subject: Paying More than Your Minimum Payments Every Month [print this page] Paying More than Your Minimum Payments Every Month
Credit cards for bad credit and credit cards to rebuild credit can be used as great tools for improving your credit history and your credit score. If you have had credit problems in the past, then the simple but undeniable fact is that you need to rebuild your credit score. There are many ways you can endeavor to do just that, but using credit cards to rebuild credit certainly ranks near the top of your options.
While it is important to use credit cards to improve your credit score and show that you are a good or improving credit risk, it is also rather important that you do not carry or incur too much debt. Remember that every month you are being charged interest on outstanding balances. This is completely fine in that it is part of the process of rebuilding your credit history. However, too much debt can lead you right back to financial problems once again!
If you find that you are carrying a very high credit card balance that is interfering with your ability to pay other bills, or you are in danger of being late on your credit card payments, then it's time to take action. Those looking to improve their credit history will want to immediately begin thinking of ways that they can reduce their credit card debt, and that means making more than the minimum payment.
Finding the extra money to make more than your minimum payment may not be easy. However, this is a necessary goal if you are to avoid credit card problems and thus financial problems. The first step is to look carefully at all of your spending. It is likely much of your spending is set in stone, but you may have some expenses that are more flexible. Target those expenses and begin culling them back until you have extra money at your disposal every month. Once this is the case, simply pay as much as possible on your credit card bills, focusing first on those with the highest interest rates. Eventually you will be able to reduce your credit card payments and the amount of interest that you are incurring every month as well. It might take some time to find ways of saving money, but in the end, it will yield rewards.
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