2007-10-22 15:33:32 · 5 answers · asked by allesamay r 1 in Business & Finance ➔ Credit
Start by paying all your bills on time.
Use the snowball effect to pay off your credit cards. However, I suggest you concentrate on the highest interest rate first. You'll save more on interest that way. Paying your credit cards down to below 30% of you limit will make a big difference in your score. Paying them in full every month is every better.
Be sure to get a copy of your credit report and dispute any errors with the credit bureau.
If you have bad debt on your credit report, negotiate settlement one at a time starting with the newest and work backwards. Depending on how old the debt is, you can probably settle for half. Lump sum payments get better deals. Payment plans have to be short term. Get any settlement agreement in writing before you pay and don't give them access to your bank account. You can ask them to remove the negative -- some will, some won't.
To do all this, you have to make a strict budget. Eliminate all the extras -- cell phone, new clothes, eating out, etc. It also helps to find more income -- have a garage sale, collect alum cans, get a second job.
If you work at it, you can pay everything off in 2 or 3 years.
2007-10-22 16:19:49 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
If you have credit card debt pay more than the minimum due. Your debt goes away faster and the extra will help raise your credit score.
2007-10-22 22:58:22 · answer #2 · answered by Classy Granny 7 · 0⤊ 0⤋
it depends on what kind of debt you have...
If its CC debt--make sure you at least pay the minimum.
what i also do is once a week i make extra payments to each of my credit cards. When ever i dont spend as much on groceries or there is a little left over in the checking account I make extra payments on my CC. i paid two other credit cards off this way and it was much faster.
in general i guess would be to make a budget and stick to it. devote as much money to paying down your debt each month and stop using credit and spending money you dont have.
2007-10-22 23:11:19 · answer #3 · answered by nikkylyn 5 · 0⤊ 0⤋
You can only eliminate your debt by paying it. Do that and avoid late payments - then your score will increase.
2007-10-22 22:40:08 · answer #4 · answered by Anonymous · 1⤊ 0⤋
visit daveramsey.com to learn what they don't want u to ever learn or practice.
owning ur money
2007-10-22 22:57:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