| Today's good credit score will follow you through your | | | | can tighten their belts and get through a couple months |
| earning career and also into retirement. With virtually all | | | | for that kind of benefit. Now that one debt is gone, |
| companies reporting your paying history, it is imperative | | | | with a nice "paid" on your credit report, you can loosen |
| that you keep within a reasonable budget and make | | | | the bet again. Don't get rid of your cards - only the |
| your payments on time. | | | | long-term debt. |
| Are you aware that even your utilities report your | | | | At this point you could consider a debit card. This card |
| payment history? Make a list of every debt, minimum | | | | will enable you to make purchases with the ease of a |
| payment required, and the payment date is a first step | | | | credit card and the payment will be withdrawn from |
| to creating a budget. Creating a spreadsheet for your | | | | your checking account balance. The important point of |
| budget is a wonderful help in this. (We all know that | | | | the above exercise is that you will be reported to |
| making the minimum payment on a credit card is | | | | credit agencies as being consistently on time with your |
| passing that debt on to your grandchildren - a minimum | | | | payments. Even one report from one creditor of "over |
| payment will only lengthen the life of the debt.) You | | | | 30 days" can deduct valuable points from your credit |
| now know how much you need to spend on your | | | | score. |
| debts and how much is left over. Your budget will | | | | Credit reviewers will also look at your income versus |
| show you the bare minimum you need for your debts, | | | | your debt ratio. To have a good credit score means |
| look at your credit cards to find the one that is closest | | | | you keep your spending under seventy percent of |
| to being paid. | | | | your income. Look at your budget again to see where |
| This is the one you will focus your efforts upon. Use | | | | a belt-tightening measure will help you the most. |
| your spreadsheet to see how many months with an | | | | Remember hearing: you only get a loan if you look like |
| increased payment it will take to rid yourself of this | | | | you don't need the money. It's true! These points will |
| debt. Repeat until you can completely rid yourself of | | | | help you plan how to improve your credit score. |
| heavy credit card debt. As long as you use your cards | | | | You don't need to enroll with a company who will tell |
| and pay them off in a month or two, they are an | | | | you your monthly credit score - your monthly credit |
| asset. | | | | score comes in the mail from your creditors - for free |
| Long-term debt on a credit card is a disaster in the | | | | - they tell you you made your payment on time! Keep |
| making. By using some of your left over money for a | | | | your money for other things - like an IRA! |
| few months, you rid yourself of a this debt. Anyone | | | | |