Credit Score Archives - Page 4 of 9

Do Not Believe the Lies Debt Collectors Tell You

Posted on February 8, 2019by Admin

Debt collectors will tell you just about anything to get you to pay on a debt. They are persistent, to the point of being rude or even harassing at times. One thing that many debt collectors, especially the less-than-reputable collectors bank on is the fact that you will not know when your rights are being violated or when you are being lied to.

How do you know whether you are being fed a line or whether you are being told the truth by a debt collector? Here are some of the most common lies debt collectors will tell you.

Threatening to take you to court – even jail.

Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors cannot threaten to take you to court on a debt if they have no intention of actually doing this. Many also will threaten to garnish your wages if you do not pay. Wage garnishment does not occur that easily. It only happens after a debt collector files a formal legal claim against you, a hearing is held where you have the right to present your side of the story, and a judgment is issued. Only then can a debt collector file a wage garnishment, which still has to be granted by the judge before your wages can actually be garnished. Many collectors, however, will make these statements in hopes that they will scare you enough into paying them.

The debt collector does not have to prove you owe the debt.

This lie is another one that goes directly against the FDCPA. If you are contacted by a debt collector who claims you owe money on a debt, you have the right to request written proof or validation of the debt. You then have 30 days normally to dispute the debt, if you do not believe you owe it. In fact, under the FDCPA, consumers have the right to send the debt collector a formal letter known as a “debt validation letter,” requesting more information on the debt to see what amount is owed.

This validation includes a complete payment history, a copy of the original loan agreement or credit application and proof that a third-party debt collector has the right to contact you on the debt, if someone other than the original creditor has contacted you. Many collectors will say they do not have to legally provide you this proof, but that statement is completely untrue.

Additionally, according to the Federal Trade Commission (FTC), if a creditor cannot validate a debt, the creditor cannot collect on the debt, is not permitted to contact you on the debt, and is not allowed to report your debt to creditor bureaus. Violating this provision is a violation of the Fair Credit Reporting Act and can result in a $1,000 fine.

Paying off the debt immediately will improve your credit score.

Mentioning your credit score is often a quick way to get you to act, and debt collectors know this fact. Many collectors will claim that you can immediately improve your credit score if you pay them immediately. The problem is, once your debt is in collections or is considered 90 days past due, this blemish will stay on your credit reporting even if you make an immediate payment to the debt collector. They cannot promise that your credit score will improve with that payment because it simply is not possible. It is possible, however, to get a written agreement from the creditor or collector that they will remove all negative information from them on your credit report, but most consumers are not aware of this possibility, so it is rarely utilized.

Threaten to expose your debt to others.

Debt collectors may also threaten to expose you and the fact you owe this debt to others you know, including family members, friends, even your employer. However, under the FDCPA, debt collectors are prohibited from revealing any information about the debt to anyone other than the debtor. This protection is meant to keep the debtor free from intimidation or harassment from debt collectors and to keep this information private, as it is personal information only to the debtor. If the collector makes this threat, report the company immediately to the FTC as they are violating federal law.

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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Top Ways to Avoid a Financial Crisis, according to a Bankruptcy Judge

Posted on February 7, 2019by Admin

No one wants to think about what he or she would do if faced with a major financial crisis. However, what if the unthinkable happens, and you find yourself facing a financial situation you never thought you would encounter? Some bankruptcies are precipitated by events that are beyond a person’s control – for example, a major health crisis, a job loss or divorce. But a number of causes are entirely within a person’s power to stop. After 12 years serving as a bankruptcy judge, the Hon. Margaret Cangilos-Ruiz, the chief judge for New York’s Northern District Bankruptcy Court says she has seen it all. In a recent interview with MarketWatch, she shared her insight on how people can avoid bankruptcy and setting foot in her courtroom.

