Debt and credit are closely connected. How you handle your debts can harm your credit rating. While repairing your credit you need to be careful how you handle your debt.
Too much debt is bad but you knew that
A large part of your credit score is based on your credit card debt. Make sure you pay off regularly to stay clear of the limits and you will look like a trustworthy borrower.
Paying late is even worse.
While keeping your debt low the monthly payments are easy to keep under control.When these payments get too high you will have trouble keeping up. Once you miss a month or two you will hurt your credit score and it will be a lot harder to get back on track.
Debt Management
Will the help of a debt relief company help you get rid of your debt? Will they help restore you credit score?
The most certain way to protect your reputation is by making regular payments.
Debt settlement can make you life easier as well since the lender agrees you will pay back less than the total amount. This will lower your credit score as well.
Bankruptcy is really the last choice to get rid of unsecured debts. The damage to your credit score will be long lasting, like 10 years.
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