Many military households may be intimidated when dealing with a damaged credit score, but there are many ways to repair it. Getting your credit score under control will not only help improve your financial situation, but it will allow you to make larger investments in the future.
Debt can come from all sorts of things, and most of it affects your credit score. Making payments on time and in full can boost your score. However, missing payments, even by a day, can make your score fall quickly. Defaulting on debt can be an additional strain on your credit score. If you are dealing with debt on multiple fronts, it is important to identify what you are dealing with so you can make a plan of attack.
Pay off your largest bills first
It is very important to pinpoint the most pressing credit bills you have and start to pay those fees first. This doesn’t mean neglecting smaller bills, but maintain minimum payments on those accounts. Knocking down your most sizable fees will help cut down on your debt quickly. You may also feel better about your expenses, as you slowly get yourself back on track.
Don’t avoid minimum payments
If you can’t pay off a balance in one shot, don’t neglect it. If you can pay the minimum, do it. Hopefully, this will just be for a short time, and you can get back to paying off larger amounts. By missing payments, you could spike the interest levels, and it could become harder to pay off in the long term.
Avoid neglecting your credit
Once you have paid down your balances, you should think twice about avoiding using credit altogether. When disciplined, you can help build your credit history by charging small amounts of money, and paying off its entirety before the due date. However, it is very important not to let this task get out of hand, as you may end up in the same position as before.
Getting through a difficult credit situation can be tough, but don’t worry, you are not alone. As more and more households rely on credit nowadays, many military families struggle with financial issues, and there is help available. Going to Omni Financial to seek aid is a good place to start. Staffed with former military personnel and military advocates who can create a financing plan best for your circumstances, Omni is always here to help.