Knowing how to properly manage and decrease your debt is the foundation to building good credit. Debt represents 30% of your credit report and of course, it’s very easy to get into debt – but hard to get out of it!
According to statistics reported by CreditCards.com, US households have more than $953 Billion in revolving debt! So, it’s important during the Holiday Season to minimize the use of your credit cards.
Here Are 3 Debt Traps to Avoid During the Holidays:
1). Be Aware that Your Debt Represents 30% of Your Credit Score!
When you go over 30% of your available limit you’re decreasing a large chunk of your score.
2). Avoid Signing Up for Store Cards!
Watch out for retailers who say get 10% off of anything you charge during the Holiday Season! The credit card you sign up for might be at an interest rate of 19% to 29%.
So, you’re actually paying more than you think and you’re actually giving the store back more money than they gave you in the 10% off. Of course, most retailers don’t tell you what their card interest rate is at the time you sign up.
3). Avoid Cashing or Depositing Holiday Checks from Lenders!
If you receive a check for any amount along with a nicely written letter on beautiful Holiday stationery, BEWARE! These are lenders that are trying to capitalize on individuals that are desperate for money during the Holidays. While this type of loan might bring temporary relief and help to buy gifts and other needed items, it comes with a heavy interest rate. Consumers have reported as much as 39% being charged in interest.
Monitor Your Spending Habits & Plan to Get out of Debt!
Most people are spending more than they make, because they are not monitoring their spending habits. I want to help you be proactive, but you might be reading this and are already deep in debt.
So, I want to share with you information about an incredible service called Debt Zero. It’s part of the Financial Education Service Protection Plan that many of my clients and members are using to increase and/or restore their credit score.
The Debt Zero System shows you how to allocate your money using only your current income to pay off your debt more efficiently and faster!
To learn more, click here and check out how you can get out of debt!
Becoming more knowledgeable about how to get out of debt and keeping it to a minimum will help you to not only have a better credit score, but free up more of your cash!
