See How Your Credit Card Debt is Hurting Your Credit
If you are like most people you have several credit cards and you make your monthly payments, yet you carry a pretty high balance on the cards. So, what does this mean to your credit rating? Basically carrying a lot of credit card debt will negatively impact your credit score. Unfortunately most people do not realize this and they think that they make their payments on time so they have good credit. Well, when these individuals go to the bank to apply for a home loan or even a car loan sometimes they are shocked at the credit score they receive! This is simply the result of carrying a lot of credit card debt and it can easily be remedied by paying it off.
Pay it Off Fast Paying off your credit cards might seem impossible, however with a little budgeting anything is possible. What you need to do is evaluate how much disposable income you have on a monthly basis. This is the money leftover after all of your bills are paid for. Once you have a number here you will be able to decide how much extra you can pay each month to get those credit card balances down.
Now, let’s keep in mind that the longer it takes to pay them off the more interest you will pay so it is really worthwhile to buckle down and pay them off fast even if it pinches a little than to simply pay the interest over the years and throw the money away. You don’t want this to happen to you, so make a plan, and work that plan. When you have a budget you will know exactly how much money is allotted for food, extras, and the like and will be able to stay within the budget. The problem arises when you don’t have a budget and simply spend at will. This is where you get into trouble and run up credit card debt.
Take a Look at Your Credit Score If you still don’t believe that credit card debt hurts your credit score then perhaps you should take a look at your score. There are three different credit bureaus that can provide you with your credit report and credit score. You may be required to pay a small fee, but you will see all the info on your report as well as your score. Then you will have a better idea how your score is affected. In addition, many of the sites allow you to see what would happen to your score if you lowered your debt, increased it, filed for bankruptcy, and the like. It really is a good option just to see where you stand.