Did you know that the average American was up to $6,375 in credit card debt? Clearly, something needs to be done. Resolving your debt and credit trouble shouldn’t be so difficult—if you put in the effort.
Keeping your debt under control and maintaining a good credit score can a) lead to a better job; b) low-interest loans and c) ease in renting an apartment.
Here’s how you can live a stress-free life by taking care of your financial obligations.
Control Debt Before It Controls You!
· Avoid Revolving Debt
If you owe your credit card company even a dollar at the end of each month, it’s called a revolving debt. Every time you whip out that card to buy something, you’re charged interest on that charge from the day you made the purchase. Pay your monthly credit card balance in full.
Pro Tip: Use a different card with zero balance to make a purchase in case you are carrying a balance on a credit card.
· On-Time Payments
This might seem obvious, but it’s surprising how many people ignore this. Timely payments are one of the key factors judged on your credit history.
Debts that have high-interest rates should be paid off first. That’ll likely be your credit card debt and will be costing you the most money at the end of the day.
· Save Those Savings
If you really want to control that debt, practice using in–coming cash flows to repay loans instead of savings. Pulling money out of your savings only increases the risk of driving your credit card bill up again.
Improve Credit Score
· Don’t Just Pay the Minimum Balance
Paying more than the minimum balance will only allow credit card companies to charge interest on your account. This way, it’ll be a long time before you’re able to finally paying off your credit card balance.
· Check and Fix Credit Reporting Errors
Credit bureaus can and do make mistakes in reporting your credit history. These errors can do a number on your stellar credit score.
You can get your annual credit report from the website Annual Credit Report. You can contest information on your account by simply filling out an online form.
· Keep Your Accounts Open
It is a good practice to show lenders your complete credit history. This means that closing off accounts paid in full is not a smart move. You have a higher chance of receiving a good credit score if lenders can see your entire credit line.
· Break Bad Habits
- Using multiple credit cards
- Neglecting your credit card statements
- Maxing out a card
- Not paying credit card balance in full
- Buying things you know you cannot afford
Leave It To the Professionals!
Our clients are offered a free consultation and credit evaluation. We provide credit monitoring services, fast credit repair, credit monitoring, and business credit services at affordable fees. Time to take back your financial freedom!