Control Credit - Debt
Fixing "Bad" Credit
If you do not have a good credit standing, there is no need to despair. There are ways to correct the poor ratings, at least over time. To get a handle on your credit use and improve your credit standing, you should:
- Stop using your cards while you are paying them down. Put them away in a safe place.
- Freeze your cards in a cup of water. As you wait for them to thaw out, you can decide if your purchase is really necessary.
- Don't use your credit cards like a debit card. Stop using it to make small everyday purchases, such as your cup of coffee, afternoon snack, or lunch.
- Pay your bills on time.
- Set up an appointment with a Financial Fitness advisor to get assistance in developing a plan to pay down your debt.
- Call your lenders and negotiate lower payments if you can't afford your present ones.
- Make sure to also pay off any collection accounts in your name.
- Before closing any accounts, set up an appointment with a Financial Fitness advisor to discuss how this will affect your credit score.
- If you have multiple credit cards, use the roll-down method.
Take the Quiz-
48% of credit card owners only pay their minimum monthly payment each month.
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The average household with debt carries approximately $10,000 to $12,000 in total revolving debt and has 9 credit cards.
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Credit card companies usually offer credit limits to college students between $500 and $3000, with higher interest rates than non-students, between 18% and 20%.
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The US has recently seen an over 50% increase in bankruptcies among people under age 25 (fastest growing age range for bankruptcies).
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Total consumer debt topped $2 trillion for the first time in 2003.
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66% of Americans don't pay off their entire credit card bill each month.
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Persons entering college are offered an average of 8 credit cards the first week of school.
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55% of college students acquire their first credit card during their first year of college, and 83% of college students have at least one credit card.
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45% of college students are in credit card debt, the average credit card debt being $3,066.
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Undergraduates students carry an average of three credit cards.
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Graduating students have an average of $20,402 in combined education loan and credit card balances.
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20% of graduating college students have $10,000 or more in non-school related credit card debt.
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University administrators state that they lose more students to credit card debt than to academic failure.
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Students double their average credit card debt-and triple the number of credit cards in their wallets-from the time they arrive on campus until graduation.