Can You No Longer Afford Your Minimum Required Credit Card Payments?
If you no longer can afford to make the minimum payments on your credit card or if you are consistently making late payments, you have gotten in over your head – but you didn’t need us to tell you that, did you! Look, you probably have a professional trainer or you may have a mental health professional (or two) so why not consider getting professional assistance to deal with your debt? By seeking support from a debt management company, consumers can take advantage of better repayment terms – like lowered interest rates and waived late fees – offered by most creditors. However consumers must do their research to find a reputable organization. Consumers should look for a provider licensed by the state they reside in and accredited by the Better Business Bureau.
Work to Raise Your Credit Score!
Many people don’t understand that your credit score is a like a picture (though perhaps not a pretty one): it represents your finances at one moment in time. But how many of us really knows what is represents? Your credit score is actually based on five criteria: payment history, percentage of available credit, length of credit history, recent efforts to get more credit and the mix of credit types you use. By responsibly managing the credit cards you do maintain – making your payments on time each month and keeping your balance under control – you should see your score improve, but don’t expect miracles overnight. Give yourself six months before you check your credit score again, and you should see improvement.
This summer, instead of stressing out that you have credit card card debt (who needs that in addition to the stress of swimsuit shopping?) commit to making at least one small change that will move you closer to living debt free. Many of us wait around hoping to make one drastic move that we hopefully fix all of our financial woes. However, the reality is, the longer you put off paying off your debt- THE MORE YOU OWE! When it comes to getting out of debt, BABY STEPS are BIG. Before you know it, you’ll be getting in touch with your very own inner debt diva!
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My goal is to use my credit card for emergency only, and if I do have to use it, I promise myself to charge only what I can afford to pay in full each month. It is not easy, but I am almost there. Who wants to pay those high interest rates?