Monitor Your Credit Cards

It can be very easy to rely on credit cards to make all of your daily purchases. However, when that bill comes in the mail, and you see just how much these small purchases add up to, the outstanding balance can be more than you predicted. It can also be tempting to only pay the minimum balance listed on the statement, promising yourself that you will be catch up on the payments eventually. A good rule of thumb is to never carry a credit card balance from month to month. If at all possible, it is best to pay the balance in full, but if this cannot happen, put together a plan to pay off the balance completely over time.

Not only should you not carry a large balance for too long on your credit cards, it also helps to pay them on time. As soon as you miss one or two payments, your card’s interest rates will skyrocket, making it even more difficult to pay down the balance. As soon as you receive the bill, make sure you do not put it aside and forget to pay it. You will be saving yourself hundreds of dollars in fees and penalties for the long run.

Monitor Your Credit Score / Report

It also helps to keep an eye on your credit score. A good credit score will make it easier for you to take out a loan in the future for big purchases, such as a home or a car. Also, you never know when you will hit a rough patch down the road and will need to take out a loan to help finance medical bills or pay off an unexpected expense. By periodically checking your credit report, you can keep track of your score and also make sure that no incorrect accounts or mistakes are on your credit report. It is best to discover these issues ahead of time and fix them before they become a bigger problem.

Practice Responsible Spending Habits

Paying off your credit card and creating a budget is one thing, but these cannot be possible without controlling your spending. One of the biggest ways to do this is to limit how much you spend on “non-necessary” items and differentiating between something you want and something you need. If there is a large item that you want, save up for that item and only purchase it when you have enough money to pay for that item. Keep an eye on the small purchases you make on a daily basis, as those do add up. Many consumers find success in allowing themselves to use a certain amount of cash every month on non-necessary expenses. Once the cash is gone, they are not able to purchase anything more of their “wanted” items. Resist the urge to rely on credit cards to pay for a cup of coffee or a new shirt after you go through your cash allowance for the month.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Bankruptcy Does to Your Credit Score

Posted on December 5, 2018by Admin

A common concern people have when filing for bankruptcy is the effect it will leave on their credit score and their ability to access credit, again. While bankruptcy does affect your credit score, it is sometimes the last resort to rebuild your credit and your financial future. In fact, it is oftentimes easier to reestablish your credit after filing for bankruptcy, because you are essentially given a “clean slate.”

It helps to sort through the myths and facts before making that final decision, and if you do choose to file for bankruptcy, this does not mean all hope is loss. There are proven ways to rebuild your credit score after bankruptcy, and our clients are proof!

My credit score said on all three reports 775, I couldn’t believe that I had such a great score before 10 years. Tim for me was the best move I have made for my situation. I have no regrets, I am glad the past is the past. – Bill T.

The effects of bankruptcy on a person’s credit score depends on the score the filer had before filing for bankruptcy. If you have a higher credit score, the effect the bankruptcy will have will be more noticeable. However, if you have a lower credit score to begin with, the change may not be as much after filing for bankruptcy.

According to data from FICO, for individuals who had credit scores of 780 or more, the average amount of decrease is around 240, with a resulting credit score of 540. If the filer had a fair credit score of around 680, the decrease is on average 150 points, resulting in a score of 530. Both scores end up at roughly the same point, but the drop that the filer sees in getting to that score is noticeably different.

The good news is the American credit scoring system allows consumers to rebuild their credit score quite quickly after filing for bankruptcy. Even with a credit score at 550, you can still get back to a respectable score within one to two years through demonstrating good financial habits.

These habits include monitoring your credit report on a regular basis, ensuring that any accounts that are at a zero balance. Many financial experts recommend using a secured credit card to use for purchases to rebuild credit. After some time has passed and you have successfully used the secured card for a period, you may be able to slowly take on new credit, although it is never recommended that you have more than one account opened within a six-month period.

Rebuilding your credit is important for many reasons, the main one being it will allow you to be able to borrow in the future. Many filers worry that they will never be in the financial situation to purchase a home or qualify for another loan- these are all bankruptcy myths. Stick to a budget and a sound financial plan following bankruptcy, and you will be back on your feet before you know it.

