It seems like things just keep getting more expensive. And right when you need to make a big purchase or get close to buying that thing you’ve been saving up for, life happens. And you can’t do what you planned. For these unforeseeable situations, it can be handy to have a credit card at the ready. They’re great for covering emergency costs if you don’t have the money in your bank account to cover it. The only tricky thing is these charges can quickly add up, and you’ll be left looking for credit problem solutions. When there’s no money leaving your account, you might rack up more debt than you know how to handle, which is why these few tips can come in handy.
What to Pay
If you have more than one credit card or account to pay off, then focus on eliminating the one with the highest interest payments. If you can pay it off in one fell swoop, great. If not, then make sure you’re making at least the minimum payments to avoid interest charges bumping up your bill even more. If all of the interest rates are the same, then focus on the account with the smallest balance. This will be the most manageable number to focus o, and when it’s paid off, you’ll get a little bump to your credit score.
How to Pay
The best way to start is to make a realistic budget. See what money has to go to bills and food each month, then see how much is left over and plan to put it toward your credit cards. It’s important to be realistic in this step because the first thing you should do when you get paid is pay on the bill. This way, you don’t have that money to use on other things, but you still have enough to live because you budgeted appropriately.
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