subject: Expert Tips On How To Get Rid Of Debt And Raise Your Credit Score [print this page] It seems as though everywhere you turn, there's another feature on the television or radio about the global credit crunch - but you don't have to watch or listen to feel the squeeze on your own budget. If you're like any of the millions of consumers out there, you and your family are probably struggling to pay your bills in order to protect your valuable credit score, with what seems to be no relief in the near future. Even if you're not having trouble paying the bills, it's important to use this opportunity to give your credit score a check-up to ensure that it's healthy and free from reporting errors. If you're ready to improve and protect your credit score, then listen up - these are the expert debt-busting and credit-protecting tips that you need to follow in order to keep yourself from remaining with bad credit ' and a whole lot of debt ' for the rest of your life!
Pay All Bills On Time. It may seem simple, but for many individuals, paying bills on time is a lot harder to put into action. However, this is the ultimate rule towards tackling debt and improving your credit score during these uncertain economic times, since a large percentage of your credit score is determined through your payment history (35%, to be exact). If you have a tendency to forget the due dates of your bills - and let's face it, who hasn't done this every once in awhile? - try enrolling in automatic bill pay, where the money is directly taken from your bank account on your credit card's due date. It's really that simple to get a handle on all of those due dates!
Don't Close Old Accounts. Not only is it wise to have a back-up credit line in case of an emergency, but it can actually improve your credit score as well, as a large portion of your credit score is made up of your available credit to debt ratio (30%). Keeping an open line of credit makes any debt that you do have look minimal, which will help to boost your credit score and cut down on interest payments on your outstanding debt.
Work Out A Budget. If you feel as though you have no clue where your money goes at the end of the month, then you need to sit down and work out a household budget. If you aren't sure how to do this, check out some of our earlier articles on making a budget, or hire a personal finance professional who can show you what to do. Remember, the goal of the budget is to cut down on luxuries and free up extra money to throw at your credit card debt, so be sure not to gloss over your expensive latte habit. You'll be on track towards a debt-free lifestyle ' and a drastically improved credit score - in no time at all!
