rein in your spending immediately, rather than waiting for your finances to spiral out of control.
If you run into trouble, contact your creditors immediately, Epstein says. “Tell them the truth,” she says. “Let them know what’s going on, and see if they’ll work with you.” If you face medical bills, contact the hospital. “There’s a possibility you could work out a payment plan so you don’t have to put it on your credit card,” Epstein says. The payment plan can stay out of your credit history.
And if your situation has deteriorated, contact a local branch of the nonprofit Consumer Credit Counseling Service. These debt counselors can negotiate on your behalf with creditors, and perhaps persuade your credit card issuer to reduce your interest rate to zero.
A credit score is just a number, but it’s a number that really matters. Protect it, and it will protect you. For more tips on business and finance, please visit our Healthy Living tab on BlackDoctor.org.
Sources:
Lita Epstein, author of “The Complete Idiot’s Guide to Improving Your Credit Score.” https://www.amazon.com/Complete-Idiots-Guide-Improving-Credit/dp/B00AZ8H2N0
AnnualCreditReport.com. https://www.annualcreditreport.com/index.action
FICO. http://www.myfico.com/