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You have plans for your future - maybe a new house some day, or a new car to replace the worn-out junker that you commute back and forth to work with with every day. Perhaps you are looking forward to the day when you can give your kids a real head start on life by sending them off to the college of their choice. All these things, and a million others, create a need for loans and financing. We live in a credit driven economy and unless you have a tree that grows dollars you will never outgrow your need for credit financing of one sort or another.

More than ever before Americans are dealing with the current credit crunch by keeping as much cash on hand as they dare. Sometimes too much. They are not paying their bills on time. Whether there is too litlle cash available to meet all the family's obligations in a timely manner, or whether people are just hanging onto their cash because of concerns about what will happen if they do not is not certain.

The blowback that is coming back on American consumers, however, is clear as a bell. The average American consumer is paying 2.6 bills late every month, and that number is expected to continue to rise into the future as national unemployment figures keep increasing, according to the Western Union Payment Services Money Mindset Index.

Unfortunately, late fees and additional unnecessary charges can stack up quickly, raising your credit card interest rates to astronomical levels, depleting your cash reserves and damaging your credit score. Find out where you stand on the FICO score chart. Too many people do not realize how important their credit score or that they are paying hundreds, maybe thousands, of dollars more every year in interest payments that would have to with a higher FICO score.

The longer you keep your credit report clean by paying your bills on time, the better your credit score, according to the Fair Isaac Corporation, which created the FICO score algorithm, more commonly known as a credit score. Your timely payment history accounts for as much as 35 percent of your credit score, which is used by all kinds of lenders to determine your eligibility for mortgages, car loans, credit cards and other financing.

However, 30 day late bill payments will lower your credit score - and there's no getting around it. When you apply for a loan, a low credit score will increase the interest rate you and may thwart your efforts to get the financing entirely. The answer to how can I fix my credit is more important than ever.

"Managing your finances can feel like a juggling act that won't end," says David Shapiro, senior vice president of Western Union. "Flexible payment plans can help consumers keep their cash flow strong by timing the paying of bills to when they get their paychecks. This allows you to avoid late charges and risk thier credit standing. Over time, consumers can build a strong credit history, allowing them to finance a car or a home when they are ready."