Bankruptcy Law, Debt Relief

Bouncing Back from Bankruptcy Can Happen Sooner than you Think

Posted on October 26, 2018by Admin

There are many misconceptions surrounding the amount of time it takes to rebuild credit after bankruptcy. But a new study reveals that individuals who file for bankruptcy can improve their credit score sooner than they think.

According to a recent study by LendingTree, more than 40 percent of consumers end up having a credit score of 640 one year after filing for bankruptcy. Approximately 65 percent of filers see the same score, at least, three years after the bankruptcy case is over.

What the study showed was that it is possible to bounce back from a bankruptcy, and relatively quickly. With proper planning and financial insight, it is possible for a bankruptcy filer to get back on his or her feet financially.

It helps to first evaluate how you got to the situation where bankruptcy was needed. Were you spending beyond your means and relying too heavily on credit? Perhaps a medical crisis brought on the debt or an unfortunate event like the loss of a job or a divorce caused the hardship.

The next step is to work on rebuilding your credit. One of the best ways to get credit back to where it once was is to pay all bills on time every month. Missing a payment is such an easy way to hurt your credit score. Put together a budget, see what your monthly expenses are, and stick to that budget. Make sure you have enough income every month to meet your monthly obligations, and set up automatic payments, if needed, to be sure no bills are missed.

In addition, the use of a secured credit card can also help rebuild credit. While these cards do have higher fees and lower spending limits, they can be excellent ways to build up credit and show that you can continue making payments on a card on a regular and consistent basis.

Once you use a secured credit card for a period of time, try to find a card with a lower interest rate. However, the key is to not overspend with this card. Use the card for only necessary expenses and make sure that the balance is paid off in full on a monthly basis.

Experts also recommend that you set up an emergency fund or savings account in the event you run into a financial crisis again in the future. Try putting away a small amount of money regularly on a monthly basis, if not setting up an automatic transfer into savings if possible. By having this emergency fund there, you are protecting yourself from having to rely on credit again in the event a major crisis occurs.

Following these tips and recommendations can help you rebuild your credit after bankruptcy. It may seem like the impossible dream, but with hard work and determination, it is possible.

See what some of our clients have to say about their credit score after filing for bankruptcy…

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case. It is only a month or two after discharge, and my credit scores are already in the upper 600’s. I’ve sent a screenshot if you would like to use this to show prospective clients. – C.S.

Click here to read more on this story.

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

How to Lower Credit Card Debt and Improve your Credit Score

Posted on October 24, 2018by Admin

Having a good credit score can make many things in life easier, especially when it comes to purchasing a new home or vehicle. However, it can be easy to get off track. Credit card debt with a high interest rate is one way to lower your credit score, but for many Americans, that is exactly what has happened to their financial situations.

The problem of credit card debt may be more widespread than we think. According to Experian, the average American consumer owes more than $6,000 in credit card debt. This figure has gone up three percent in just one year. This amount of debt can be very difficult to get out of, even for someone earning a decent annual income.

Retail credit cards can be particularly tempting, especially when offered a great deal at the cash register, but these cards come with high interest rates and can be easy to rack up debt. Unless you are able to pay the retail card off in full after making the purchase, it is not recommended that you sign up for these department store cards.

Many consumers believe that not having a credit card is best when it comes to staying out of debt, but it is important to at least establish a credit score. Having one card, using it for minimal expenses and making payments on the balance in full on a regular basis every month can be an excellent way to establish that strong credit score. In fact, by having a high credit score, you have a better chance of getting a card with a low interest rate when opening the account.

What happens if you do have credit card debt that has gotten out of hand? If possible, it is best to make a larger payment than the minimum payment amount. If any extra money is available in the person’s budget, it is best to put that extra money towards paying the debt. In addition, it can help to focus efforts on one card at a time, usually the card with the highest interest rate first. Once that card is paid, focus all the money that was going towards the first card on the next one and so on until the accounts are paid in full.

