A budget can help you get rid of debt and improve your credit. Use the following steps as starting points:
Step 1: Establish a plan to reduce and eventually eliminate credit card use. Once you’ve stopped using the card(s), focus on getting rid of the debt. Use your budget to plan and record how much of your monthly income can go towards paying down debts. Choose a priority account to receive more than the minimum payment, while paying minimums on the rest. Once the priority account is paid off, apply that payment to the next priority account to redouble your efforts and eliminate debt more quickly.
Step 2: Achieve and maintain a good credit score. You need to understand what influences your credit score, and you should monitor your credit reports for inaccuracies or suspicious activity that could mean you’re a victim of identity theft.
30% of your credit score is determined by “utilization” and credit limits, and 35% of your credit score is determined by payment history. That means that the way you pay your bills and your debts affect your score. For example, if you continually make late payments on your credit card bills, you’re hurting your credit score.
Did you know that Money Coaches are also Certified Credit Counselors? Many people have found that consultations with their Money Coach helped them take control of their debt and improve their credit, and you can too! Schedule an appointment with a Money Coach by calling 888-724-2326 today.
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1. Get your credit report. Why: Your credit report can inform you of suspicious activity that may mean identity theft. It can also have errors that are fixable, which will raise your credit score once corrected. How: Everyone is entitled to one free credit report every twelve months from each of the three major credit […]