If you want to know how you can fix your credit card debt, then this article is for you. In this article, I am going to talk about the back and front of a credit card, and how it relates to your ability to pay on time every month. You see, if you want to fix your credit card debt, the first thing that you need to do is work on the back end. This means eliminating any late fees, excessive interest rates, and other unnecessary charges.
The back and front of a credit card are something that most people don't even realize. When you use your credit card, you have transferred your debt from your old bank account to your new credit card. This leaves you with one monthly payment, and that payment will be for the total amount of all of your credit card debt. Now, on the back end, here is where it gets interesting. If you only pay the minimum payment on time, then you are making money for the credit card company. You might not realize this, but by paying off your credit card debt as soon as you can, you are actually increasing your credit card limit, and that will give you more power when it comes to future purchases!
So what should you do to fix your credit card debt? First of all, start by getting your hands on a copy of your credit report from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion). Once you get your report, look for any errors or other questionable activity. If you find any, contact the credit card company immediately. They will usually have to investigate the matter in order to get it taken care of. However, in many cases, they may simply remove the erroneous information and then re-credit your account with an updated balance.
This process might seem troublesome because you will essentially be starting over again with a new credit card and trying to build your credit history from the ground up. It's understandable that you might feel angry and frustrated, but it is important to remember that you started your credit repair from the very beginning, while your credit was good. Therefore, the only thing that is going to stand in your way is the fact that you are trying to go back to the place that started it all. This might prove frustrating, but it is an excellent way to begin rebuilding your credit history, and you will ultimately feel much better once this process is completed.
The key thing is to keep track of your progress with this credit restoration process. Once you've moved from “bouncing” credit card payments back to “paying on time”, the next thing that you need to do is make sure that you continue to make your payments on time. Maintain a certain amount of credit that you are currently using. Ideally, you want to have about three to five times more credit than what you currently have. This will ensure that you can actually qualify for a lower interest rate, and that you will continue to pay the minimum required amount each month.
It might seem like it is taking too long to “get back and front of a credit card,” but the fact is, you need to take action in order to repair your credit. You do not have to wait for the credit company to take action, but you should never skip any payments, even if they show on your credit report as “settled.” The only way for these things to stay off of your credit report is for the company to drop them. So, if you don't contact the credit company or the company drops your account, you can still get your credit report and make it look like you did not make any late payments.