Once you manage to climb to the top of that debt mountain, it can be easy to slip back down. But with a few simple steps you can make sure you don’t slide back down that slippery slope.
Once you have created some good financial habits by making sure your credit rating is not dropping, bills are being paid regularly, you are below your credit limit, and you are saving well – then you will see that your credit rating gets better and better. Once you’re on top of things make sure you follow these tips so you don’t lose that wonderful rating.
Don’t take them up on the offers!
One of the great things about having a good credit rating is that banks just want to throw the offers at you! Very good credit card reward programs and low interest cards are offered to the better customers and it may prove very tempting to give in to their great offers.
Use these offers wisely and don’t give in to debt temptation! It might seem like a great offer and you feel like you need that new hot ticket item such as a fancy car or handbag, but do you really need it? Use the offers for things you do need and are looking to buy. Do your research and get the best deals on what you need to buy and find how to spend those low interest and high reward funds. You don’t want to find yourself in needing debt help all over again.
Do you research before you re-finance
Refinancing your mortgage can be a great solution to making your credit rating better. Mortgage rates can be very competitive and can help reduce your other rates. It is wise however, before committing to a big re-finance, to consult with a trustworthy financial adviser or debt consultant to find the best personal debt solution for you. It will be worth spending the money to save in the future as the mortgage lasts years and years.
If you are very savvy with independent research make sure you find plenty of information and a bit of patience to arm yourself with before you hit the banks. It is important to look at all the options available for you, and don’t forget to read the conditions for each plan otherwise you may get trapped into something you cannot get out of without hefty fees later.
Also be sure to set your scope wide as if you have not had the best credit rating or have applied for bankruptcy previously the creditors may ask questions and you want to keep your options open in case you cannot successfully negotiate a deal.
Don’t fall off the wagon
There will always be the temptation of falling back into the old habits that got you into debt in the first place. It is a matter of keeping your financial goals on track and keeping those good habits with personal finances in line in order to keep the credit rating up.
Make any credit related changes with careful consideration and take your time making them. You may get great credit card offers and have built up savings, but do you really want to dip into it? Consider saving extra emergency funds so you can throw away the notion that a credit card will be there to back you up ‘just in case’.
After working so hard for such a long time to fix your credit rating for your future financial goals, it would be a shame to throw it away on things which you may not necessarily need and can get by without. So ignore those toxic offers and keep at it! Your hard work will pay off – literally!
Source: MSN Money