First, in order to take a good look at your financial situation, you need to figure out your net worth. The bottom line on the balance sheet will tell you your net worth. The income statement will show your profitability. What you decide to do with your profit is up to you. Effective use of your profits requires good financial decisions.
Many people use their profits to pay credit card bills.
Having a wallet full of credit cards is no longer a status symbol. Having three or four major credit cards, along with various department store cards and gasoline cards, is a waste of money. Third, get a copy of your credit report. TRW Information Systems will provide one free copy of your credit record a year. Check your report for errors or information you would like to dispute.