Between saving a few dollars on your monthly grocery bill by combining coupons and sales, and scouring secondhand shops for your wardrobe update, you can save a few bucks here and there. However, many people find it easier just to let their credit card company take the toll. Did you know that even if you find yourself deep in debt with credit cards, debt repair is an option available to you?
Do You Have Credit Card Debt? Learn 4 Ways How to Build Credit and Save Money
In today’s article, we’ll outline some of the ways to save money and improve your credit score.
Make Your Credit Cards Work for You
In many cases, paying for every purchase on credit is not in your best interest if you’re seeking debt repair. Doing so adds interest, and making the monthly payments takes a big chunk of change that you could be spending elsewhere. Even the best credit repair service can’t get that money back for you once you’ve spent it! However, if you absolutely cannot avoid making purchases with plastic here and there, it’s important to know how to do it the right way.
Don’t Drown Yourself in Debt
It’s an age-old adage: just because you can doesn’t mean you should. When an exciting concert comes to town, or you get invited to a night out with friends, it can be tempting to let your lender foot the bill.
However, even individuals who don’t need debt repair should only use credit when necessary. The best credit repair service will tell you: keeping your overall debt to credit ratio below 30% makes a positive impact on your credit score. To do so, though, you need to spend less than a third of your available credit, so use it wisely!
Reap the Rewards
Choosing the card with the lowest interest rate is one way to save money, and rewards are another. Certain lenders offer cashback on almost every purchase, which you can in turn use to pay your bill for free. While they may often go ignored, it’s important to take advantage of these rewards. Some lenders will choose a certain type of commodity, like travel or groceries, which they offer the most rewards for. These deals can save your hard-earned cash which you can put towards your monthly bill, so seek them out.
Be Proactive About Paying Your Bills
Don’t wait around until the day your bills are due to pay them. If something goes wrong at the last second, you could end up facing late charges and a negative impact on your credit score. (After all, 35% of your score is calculated based on payment history.) Consider taking advantage of an autopay option at your bank. Autopay is a quick and easy way to make sure bills get paid on time, every time. Setting the automatic payment to be more than the minimum payment can also save you money by reducing the amount of interest you pay in the long run.
While you’re online, find out if any discounts are available for going paperless. Not only will you save a few dollars, but you can rest assured that none of your bills have a chance of being lost in the mail or arrive late due to a holiday.
Choose the Best Credit Repair Service
When your drowning in debt despite trying your hardest at debt repair, it’s beneficial to seek guidance from outside help. When you do, make sure you choose the best credit repair service. Don’t opt for a company that makes outlandish promises, encourages you to create a new credit identity, or charges astronomical fees. Do your research, and you may just find that debt repair can be achieved quicker than you ever imagined. Looking for credit repair reviews? The pros at Your Personal Finance Tips have your back.