The Ultimate Checklist for fixing your Debt
If you feel another year is passing by and you are just getting deeper into debt, then this article is for you. Take these steps now to reduce your debt and fix credit problems.
Transfer your balance to a low-rate card
This can work, but it will only work under certain circumstances. A zero percent teaser offer can be a very good option if you are planning on to pay off your balance completely and you don’t charge anything else on your card. However, it is important that you make sure that the lender does not charge any balance transfer fees, and always beware of “Terms” that can be changed at any time. Also, you can also negotiate a lower rate. This is only possible if you have good credit ratings.
Close unused cards
If you never use a credit card and it’s just lying around, then close the account and cut up the card as this will discourage any identity theft. Make sure that you get rid of newer cards first. Having a lengthy credit history with just one single lender will help you improve your credit score in the long term.
Steps that you can take to improve your credit score
Consider a secured loan for debt consolidation
Have a single monthly payment to help you chip away at your debt in a swifter manner. If you make all your payments on time, your credit score will improve drastically.
Try limiting yourself to three or four cards
Every new credit card application that you make results in a credit-report inquiry by the bank or the financial organization. This will cause your credit score to drop significantly, and this is exactly what you should be avoiding in a debt situation. So, ensure that you don’t go beyond a couple of cards.
Write out a strict budget for yourself and stick to it
Although it sounds like a no-brainer, it’s surprising how many people fail to follow this through. If you are desperate to improve your credit score and are serious about it, then the best way to improve your credit score is by cutting all unnecessary spending. By doing so you can redirect all extra income to your debt paying process and soon you will be out of your debt crisis.
The path to a fixing your debt won’t probably be a smooth ride but if you are willing to stick with some of the ideas in the checklist you surely can achieve financial freedom. Some of the tasks will take longer than others so it’s best to hit on a few at the same time. Make fixing your debt a family goal, and get the worry off your head.