Part of getting out of debt includes cleaning up your credit. The best way to clean up your credit is to make your monthly payments which means all your bills on time all the time, every month. Making even one late payment can set you back up to a year. The easiest way to prevent this put your minimum payments on auto pay (the best way and you can always pay more) or pay your bill as soon as you receive it. I used to wait until the very last day possible to mail in my payment. But the problem with that was if I forgot about the bill and mailed it out late, or spent more money cause I thought I'd have the amount in time to pay the bill and didn't. I would wind up throwing my money away on late fees. So don’t let all your hard work in rebuilding your credit be destroyed by one late payment. Also paying off your debt quickly helps with rebuilding your credit, your credit worthiness and may help in reducing high interest rates in the future. So as your credit improves you can ask for lower interest rates. Even if they say no, every 6 months ask again if you’ve made all your payments on time, eventually they may lower it (and every little bit helps). Reducing and/or eliminating your debt will be one of the best ways to improve your credit. And when you do charge something pay the bill off each month. Keep your balance under control (remember make it a goal to only have one credit card, get rid of the rest). Keep your credit card limits low, so if your bank wants to raise the limit on your card, ask them not to. This way you won’t be tempted to charge more than necessary.
Live within your means if you can’t pay cash for an item forgo it. Remember the goal – to be Debt Free!
Using Debt Consolidation Agencies
Paying Off Your Highest Interest Debt First
Paying Off Your Lowest Balance Debt First
Return from Cleaning Up Your Credit to Get Out of Debt
Return from Cleaning Up Your Credit to Home
Start Small and Watch Your Savings Grow
It is better to have tried and failed than to fail to try.
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Remember Think
Be Debt Free
