5 Lessons from Britney Spears on How to Destroy Your Credit
Should you find yourself a multimillionaire, avoid these obvious financial pitfalls which can wreck your credit. As she so often does, Britney Spears has much to teach us. Here are Britney’s best moves for financial instability:
- Get Drunk or Stoned – Substance excess is costly, even for the ultra rich. A one month stay at famous rehabs can cost up to $80,000 a month (Source: NYPost.com). Should you select a lesser establishment without the 600 thread count sheets and Tai Chi, you’re still looking at $1,000 a week, minimum. Remember also that before you dry out there are the day-to-day carrying costs of the addiction whether it is drugs, nicotine, booze, gambling, etc. With successful rehab you’re bound to recover your cost eventually.
- Sell The House In This Market – In a recent story, Britney slashed her asking price on her Malibu crib by over $1,000,000 just to speed K-Fed out of her life. Bad move. Rule number one in real estate: avoid buyers’ markets and never give up profits due to a need to liquefy assets.
- Mess With Your Cash Cow - When your endorsements and appeal is linked to your long blonde tresses, shearing them off is a bit of a problem. While Michael Jordan racked up several hundred million dollars with that look, Britney stands to lose easily that much. Known as the golden goose, whatever made you your fortune should be preserved by any means necessary.
- Marry Poorly – Recent reports in the press say her ex-hubby laughed at Britney’s divorce settlement offer of $25 million. With friends like these, you can only afford a couple of marriages. Take great care when sizing up a potential life mate as most become inordinately fond of your money and come to think of it fondly as theirs.
- Avoid Panties – Unless you can benefit from peek-a-boo shows captured by paparazzi by selling the photos yourself, cheapening your image is always a bad move. Remember that credit is really just another word for “reputation” so in a global and metaphorical sense, Britney’s finances have taken a huge fall. The sex tape can’t be far behind.
In your financial life, few things figure as prominently as your credit report and credit score. Learning the basics of the credit report process, and keeping your credit report free of errors, is essential to good financial health. You should focus on improving your credit score as the highest credit scores receive the best interest rates and loan terms. On a mortgage, a difference of 100 points could be worth hundreds of dollars each month.
Since 2005, all Americans have the legal right to obtain a free annual copy of their credit report from TransUnion, Equifax and Experian credit reporting bureaus. This law is intended to help consumers reduce errors in their credit reports by minimizing the obstacles to viewing credit reports. To receive a free credit report visit the official site run by the bureaus: annualcreditreport.com
Your personal credit score is a number from 350-800 which stands for your credit risk. The higher numbers are considered less likely to default. Credit scores come from mathematical formulas that measure many variables in your credit report such as payment history, public records, and debt to income ratio.
The Fair and Accurate Credit Transaction Act (2003) amendment to the FCRA Fair Credit Reporting Act guaranteed all Americans the right to see their credit report once a year to check it for errors. To learn more about free credit, credit scores and financial terminology, visit our glossary page.
