Bring delinquent accounts to current status asap. Pay off accounts that are public records (tax liens and judgments), charge-offs and collections asap. Negotiate settlements where possible
Keep larger receipts and monitor
If paying less than entire monthly credit card payment, always pay more than minimum eg: used 1 time for $500 debt @15% int, paying min pmt (2%), = 6-1/2 yrs, $800
If continually late on payments call creditors to change payment due date to a more convenient time to avoid late fees and penalties. Cut up and cancel unused credit and store cards
Avoid impulse spending…if discretionary sit on it for 30 days to make sure it’s needed. Keep well below credit limits …20% of available line. Cut up unused cards and voluntarily ask creditors to close accounts & provide letter
Be honest and admit there is a problem and develop a strategy. Only spend what you can buy w/cash or pay off in full each month (see budget) learn to live within your means (lifestyle adjustments)
Never take cash advances to pay off other credit card bills. Thoroughly read and understand all terms and conditions before accepting any new credit
Avoid excessive inquiries and opening new accounts…indicates possible desperation.
Buy only what you can afford to pay w/cash or pay full credit card bill (Stick to budget). Regularly review credit report (all 3 major-Experian, Equifax , TRW) and dispute any errors
Use store coupons wherever possible. Always shop using a list and shop alone…no impulse buying. Comparison shop all major purchases. Always live below your means to allow for financial/work downturns
