When times get tough and money gets tight, it can be very easy to start making essential purchases with your credit cards. It’s a slippery slope though, as credit card debt can rack up quickly. If you start to miss payments, this can leave you in a position that can eventually destroy your credit score. Last week, we shared Part 1 of our list of tips and tricks you can use to protect your credit score in situations like this. In case you missed it, you can catch up on the first part here. This week, we’ll waste no time in jumping right into Part 2!
Look Into Balance Transfer Cards
When you’re stuck with credit card bills with high interest rates and no feasible way to pay them off in a timely manner, balance transfer cards might be a good option for you. Balance transfer cards work exactly as you probably would assume; you can use them to transfer balances from credit cards with interest rates over to balance transfer cards, oftentimes with 0% interest. The only catch is that there is typically a small one-time fee attached to these types of cards. Check out this simple explanation.
As a quick disclaimer, it’s important to note that these cards don’t function as a quick fix for all debts and balances. However, if they are used wisely, they can be a great asset when paying off credit cards without accruing unnecessary interest. Sure, there are fees associated with them, but these cards have the potential to save you a lot of money in the long run.
Reassess Your Budget
Our last tip here may seem like a no-brainer, but it’s the start of a brand new year, so what better time to start taking a second look at your budget? If you’re struggling with credit card balances (or any other type of debt for that matter), it’s worth reassessing your budget. Even when times are tough, there are often areas in all of our budgets that we can tighten up on in order to reallocate funds towards paying off those debts. Don’t get us wrong here, tightening up on budgets is never easy or comfortable, but it can reap a lot of benefits if you stick with it.
Seek Advice from the Money Advice Service
We all need advice from time to time, especially when it comes to managing your personal finances. And while we can offer general tips and tricks here on the ScoresMatter Blog, we understand that each and every one of our readers is in a unique situation. That’s why it’s important to seek out specific advice. Our recommendation? Reach out to the Money Advice Service. They offer impartial advice for free, including services online and over the phone. Their YouTube channel also offers a host of different video resources that can be of help. Check out their website for more information.
Over the past year, we’ve all faced unprecedented financial difficulties. In some circumstances, paying for even the most essential needs can be a challenge, especially when things get tight. With all of these pressures, nobody wants to see mounting credit card debt and a plummeting credit score added to their plate. That’s why we hope these tricks will help you to bolster your credit score and get your finances back to a manageable place.
Keep checking in with the ScoresMatter Blog for more tips!