It is frustrating to see people falling in and out of debt. Despite knowing that something is not good for us, we still do it. Debt collectors start calling you at all times. It becomes hard for many people to maintain a proper credit rating even after fixing their credit score. This is possible to do though most of us perceive it to be so hard a thing to do. Below are some things that one can follow to maintain a healthy credit rating and remain debt free.
Monthly bills should be settled on time. One main reason why people go back to debts and have bad credit is when they do not make a timely payment on a debt and another and another. This strategy is not good if you want a good credit history. You should be current with your bill payments despite the fact that sometimes due to either a family issue or time off you may not settle on time. In case you find you running on low balances ensure that the coming month you go back on track. The main point here is to ensure you get back in good books on your credit card and remain there.
Make timely payments, this is one aspect that damages a credit score if bills are not being paid on time. Do not wait until bills fall due instead attempt to settle them with the first paycheck that you received. A healthy credit score can be destroyed by just one late payment. If your records are sent to collection agencies, they keep this record for seven years that is why whatever you do avoid any interaction with them, and this can be done by ensuring you make timely payments.
Seven years you will not be lucky when on loan repayments and will have to pay more than others. Avoid this by making timely payments. In case you are struggling to remain afloat, and you know you will not manage to settle a bill on time, it is advisable to contact the creditor instead of a having a debt collect coming to you. Having a bad credit rating is already enough that is why it is advisable to study the credit report carefully. Maintain a clean installment history and honor your promises.
Have installment updates of your bills by making timely payments. Do not overuse your credit card and learn to live within your means. In case you want to rebuild your credit rating you can apply for a secured credit card after you ensure that your credit rating is healthy.