Sunday, August 4, 2013

Debt Consolidation Counselling

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.
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.


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