If you do not have credit cards or loans now,apply for a credit card with a limit over $2,500 and use it for one year buy as much as you can with it but only spend as much as the amount that you are able to pay off every month. If you have too many credit cards or the amount you owe on them is too high lower your debt by following these steps:
- Gather up the statements for all your credit cards and lok at the interest rates you are paying on each one.
- Pay more each month than you add in interest charges and new purchases.
- Pay more than the minimum whenever you have the money to do so.
- Whenever you have extra money, apply it to the loan with the highest interest rate
- Pay your bill hen you receive it
- Use the interest rate printed on your most recent statement when making any payment calculations
- Chart your progress. Each month update the current balance as you pay your bills.
- A little extra adds up
- Lower the interest rate
- - Move money around. One way is to transfer high-interest balances to cards with lower interest rates
- - Call current lenders and tell them that you are shopping for lower rates on your debts. Ask if they are willing to lower the interest on your current balance
Information by Barbara Grumme and Betty Talbot