Never make minimum payments
One common credit mistaking is assuming
you can get by making minimum payments. The less you pay, the more
interest you accrue, which leads to a larger balance. Credit card
balances can quickly snowball, wreaking havoc on your financial health.
The more money you can pay toward your principle balance, the less you
will spend on interest. Focus your efforts on the credit cards with the
highest interest rates first and work your way down from there.
Avoid late payments
Even a handful of late payments can cause serious damage to your credit score. Lenders use your credit score to determine what type of risk you pose as a potential borrower. While an occasional 30-day late here and there will not significantly lower your score, a series of late payments or severely delinquent accounts can rapidly drop your score. Once your credit is damaged, it is difficult to repair. A seriously low score can take years to recover. Stay on top of your bills and use credit sparingly to avoid getting in over your head. Avoiding late payments is one of the most important parts of making credit and debt management work to your advantage.
Even a handful of late payments can cause serious damage to your credit score. Lenders use your credit score to determine what type of risk you pose as a potential borrower. While an occasional 30-day late here and there will not significantly lower your score, a series of late payments or severely delinquent accounts can rapidly drop your score. Once your credit is damaged, it is difficult to repair. A seriously low score can take years to recover. Stay on top of your bills and use credit sparingly to avoid getting in over your head. Avoiding late payments is one of the most important parts of making credit and debt management work to your advantage.
At CredAbility, certified counselors help consumers determine
whether they can tackle their financial challenges through budgeting and
reduced spending, or if the structure of a debt management plan will be
more effective.
The key to reclaiming your financial independence is recognizing
the need for help and getting it. At CredAbility, certified counselors
will help you evaluate your financial situation and find the solution
that best suits you. For more information on Debt Management Plans or to
talk with a certified counselor about your options for a debt free
life, contact CredAbility at 800.251.2227 or online at
www.CredAbility.org.
read more at Debt Consolidation Counselling
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