Here are a few ways to manage your credit and stay out of debt.
1. Minimize Your Use of Credit
Easier said than done right? I know it may take a while to build up a cash reserve for emergency situations but you will want to do so and start using cash for everything you purchase. It becomes easy once you are living on cash instead of what you may have in the future.
If you don’t have the money and it isn’t a necessity, then you just don’t need it!
2. Shop For Credit
Now that you’re credit situation has improved you probably have options when it comes to securing credit for things like a house. My husband will take an entire week calling around looking for the very best deal. So take your time. Credit cards make money off of you and want your business.
3. Stay on Top of Your Credit Score
Check your credit score with Equifax, Experian and TransUnion every six months or so to make sure there aren’t any mistakes on your credit history. That can hurt you. You can check it for FREE too, it’s your right.
4. Be Wary of Great Credit Offers
I’m sure you’ve heard the phrase ‘if it sounds too good to be true, it probably is.’ This can definitely apply to credit offers. The fine print may show that it’s really a bad deal or it may even be a flat out scam. Another reason my husband takes an entire week to find us the best deal.
5. Be Proactive With Financial Setbacks
Unfortunately sometimes crap happens. Someone gets sick, your husband loses his job or you do too. You need to make contact with your creditors.
They really don’t want you to default on your loans and most will be happy to work with you when you’re struggling in order to avoid a default.
I really think the very best way to manage your debt is to have as little as possible. Pay off what you can and don’t accumulate more.