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Managing Your Credit Score And Credit Card Debt For Financial Success

By Sally Maison
Published: Monday, April 14th, 2014

According to recent online polls, it was unveiled that people are more likely to be self-conscious about their credit card debts and scores, than they are about their weight and age. These polls were conducted by the national foundation for credit counseling. The outcome of these polls revealed that 37percent of people were concerned about their credit card debt, while 30 percent were worried about their credit score and 2percent and one percent were concerned about their age and weight respectively.

Quite often than not, severe credit card debts are usually an adverse indication of impending bankruptcy. It is a known fact that credit card debts can have a bad effect on an individual’s credit report, in turn leading to a low credit score. However, all hope is not lost for those who experience such a predicament with their finances. There are indeed practical ways to ensure that one does not find himself in this horrendous situation.

It was confirmed by a consumer advocate Elisabeth Leamy, that the first step to take in order to avoid bankruptcy is to reduce the credit card debt. This can be achieved by getting a lower interest rate on the credit card by requesting for it. This would give a chance to pay off the debts faster and with less expense. It is also advisable for an individual to utilize his own savings as a means to clear the debt. To free oneself from the credit debt faster, it would also be wise to give first priority to the most expensive debts, by paying them off earlier than the less expensive debts.

Other than paying off debts to avoid bankruptcy, Leamy also advocates that the next convenient necessary step to take would be, to make efforts to increase the credit score. The most effective way to raise the credit score is to develop a habit of not just paying credit debts but also paying them on time. Leamy also discourages the use of credit cards that have been used to the limit. This can be avoided by moving some debts to other credit cards, so as to prevent them from reaching the limit. Another way to be at par with your credit scores and credit report, is to request the bank to delete the one time blunders you have made, such as not making payments on time, creditors would be willing to oblige if one is responsible.

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