- Make a list
Take all of your bills and put them into a chart. On the chart make sure it shows the name of the bill, the interest rate, balance and what is your minimum monthly payment.
Now figure out how long it will take you to pay the balance down to zero (many credit card statements now have this feature).
- Lower your rates
You can actually call up each of your credit card companies, starting with the highest rate ones and ask them to lower your rate. Tell them that other credit card companies are offering lower rates but you would like them to keep your business. They don’t normally give you an answer on the phone but you should receive a letter in the mail within a couple of weeks with a lower rate!
- Figure out your number
What is the exact number you need to pay off all your debts? Can you pay this off in 6 months? 12 months? 2 years? Set yourself a goal!
- Create a game plan
Ideally you don’t want any accounts with balances over 75% of the limit of the card. Example; If you have an account with a $1000 limit and the balance is $900, pay the balance down to $750 as this will now create a positive rating on your credit score. Do this with all accounts first, then tackle the remaining balances.
- Monitor your progress
How is it going? Are your debts coming down? Don’t feel discouraged if this isn’t a quick fix… stick to your plan and if you practice self-discipline you can achieve your goals and be debt free!!
We have an excellent Credit Repair Plan that is not just for those with damaged credit, it’s a plan that applies to everyone when it comes to debt repayment and maintaining a strong credit score. Contact us at 604-552-6190 if you would like to receive a credit plan!