You can easily get an auto title loan in Indiana and elsewhere if you have a car and income. But after your emergency is over, you really should get a handle on your finances, particularly your debt. It’s harder to enjoy your life when a chunk of every check goes to credit card bills or other obligations.
The good news is there are moves you can make to better manage your credit card debt, giving you more peace of mind. Take a look at these suggestions.
Missing a payment makes a big difference. In fact, your payment history comprises a whopping 35% of your credit rating. Submit a missed payment as soon as possible, as credit reporting agencies note when payments are 30, 60, or 90 days late.
If you can, it’s always a good idea to pay more than the minimum required on your credit card debt. In doing so, you’ll reduce your debt faster, saving on interest and potentially raising your credit score.
Monitoring your credit regularly is one of the best things you can do to get a handle on your debt. You can spot errors or even gain insights into how you can do better. Momentum also plays a role here: once you begin seeing the positive effects of your on-time payments, you’ll be more eager to keep making them.
When lenders consider applications for loans or new credit, they pay attention to how much debt you have, compared with your monthly income. They want to see if you can handle payments. So, try to keep your DTI ratio below 35%.
You can hurt your credit score by maxing out your credit card or coming close to your limit. Try to keep your balance below 30% of your credit limit.
You may be eligible for lower rates on your existing debts, particularly if your credit rating has increased or if interest rates have fallen since you first applied.
Possessing too many accounts with balances can decrease your credit score in the near term, and it may be hard to manage them. It’s best to take on new debt only when needed.
On the other hand, think before closing accounts. If you don’t, you could end up with less available credit. You could also damage your credit in the short term. Accounts that have a favorable payment history and a low or zero balance should nearly always be kept open.
Setting aside money for an emergency fund is key to debt management. You can dip into such funds for the inevitable unexpected expense such as a car repair or emergency travel. That way, you won’t have to pull out the plastic each time, keeping you in a cycle of debt. Put away $1,000 to start, then build up to six months’ of living expenses.
Making debt payments can be challenging. It can be particularly burdensome if your approach is scattershot, meaning you don’t really have a repayment plan or philosophy. Use the above strategies to help you manage your debt — and better enjoy your life.
