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3 Tips That Will Keep You out of Credit Trouble

No one wants to go up to a cash register, swipe their card and hear the cashier tell them that the transaction is denied. No one wants to look at their monthly bill and feel their stomach turn at the total. Credit trouble is terrible to deal with. Check out these simple tips to stay out of it from now on:

See a Professional

A professional’s guidance can go a long way. When you’re having a difficult time with your credit, you should go to a licensed insolvency trustee for advice.

They often offer credit counselling services to get you out of a rough spot and teach you valuable financial lessons that you can put into practice for the rest of your life. They can also tell you how consumer proposal services can help you get out of debt or when your best option is to file for personal bankruptcy. These debt relief services are more intensive measures that guide people out of serious financial trouble.

Make an Emergency Fund

What do you do when there’s an emergency that you can’t afford? You put it on your credit card and deal with it later.

But, swiping it on the card puts you in a precarious situation because if you encounter another emergency, you’re going to have much less credit to rely on. It will either push you to ignore the problem to save money, or it will push you to apply for a payday loan that takes years to resolve. Either way, you’re leaving yourself vulnerable to acquiring lots of unsecured debt.

The solution to this problem is to start saving up for an emergency fund. A small emergency fund should have approximately $500 to $1500 inside of it to cover these unexpected costs. It will be enough savings to tackle a minor repair or urgent appointment without touching your credit. It’s an important safety-net to set up now to catch you later on.

Don’t Miss a Payment

It’s simple. Pay your bills on time, every time. This move will do more than give you a healthy score on your consumer credit report. Making your bill payments will help you avoid credit card debt because you won’t have to deal with higher payments and late fees. You can keep the costs low and easily controlled.

If you’re worried that your bills are going to slip your mind and you’re going to miss a payment by accident, there are plenty of solutions out there. Automate bill payments through your bank so that the money is instantly put towards your credit card. Or, download money-management apps to track all of your upcoming bills and send reminders to pay before the due date. Use your tech to bypass this simple slip-up.

These are all simple changes that can completely transform your personal finances. You don’t have to win the lottery or invest in the stock market. Talk to a professional, make some smart savings and keep a payment schedule — that’s all you need to do to see a positive change.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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