Lots of Americans have damaged credit and many others have bad credit. This is a difficult situation to be in because if you want to buy a car or if you want to rent an apartment, even get a job, it is likely your credibility will be checked.
So, instead of wallowing in your pit do something about it. You have all the control in the world to improve your financial situation so start doing something about it today.
The following suggestions will give you the information you need to get started cleaning up your dues.
Tip 1. Pay Off Debt
The first thing you need to do in order to clean up is to start paying off some of that debt. You can't be debt free if you don't pay it off, so go ahead and make a plan to pay your debts.
You need to sit down with a pencil and paper as well as, your entire due accounts so you can make a list. Include how much you owe, the interest rate and the minimum monthly payment.
Doing this will give you an idea of what needs to be paid off first, like the high interest debt, and how much in total you owe. Many times people are unaware of how in deep trouble they are simply because they don't have one 20,000 dollars credit line. Instead, they have multiple cards with 1000 dollars limits that together equal a large sum of money but separately don't' seem so bad. When you realize the situation you will find it is a lot easier to start paying off.
Tip 2. Pay On Time
Paying your bills on proper date is incredibly important from a credit standpoint. Every time you make the payment late you get a ding in your credit. The more dings you get the lower your score goes. So, always make the payments of your bills on time.
The easiest way to do this is determine how much money you need each month to make payment and set aside an account specifically for bill money. Then, when the due date rolls around you can easily clear the dues because the money is right there.
Once you start paying your bills properly your score will turn around and start inching up. In time, enough on time payments can bring a big difference in your score. Cleaning up your dues won't be done soon this way but you'll get a better score, and it will work. Simply pay your bills on the date given, don't spend, and watch your score rise.
Tip 3. Leave The Cards At Home
The hardest thing for many people to do is stop spending. This is especially so when they have made significant progress and have a good limit left on their cards.
Then, they are out and about and they see something they really want. They instantly remember they have enough balance to buy it and then they begin to struggle with the right decision.
Many times the desire for a flat screen TV or for anything else can be so strong that it weighs out everything else even in the face of reason. So, you will need to simply leave your debt cards at home. That way, no matter if the object is cool or sweet you can't buy it because you have no money.
|