If you are not able to keep up on payments, contact the credit card company to negotiate a lower payment. If you fall behind on payments, it may be wise to contact a credit counselor to discuss repayment plans or negotiate the debt amount. If you are not able to make either of these options work, it may be time to talk to a bankruptcy attorney to discuss the options available to help eliminate the debt.

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Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Tips to Improve Your Credit Score

Posted on September 26, 2018by Admin

A consumer’s credit score can mean so much when it comes to buying a home or car, but once your credit score takes a serious hit, whether it be due to a default or a bankruptcy, you can start to rebuild your score immediately. One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Here are some tips to improve your overall credit score.

Understand How Credit Scores Are Calculated

It helps to first understand how credit scores are calculated. These reports are issued by the three major credit reporting companies, including TransUnion, Equifax, and Experian. The scores range between 350 to 800. The higher the score, the better. A credit score is calculated using that person’s payment history, the amounts owed on each account reported, how long that person has had a credit history, and how much credit activity is on their account.

Make a Goal

If you want to improve your credit score, it is important to set goals. Set the number you would like to see your credit score within a certain period of time. For example, you may choose to set a goal of increasing your credit score by 50 points within the next four months.

Keep an Eye on Your Credit Report

The best way to know where your credit score falls on the spectrum is to keep an eye on your credit report. Free credit reports can be requested annually online or by mailing a request to Annual Credit Report Request Service at P.O. Box 105281, Atlanta, GA 30348. After receiving the report, it is recommended that you carefully review all accounts listed. If you see any accounts that you know you did not open and could have been created due to identity theft, this information should be reported immediately. If an account is listed that should be closed, you can contact the company directly to update that information. The same would go for if any incorrect information is found on the report, such as a late payment incorrectly put on the account. Correcting this information can result in your credit score going up a few points. Keeping a close eye on your credit report can also allow you to track progress if you are working hard to improve the score.

Pay Your Bills on Time

The best way to keep your credit score looking good is to pay your bills on time. Credit builds up over time, and this is done through consistent and positive financial behavior. One way to ensure this happens is to sign up for automatic or online payments so that these expenses are paid automatically and require no action by the account holder. If you are not able to pay a bill on time, it is best to keep late payments to no more than 30 days. The reason for this is most creditors will not report late payments until they are 60 days late.

Focus on the Bad Debt

Paying down your debt is an excellent way to improve your credit score, and it helps to start with what is considered “bad” debt first. If you have multiple credit cards, choose the one with the highest balance and/or the highest interest rate. Focus your efforts on that one card, and once that card is paid, take the card that has the second highest rate. Many times, this “bad” card is the one that is the oldest and has the highest outstanding balance.

Use the debt avalanche method to attack the debt. What this entails is the person chooses the card with the highest interest rate, and he or she uses all extra money that he or she has available at paying off that card. After that card is paid off, the money that was used to pay that card goes to the next one, and so on. The idea is the money that goes towards the card snowballs in size, helping to pay each one down quicker than the person would be able to do with just meeting monthly minimum payments.

Do Not Open New Credit Accounts

While you are paying down debt, it is best to not open any new credit accounts during this time. Opening new accounts will only make the goal of trying to pay off open cards even harder. It can be tempting, especially if you are offered a deal at a department store to save on a purchase, but do not fall to temptation and open that new card.

Keep the Balances Low

Getting debt under control can be very difficult if the balances owed are particularly high. Credit cards that have high balances and high interest rates can be difficult to get under control. The higher the balance, the more interest is paid every month instead of money towards the principal. A good rule of thumb is to keep credit card balances capped at 30 percent of the card’s available credit. Always make sure when making payments that more money is being paid towards the card than the minimum payment. On cards with high balances, this minimum payment is normally only paying interest, which can make the cardholder feel like he or she is never going to pay the card off in full.

Set up an Emergency Fund

Experts recommend that everyone have a “rainy-day” fund of at least six months of that person’s annual income. This money should be set aside in the event of a health crisis or job loss and can help you avoid the need to use credit to keep up with daily expenses.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When will a Bankruptcy be removed from My Credit Report?

