Paying Down Debt to Boost Your Credit Score
I bet you are reading this and wondering what paying down debt and saving money has to do with your credit. The answer to that question is: a lot. You can repair your own credit, get the negative, inaccurate, and obsolete items removed from your credit report and increase your score.
But what are you going to do when you are hit with the unexpected?
You have to come up with $2500 to cover your medical deductible for an emergency procedure. What if you are in an automobile accident and you have to come up with that $1000 insurance deductible to get your car repaired? What if your child broke his arm at soccer practice and he needs a knee brace which is not covered by your insurance because you have not met your yearly $2500 deductible. What if you experienced an unexpected job loss or a reduction work in hours?
These questions are all hypothetical but they happen every day unexpectedly. Unexpected emergencies and the number one reason why people are in so much debt and have poor credit scores. If you don’t have any money saved for emergencies then you are forced to rely on your credit. Making your emergency purchases on credit can lead to maxed out credit cards and collection accounts for medical bills.
Paying down debt and saving has to be included in your credit repair process.
If you review our credit center "credit tips," you will understand how paying down debt will impact the calculation of your scores.
If you prefer to allow a professional work on your credit, then schedule a free consultation with one of our credit counselors to see if our credit services is the right fit for you!