As credit card debt continues to soar, the average credit score has begun to drop. Once a common source of pride among many Americans, a credit score says a lot about your financial situation. Too much debt or delinquent accounts lowers your score flagging you as a potential credit risk. It seems as though many people either no longer care about their credit score or do not have the tools needed to resolve their credit troubles. In either case, there are a few ways to take better care of your credit when in debt.
Many people dread hearing from or contacting their creditors. While it may not be fun, and sometimes scary, the worst thing you can do when you are having trouble with your account is to ignore your creditor. Protecting your credit can be as easy as picking up the phone and discussing your financial hardship with your creditor. In many cases, a creditor may be willing to negotiate payment terms to better suit your budget. Don’t make the mistake of letting your account sit delinquent and collection attempts be passed onto a third party, resolve your account troubles directly with your creditor.
Maintain A Schedule
Maintaining a consistent level of payment each month is the best way to keep your credit in good standing. Even if you aren’t able to make a substantial payment, find out what amount is acceptable to the creditor and make that payment in a timely manner each month. If you are experiencing financial troubles that is preventing you from making a payment and credit negotiations are not beneficial, you may consider seeking repayment through Chapter 13 bankruptcy. You may be able to reduce or eliminate the interest on your accounts and will be able to arrange a payment schedule over a three to five year period. Again, making timely and consistent payments is very important when working to get out of debt.