subject: Avoiding Bad Credit By Paying Off Credit Card Debts [print this page] Credit Cards have been a boon to the consumer market. Why? It enables them to purchase a lot more than they could, however, keeping in mind the anticipated income. Now, when one uses credit cards, the payments need to be made. If the user defaults in these, then their credit rating would take a nose dive to give them bad credit scores. This is definitely not a healthy trend as bad credit cuts out many options of finance, especially when you desperately need them. So, which is the best way to avoid Bad credit? It's simple Paying off Credit Card debts in time. Now, here are some valuable tips in paying off card debts and how to efficiently do it.
To begin with stop or put a limit on using your card. Hide them away if the need arises. If you find that they won't be required, it is best in fact, to cut them up and throw them away. A mathematical technique might help you solve the problem of payments. First, have a look at the balance, half this. So, if it's a $1000 balance, then the first payment for this balance should be half of it. Keep doing this for 6-7 months. Then, you will be surprised to find how little you would owe the companies and that can be paid off and you will be debt free. This will enhance your credit score by leaps and bounds too. If your spending is going a little excess of what you earn, try making up for the excess spending by doing part-time or extra jobs. These can add the valuable extra to your kitty. Try collecting all your debts at one place or one lender. The best way is to deal with the same institution for all loan needs.
