Posts Tagged ‘pay off debt’

A Way Out of Bad Credit

September 25th, 2009 by Adam | No Comments | Filed in Credit Score, Credit Score Advice, Credit Score Tips

Why Do You Want To Check Your Free Credit Scores?

Check the Situation That Best Applies to You And Then Click the Button Below to See Your 3 Credit Scores Absolutely Free

I want my 3 free credit scores from Experian, Equifax, Transunion that the government does not provide free

I want to apply for a credit card and get a low APR

I am preparing for a major purchase (home, auto, boat) and want to make sure I get the best loan rate I qualify for

Just curious where my credit stands against the average American credit scores

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(Click the button above to see your 3 free credit scores)

If you carry significant amounts of debt, you will find it harder and harder to purchase things, particularly large items, and be able to prove your credit worthiness. In fact, if you have bad credit many stores or credit card companies will deny you for their cards because you have less than desirable credit ratings! In fact, in today’s world bad credit is just not allowed!

If you are under the pump, there are a number of things that you can do to improve your credit standing! What you really should do is onbtain a copy of your credit report so you can see what exactly is causing you to have a bad credit rating. Once you see what is on your credit report, you will then be able to start making payments to the companies (they don’t have to big large amounts as anything you send will show that you are making an effort). Even by paying $10 a month it will show that you are paying rather than not paying and making an effort to pay the debt off (which is worse on a credit report). Hopefully you are not that much in debt. With just a few smaller problems it is better to pay the entire bills off and reduce your overall stress!

If you are in a position where you cannot pay off the accumulated debt, then you should consider a single loan to consolidate all the smaller loans into one payment. In some cases, a financial institution will be willing to give you the loan because you are showing that you are willing to pay off all your bad credit. Another option you have to get rid of the bad debt is by going through a debt consolidation program, where the companies are able to help you reduce your payments as well as eliminate any interest rates so that you can pay the debt off faster. Debt consolidation programs can be very helpful as you are paying off all your debt at the same time and your credit report will show that they are being paid off, or have been paid off. With many people, the only way that they are able to go through a debt consolidation program is if they have a certain amount in debt (usually no less than $5,000).

Whether you are trying to manage a small amount of debt or a lot of debt, it does not matter what the amount it; it is still considered to be a bad debt which could eventually be bad credit! The best way to avoid problems with your credit score is to have a plan to pay all your bills on time!

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Pay Off Those Small Debts And Increase Your Credit Score

October 28th, 2008 by Adam | No Comments | Filed in Credit Score, Credit Score Advice, Credit Score Tips, Get out of debt, Pay Your Bills, Personal Finance

Want to know how to increase your credit score?  Pay your bills on time and pay off your debts.  Sounds simple enough right?  Here’s a little more help…

Is too much debt overwhelming you?  If so, here are some suggestions to help you pay off those small debts.

Experts advise it would be better to pay off credit cards with high interest rates first.  However, perhaps in your case, paying off those small debts will give you the incentive to put together a monthly budget and eventually pay off all you owe.

Make a list of the smaller debts you have and try to increase what you repay; that is, take what you can afford to put aside after all the household bills have been paid, and add it to the minimum amount due.  The satisfaction of paying off a small debt will motivate you to move on to the larger debts you may have incurred.

After you have paid off the first bill on your list, start paying off the second debt utilizing the same method.  For example, if you paid $50.00 minimum and added an additional $25.00 for the first debt; pay $75.00 a month for the second debt.  This method is referred to as Debt Snowball and is mainly used to pay off high interest rate credit cards.

However, it also can be used in reverse and has been effective for those who have been steadfast in their desire to pay down all their debts, starting from the smallest to the largest debt.

One of the best ways to determine how much you can put aside from each paycheck is to establish a budget by listing the essentials first, including rent, mortgage, food, utilities, and pension contributions.  How much you have left will determine the amount you can safely put towards the debts.

If the amount is small, don’t worry about it.  The idea is to pay more than the minimum every month.  For example, if you had a debt of $4000 at 18% interest, it would take approximately 291 months to pay it off with a minimum of $100.00 paid each month.  Conversely, if you added $25.00 to that amount, the debt can be paid off in 44 months.  Moreover, while the interest on the former would come to $5,615.32, the latter would only increase to $1,490.22 in interest paid.

You can see from the first example given that on a $4000 debt, the interest can be more than the principal amount owed.

The way to get out from under any kind of debt, large or small, is to make some sacrifices.  Try to reduce the number of times you dine out, take lunch to work, utilize grocery coupons and buy in bulk, purchase store brands instead of name brand items, and buy clothing at consignment shops or thrift shops.  If you work outside the home, try carpooling or take public transportation.

The bottom line is that debt can drag you down and stress you out.  Cut up all credits cards except one, which should only be used in extreme emergencies.  Pay with cash.  If you can’t afford it, you can’t buy it.

The saying cash is king applies here.  Do your best to pay cash for everything including rental cars and travel.  This way you can avoid going deeper into debt.

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