Review your credit report
If you have never done so in the past, it is time to order a free copy of your credit report. Review the information on it so that you can clean it up. Dispute the wrong information and address the negative items that are hurting your credit score.
Review your credit score
It is more important to check your credit score before applying for credit. Order a copy of your credit score to see where you stand with the lenders.
Pay your balances in full
Start paying off the balances on your credit card more aggressively till they are completely paid off. After that make it a point to charge only what you can afford to pay off completely at the end of each month. Avoid the expensive interest rates and finance fee.
Opt out carefully
Increase in the interest rates on your credit card may feel unfair and make you feel like cancelling the credit card. Do not do so till you have paid off the balance. Do not close credit cards that might hurt your credit score. If you have to opt out, do so after making sure that you have other credit data being reported to the credit bureaus and other credit cards that you can use.
Build an emergency fund
Start saving up for an emergency fund that will sustain your living expenses for 6 to 12 months if your current income happens to dwindle. This will reduce your reliance on credit and debt in times of financial direness.
Pay your bills on time
Pay all your bills on time so that you avoid the expensive late fee and hurting your credit score.
Only take the loans you need
Only take the loans you need. Avoid taking loans for expenses that you can avoid. Buy only what you can afford with your current income.
Make a budget for your household expenses. Make a budget if you want to pay off your debt. Make a budget so that you can plan for your expenses every month in advance. Make a budget so that you are more in control of how and where you spend and avoid the unnecessary expenses. This will help you save more and use the money where it’s needed.