Improving Your Credit and Lowering Your Debt in 2017

There are five major factors that go into your credit score. Payment History, Utilization (ratio of credit card balances to credit limits), Age of Credit, Types of Credit, and Inquiries. Obviously you need to make all your payments on time, or at least before the next due date. Focusing on lowering your Utilization will help with making your payments in the future and will increase your credit score. Once you go over 30% Utilization your scores will drop. You must come up with a way to lower your balances. You really need to sit down and write this plan out. Start with a six month plan. Can you get a second income? You need to eliminate some discretionary spending. Reduce the amount you spend on restaurants/bars, fast food, convenience stores (a real killer), entertainment, etc. You will be amazed how much you are spending and how much you can save if you are focused and committed to this task. You should focus on the credit card with the highest interest rate first and then move onto the next card. This is called debt stacking. The only exception would be if you can pay off a card entirely withing one month than focus on that card first. This plan is a vital step towards financial freedom. Your credit scores can cost or save you money every month. It's never about how much money you make, it's about how much money you can save. I know many people that make six figure incomes and they are broke.