Posted on May 31, 2018by Admin

Making the decision to file for bankruptcy is never an easy one. Many people hold off on filing for fear of what bankruptcy will do to their credit once all is said and done. However, having a bankruptcy filing on a credit report does not necessarily mean the end of your finances or your ability to access new credit in the future. It is possible to begin rebuilding credit after filing for bankruptcy.

What Type of Bankruptcy?

The most common types are Chapter 7 and Chapter 13 bankruptcies. Chapter 7 bankruptcy is also known as a liquidation bankruptcy. This type of bankruptcy involves the bankruptcy trustee liquidating assets that are not otherwise exempt and paying off the qualified debts with the proceeds. Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

A Chapter 7 bankruptcy filing will take approximately 10 years from the date of filing before the case will come off of the filer’s credit report. On the other hand, a Chapter 13 bankruptcy is known as a reorganization bankruptcy. This case allows the filer to work with the bankruptcy trustee to put together a repayment plan to pay for some or all of the filer’s debts over the course of three to five years. A Chapter 13 bankruptcy case will be automatically deleted from the person’s credit report seven years from the date of filing.

Can the Process Be Faster?

It is possible to have the bankruptcy removed from the person’s credit report sooner than is normally allowed. There is a big misconception that bankruptcy cannot be removed from a credit report and that you will be penalized for 10 years, not being able to access new credit. The truth of the law or the way law is written, there’s a maximum amount of time a bankruptcy can remain on your report, but there is no minimum amount of time.

This is done by filing a dispute with all three of the credit bureaus. It is recommended that the person reviews the bankruptcy filing and the specific debts related to the bankruptcy that appear on the credit report. If any incorrect items are found, the person can file a dispute.

When a credit dispute is filed with one of the bureaus, it must be verified and validated for it to stay on that person’s credit report. If the disputed items are not verified within 30 days of the dispute, they must be removed from the credit report, including bankruptcies.

Getting Back on Your Feet.

Chapter 7 bankruptcy allows you to get a fresh start financially and erase past debts, but a legitimate concern consumers have is the effects it will have on their credit score and their ability to take out credit again.

One of the biggest misconceptions about filing for bankruptcy is that it will ruin your credit score and your financial future. To the contrary, after filing for bankruptcy you can begin restoring your credit right away.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Myths about bankruptcy and your credit score debunked

Posted on March 22, 2018by Admin

There are many misconceptions surrounding the amount of time it takes to rebuild your credit after bankruptcy. We are clearing up some of the common misconceptions about how bankruptcy affects your credit score.

Myth #1: All bankruptcy information stays on your credit report for ten years.

The Truth: Only the public record of a Chapter 7 bankruptcy lasts for ten years. All other bankruptcy references remain on your credit report for seven years, including: Line items stating “account included in bankruptcy;” Third-party collection debts, judgments and tax liens discharged in bankruptcy and Chapter 13 public record items. Once these items begin to disappear, you will see a bigger boost to your credit score.

Myth #2: You will have poor credit as long as the bankruptcy information stays on your credit report.

The Truth: This is one of the biggest misconceptions and one that our clients can tell you is a complete myth.

Hi Tim- I just wanted to send a quick note and thank you and your team for handling my bankruptcy case. It is only a month or two after discharge, and my credit scores are already in the upper 600’s. I’ve sent a screenshot in the event that you would like to use this to show prospective clients. – C.S.

You can begin to build your credit back with smart credit management. Within a few years, you can obtain a “good” credit score ranging from 700 – 749 by doing the following:

Adding new credit, such as secured credit cards or small installment loans, to offset the negative information on your credit report;
Making on-time payments for all debt, new and old;
Keeping your credit card balances under 30% utilization.

Myth #3: Bankruptcy affects the credit of all filers equally, regardless of the amount of debt.

