The average American household with at least one credit card has nearly $9,200 in credit card debt, according to CNN Money, and the average interest rate runs in the mid- to high teens at any given time.
Know what information lenders have on you.
While you’re cleaning up your debt, order copies of your credit reports, which are free, and your credit scores, which cost about $15, since the information contained in them will directly affect the interest rates you’re offered on credit cards, mortgages and other loans.
There are three major credit bureaus: Experian, Equifax and TransUnion. Each collects information on your credit history which is culled into a credit report. From that report, a credit score is derived. That score is a quick way for lenders to assess how risky you are as a potential borrower. The higher your score, the less risk you pose to lenders and the more likely it is that you’ll get their best available rates.
Sometimes it makes sense to borrow - a lot of times it doesn’t.
It’s almost impossible to live debt-free; most of us can’t pay cash for our homes or our children’s college educations. But too many of us let debt get out of hand.
Ideally, experts say, your total monthly long-term debt payments, including your mortgage and credit cards, should not exceed 36 percent of your gross monthly income. That’s one metric mortgage bankers consider when assessing the creditworthiness of a potential borrower.
Dealing with debt collectors rarely is a pleasant activity. They call you up at all hours of the night, send you nasty letters and can make your life a living nightmare.
Unless you’re “judgment-proof” (that is, broke) or plan to file for bankruptcy, most credit counselors believe that you shouldn’t ignore your debt or try to hide from a debt collector. Generally, the longer you put off resolving the issue, the worse the situation and consequences will become.
I am browsing through the internet every day to read about what’s going on with the Economy (Credit Crisis, Recession etc.). Every day I have been very disappointed about the overwhelming negative developments, but today I finally found some good news about our economy that I would like to share with you.
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