3 Tips for Repairing Credit (cont.)
Contributed by Rachel s Pickett
Make any non principal payments that you can. Paying off your debt quickly will help keep you interest rates down on loans and credit cards. If you cannot make a non principal payment, you should continue making your principal payments every month, and pay extra when you are able.
Credit Repair Tip #3
STEP #3- Create a Budget
Making up a budget that works with your lifestyle to reduce your debt is another way that you can repair your credit. When you decide to create a budget, take a look at every aspect of your money. You should know what your total monthly income is, what your total expenses are, and how much money you can put toward paying off your credit debt.
Make a budget that is flexible. You do not want a budget that is not easily changed or does not allow for emergencies. You want your budget to work with your lifestyle. It should be able to change and grow with you for a period of 2-5 years. Always allow for emergencies. If you do not leave room for emergencies in your budget, you risk making your debt worse. If you have to use credit to pay for hospital visits or car repairs, then you risk ringing up more credit than you can afford.
