When you find yourself in debt, it can be tempting to take advantage of offers and services that seem like the answer to all of your problems. It can also be tempting to simply avoid dealing with anything because you are feeling overwhelmed. Neither of these approaches are beneficial for you in the long run, and that is why 360 Credit Consulting wants to help provide the information and counseling you need to get out of debt and repair your credit score. Today, we’ll provide some advice on the types of things you want to be sure to avoid when you are trying to get out of debt. If you are tired of trying to figure things out on your own, then call our office in Austin and let us help you get the credit score you deserve.
1. Procrastinate Paying Down Debt
For those drowning in debt, it’s common to have the mindset that spending a little more won’t hurt — after all, you’ve already fallen this far. Spending money on a night out to diner, or a favorite coffee drink will make you feel better temporarily, but it does nothing to address the mountain of debt you are still facing. Instead of giving in to this temptation, set aside a couple of hours without distractions where you can sit down and work on a budget that includes your plan for paying down debt. The more you procrastinate, the more you sabotage your future financial security and your credit score.
2. Forget to Lower Interest Rates
While you can’t make interest rates go away, they are not completely out of your control. Many people forget that they can, and should, contact their credit card companies and negotiate a lower interest rate. Depending on a number of factors, you might be surprised at how much they can lower the rate, which will benefit you in the long run as you will end up having to pay much less than before you called. In fact, the faster you can pay down your debt, the more you help your credit score to move in the right direction. Once you have lowered your interest rates, use either the snowball or avalanche method to pay down your debt completely.
3. Credit Card Pitfalls
Debt is surprisingly easy to fall into because of the allure of credit. When you need or want something, credit will give it to you right away and delay the burden of responsibility. Of course, this responsibility will catch up to you, and if you can’t pay the debt in full, then interest will begin to accrue and send you further into debt. You want to avoid the temptation to continue making credit card charges. If you are spending more than you are paying toward your existing debt, then you are simply growing your debt and ruining your credit score.
The other common credit card pitfall is to open up new credit card accounts. Unless the new card is offering a zero-percent balance transfer, you want to avoid opening a new account at all costs. Without a zero-percent transfer, you are simply adding a new minimum payment to your overall debt and increasing the entire amount of your debt. If you are already struggling to pay off the credit card balances you currently have, then adding another one will simply add to that struggle, further damage your credit score, and increase your stress levels.
360 Credit Consulting wants to help you reduce your stress, lower your debt, and improve your credit score. If you have been fighting debt and feel that there is no way out for you, then please call our office in Austin and let us create a plan to help you move towards a more stable financial future. Contact us today and let us help you get the credit score you deserve.