Business Payments

How To Make Credit Payments

Introduction

Credit hooks the debtor to the creditor in so many ways. The only way that the debtor can be able to free themselves from this yoke that hangs around their neck is by learning how to make credit payments.

Step 1

The first thing to do when deep in a credit hole is to stop getting yourself even deeper into the hole. The only way to do this is to stop getting into even more into debt before you are through with making your current credit payments.

Step 2

You need to make a budget to include your income, your expenses as well as your credit payments. You should prioritize your budget so that you only purchase what you must have while you deal with your credit payments so that you can be able to improve your credit score and ultimately get rid of all your credit.

Step 3

When you receive your paycheck, you must first make your credit payments before you do other things, because if you do not do this first, you may end up not doing it at all. So make sure that your credit payments are reduced by a certain amount every month and in no time at all, all your credit will be finished.

Step 4

It is important to always evaluate the bigger picture when making credit payments by first evaluating which debts are of priority and clearing those first. Sometimes it may be necessary to take money from your savings account to make credit payments, but before you do this, you must analyze the situation and make sure that this is the only way that you will be able to get rid of your credit.

Step 5

The credit payments that the person should consider getting rid of first are those that have a very high interest rate as this are the ones that can end up increasing an people debt. It is advisable not to make minimum credit payments as these usually end up paying for the interest only and leaving the credit that you owe untouched.

Tips

It is also advisable not to make credit payments with more credit as this will not help to lessen your burden. Chances are you will still be in debt for a long time, but if you use income to pay for credit, then you will be able to get rid of any debts that you may have accumulated over the years.

When people make credit payments, they usually free up some of their funds and these money can then be redirected to other uses. This means that planning on how to pay off all your credit is advantageous because it gets easier with time. As you get rid of one credit after another, you will realize that you have more money to spend and you will so be able to manage your finances.

Making credit payments requires a lot of discipline, but the person must realize that the pain of discipline is less than the pain of bankruptcy and regret, and they should therefore be determined to clear off all their credit before the yoke of debt on their neck becomes so heavy that it ends up hanging them.

By Stanculescu Mihai Bogdan, published at 03/16/2012
   Rating: 4/5 (11 votes)
How To Make Credit Payments. 4 of 5 based on 11 votes.

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