to maintain a good credit line and reduces the opportunity to rack up a exorbitant amount of credit card debt. In Essence's "Take Charge of Your Credit" article, it provides 4 ways to protect your credit score:
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Payment History. "Grace periods are shrinking," states Gail Cunningham, spokesperson for the National Foundation for Credit Counseling. "Open your statements the day they arrive."
Amounts Owned. "Don't carry a balance that is more than 30 percent of your available credit because having higher ratios can begin to negatively affect your score," says Bruce Cornelius, chief marketing officer for CreditReport.com.
Length of Credit. "Don't get angry and close an account," warns Cunningham. Your credit history is calculated as an average, so a one-month-old account averaged against a ten-year account will shorten the history and lower the score.
Types of Credit Used. Be wary of 0 percent interest or no-money-down offers. If you do use credit for a large purchase, know that installment terms have a more positive impact because the terms are fixed.
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For those of you that are trying to increase your credit score, don't fret. I very much encourage you to check out the Suze Orman Show or go to the library or bookstore and check out her books. She offers sound and excellent financial advice, and is very clear and concise with her commentary. I would also suggest ordering a copy of your credit report (you can get it for free at annualcreditreport.com once a year).
Take Charge of Your Credit
Claiming Your Victory in Troubled Times, Part II
In response to the comment in my blog posting below, "Claiming Your Victory in Troubled Times," I decided to make a follow-up post that provides more detailed advice and information for those who are dealing with hardship and anxiety during these tough economic times and are looking for some concrete advice. Lo and behold, I tripped upon an interesting article in one of my favorite magazines, "Essence," which provides some good advice for those who are interested in confronting their anxiety and looking for solutions:
As a part of an article entitled "High Anxiety," (p. 110) featured in Essence Magazine's March 2009 edition, Angela Neal-Barnett, Ph.D., offers some advice in her piece entitled "Transforming Anxiety Into Action," providing tips on how to draft a plan "with measurable results and time frames," using the following steps below:
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1) Turn Your Worry into A Goal
"I'll never pay off all these bills" becomes "I want to be free of all credit card debt by 2015."
2) Figure out what specific actions will get you to your goal.
Do you need to look for a part-time job on the weekends to earn an extra $100 a week? Do you need to work an extra five years before you can retire?
3) Work around stumbling blocks.
In the past, what has stopped you from reaching your goal? Be honest. Perhaps, for instance, you've been stashing away your credit-card statements without reading them. Make opening your mail the first thing you do when you come home.
4) Measure and monitor your progress.
Will you, for instance, check in with a debt counselor once a month to stay accountable to your credit-card repayment schedule?
5) Congratulate yourself periodically.
As you reach a milestone, indulge in a treat that will keep you motivated.
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Dr. Neal-Barnett also provides advice in another segment of this Essence article, "High Anxiety," in a piece entitled "3 Steps To Serenity," below:
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1) Deconstuct Your Demons. "What we say we're afraid of is really our core fear," says therapist Angela Neal-Barnett, who suggests leading yourself in what she calls the "so what?" chorus. Ask yourself what's so troubling about the dreaded consequences, and drill down until you get to their emotional root. For instance, a sister panicked about her plummeting 401(k) may initially say that she fears losing everything. So what? She may delay retirement another 15 years. So what? She doesn't want to work for the rest of her life. That's the core fear - working herself to the grave - not postponing retirement. With that knowledge, she can work with an adviser to figure out measures (such as catch-up payments and additional revenue streams) so that she may only have to raise her retirement age five years or so.
2) Stay in the moment. Once you've figured out the "so what," stop dwelling on the what-ifs. Lama Choyin Rangdrol, an African-American Buddhist meditation teacher and the founder of Rainbowdharma, suggests this exercise: Inhale and imagine the air is cleansing your body. Then exhale as you imagine the air clearing out the confusions, stress and anxiety. Use it to put the breaks on runaway thoughts.
3) Get treatment if you need it. See a medical, mental health or substance abuse professional if anxiety interferes with your sleep, work, appetite or other aspects of your daily life for a prolonged period.
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I am no stranger to anxiety and stress, so I empathize when others are searching for advice and crave some sort of concrete advice for their various circumstances. I hope these pieces from this March 2009 Essence article ("High Anxiety") are helpful to those of you out there looking for some piece of mind in this headache of an economic mess. These tips, in addition to the many more provided by other experts, should help mitigate some of the anxiety that you may be facing at the moment. 
