Small debt or a large debt, if you have any kind of debt there is no better time to get out of it than now. Why not clear your name and your credit rating so that you don’t have to be held back from owning your dream home or your dream car? It’s a timely task, and it will take some determination, but it can be done.
Before you even get to debt consolidation, which is going to be really important if you have a good deal of debt racked up, there are some other things you can do to start getting the path to better credit.
Look At Your Credit Report
Start off by taking a gander at your credit report. There are sites online where you can get a free glimpse at your report on a yearly basis. Just make sure you are looking at all three major credit reporting agencies, as they each tend to report on something a little differently (you may miss medical expenses or college expenses if you only look at one of them).
Your credit report won’t always give you a glimpse at your credit score. You may want to find someplace to go through for this as well, as it can tell you a lot about your credit status. Some credit cards keep this number updated for you (as it can fluctuate often).
Quit Frivolous Spending
Before you try to fix your credit you need to stop the bad habits that got you into this mess in the first place. Learn the difference between wants and needs, and stop spending so much money on wants. No one needs fifty pairs of jeans or twenty pairs of leggings.
It can be hard not to impulse buy. However, when you shop start looking at items differently. If you can’t see their purpose immediately (aside from the ability to sit on a shelf) pass on them.
Cut Back On Bills
It will also help to cut back on bills, which will leave you more money to put toward your debts. Cancel cable and pick between the streaming options that are out there. Start unplugging electronics when they are not in use, and turn lights off when you aren’t in the room. Even regulating your heater in the winter and your air conditioner in the summer can make a big difference.
Find Some Extra Money
You make even start making some extra money to pay off your debts with. There is a good deal of options, from trying your hand at crowdfunding to having a yard sale to get rid of your clutter that got you into debt in the first place! Use the funds you get to start paying down your debts and you may find that it opens up all sorts of new avenues for you.