The Truth: Your credit score will factor in details such as the amount of debt discharged and the proportion of negative to positive accounts on your credit report. If you have a low amount of debt and only a few accounts included in your bankruptcy, your credit score will be higher than someone with a more severe bankruptcy case.

Myth #4: You cannot get a credit card or loan after filing for bankruptcy.

The Truth: Credit cards are one of the best ways to begin rebuilding your credit and you will be surprised how quickly offers for them will appear in your mailbox after filing for bankruptcy. Secured credit cards, which require an upfront security deposit, allow you to spend and build credit easily and safely.

Myth #5: Bankruptcy will ruin your credit forever.

The Truth: Bankruptcy will damage your credit in the short term, but practicing good financial habits, can rebuild your credit to be stronger than ever. A report from the Federal Reserve Bank of Philadelphia showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, approximately six to eight months later. There are many ways to rebuild your credit after filing for bankruptcy. There are certain limitations you will face after filing, but taking advantage of the right financial tools can go a long way in helping you get back on the right path for your financial future.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Steps to Take if You Want to Buy a Home after Bankruptcy

Posted on March 21, 2018by Admin

After filing for bankruptcy, you are going to want to begin rebuilding your credit as soon as possible. You can start by checking your FREE annual credit report on AnnualCreditReport.com to get reports from the three major credit bureaus: Equifax, TransUnion and Experian.

Your report may show late and missed payments on credit cards, mortgages and credit accounts you may have opened or closed. Bankruptcy provides you with a clean slate, which means you have a second chance to pay your bills on-time and in full.

If your credit score is in the low 600s, your credit is still too low for most decent loans with good terms, but you can work quickly to get it back up in the mid-700s.

After bankruptcy, when accessing and utilizing credit again, keep your credit card balances relatively low compared to the card’s limit. For example, less than 30% is typically advised while using just 10% of the available credit is even better.

Once your credit score improves, you can then find the right mortgage lender, real estate agent, and the right attorney to move forward with the purchase of your new home.

Still not convinced? A testimonial from one of our clients in regards to their credit score after filing for bankruptcy.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Here’s How Much Debt the Average Consumer Racked Up Over the Holidays

Posted on January 9, 2018by Admin

A recent survey conducted by MagnifyMoney found consumers who took on debt this holiday season will start the New Year with an average of $1,003 in credit card debt. Last-minute gifts, entertaining costs, and fewer hours at work, can all add up to additional credit card debt.

What is troubling about this year’s findings is that the majority of consumers who went into debt did not plan on it. The vast majority (65.2%) of consumers who took on the debt did so unexpectedly and did not budget for the added expense.

Nearly half (46%) predict they will need four months or more to pay off their holiday debt, or will only make the minimum monthly payments.

Even a seemingly modest amount of debt can quickly balloon over time if not paid in full timely. A person carrying an average debt load of $1,003 who makes one $25 minimum payment per month would need 58 months (4.8 years) to pay off their debt. That calculation assumes an average annual percentage rate (APR) of 16%.

Here are some ways to beat the holiday debt cycle:

Understand where your money went. Track exactly where your money went the last three months. There are useful apps that can help you understand where your money has gone. LevelMoney splits your expenditure into fixed, recurring expenses and variable expenses.

Carefully review your credit report. You can download your report for free at AnnualCreditReport.com for all three bureaus.

Use the debt snowball method. A recent study found that consumers are more likely to stick to paying off debt when paying off credit cards with the smallest balances, first. This strategy provides consumers with small “wins” against debt and builds momentum to keep you motivated.

Make 2018 your year to be debt free! By taking the right approach and building good financial habits, you can successfully pay down debt in the New Year. Here are some ways to keep to your New Year’s Debt Resolutions. If holiday expenditures have put you over the limit financially, it might be time to examine your finances in closer detail and meet with a financial advisor or bankruptcy attorney. Here are some signs you should file for bankruptcy.

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Related Resources:

http://www.kgw.com/money/magnify-money/many-holiday-shoppers-will-start-the-new-year-with-1003-worth-of-debt/382430335