Category Archives: Debt

Common Credit Card and Debt Mistakes

Common Credit Card and Debt Mistakes

Credit cards and loans can be wonderful tools, but they can hurt you if you don’t use them properly. The following are some of the most common mistakes that people make with loans and cards and some tips on how to avoid them:

Maxing Out Credit Cards

One of the top mistakes that people make in the credit world is maxing out the credit cards. It may seem great to have all that available credit, but using it all at once is highly detrimental to the credit score and can knock a person from “good” to “bad” within days. The best rule-of-thumb advice for that is never to spend more than 29 percent of the available balance. That way, you can show use and repayment but not irresponsible behavior.

Only Making Minimum Payments

Paying your credit card bill on time is a great idea, but you need to take it a step further. In other words, only paying the minimum payment won’t put a dent in your debt the way it’s supposed to. It will drag the payment on forever, and it will rack up more interest than you probably want to pay. You can do yourself a huge favor by doubling up every month. You’ll see your credit score rise faster, and you’ll get your debt cleared away.
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Factors that Contribute to Younger People Having Lower Credit Scores

Factors that Contribute to Younger People Having Lower Credit Scores

Unfortunately, there’s a negative trend occurring around financial health with each passing generation. A study done by Experian in 2016 found that Gen Xers (those born in the early 60’s to late 70’s) hovered around a fair 650 credit score rating. Millennial’s, or generation Y (80’s and 90’s), had an average score of 634 (poor). And… Continue Reading

Pros and Cons of Various Debt Relief and Reduction Methods

Pros and Cons of Various Debt Relief and Reduction Methods

Debt is inevitable in business as funding is required from time to time. Though it is common for companies to acquire some debts, problems arise when it becomes unmanageable. If handled responsibly, the debt may function as an impetus towards expansion and growth of the business by serving as a crucial economic engine. However, debt… Continue Reading