Financial goals are no different than any other goals, which means they’re easier to achieve in measurable and attainable steps rather than general resolutions. For example, you’re more likely to succeed when you say, “I’m planning to pay off my credit card debt by the end of year,” than “I’m going to do better with my finances.”

Raising Your Credit Score

Raising your credit score will take time and require some patience, but the following tips can help you get on the right track:

Avoid quick fixes. Beware of strategies that instantly raise your credit score. The best method is slow and steady. Being responsible over a long period of time provides the biggest payoff.
Check for errors. Regularly check your credit report for any errors or late payments. Convey any discrepancies to the credit bureau.
Make a payment plan. Set up a way to consistently pay your bills. If you’re making manual payments, be sure to set a reminder to pay on time to avoid late fees. If you’re enrolling in auto pay, set up what you know you can afford monthly, then make extra payments along the way. It’s wise to pay as much as possible on your credit card balance.
Stop using credit cards. Avoid using credit if possible, and don’t open new accounts. It won’t raise your credit score.
Tackle your debt. There are two strategies—pay off your highest interest cards first or knock out smaller debts one at a time. Regardless of which option you choose, always keep making minimum payments on your remaining cards. Also, don’t close your accounts once you’ve paid off the cards, as this is a short-term solution for raising your credit score.
Find a credit counselor. If you’re having financial trouble, consider talking with a professional. Do research to ensure they’re legitimate and won’t take advantage of you or your situation.

Tackling Debt

Here are some strategies to minimize your debt:

Record debts. Make a list of all your debt and exactly how much you owe. If you’re unable to find the balance, contact your lender. Write down what your minimum payments are as well.
Trim expenses. Find extra money in your budget by eliminating unnecessary expenses and spending. Check your monthly bank account statement to know where your money is going, then reduce or remove expenses. Some ideas are:
- Borrow books or movies from the library instead of purchasing or renting them.
- Exercise at home or outside rather than paying for a gym membership. There are a variety of apps for your mobile device with workout programs and personal training information.
- Cancel magazine or newspaper subscriptions you’re no longer using.
- Consider packing your lunch at home or making your own coffee instead of paying your local barista.
Save on Bills. Look for cost-saving opportunities through your insurance company, phone provider, and credit card accounts. Many businesses have lower rates available or discounts for paying in full. “Shopping around” for utilities and other bills can really pay off.
Reward yourself. Once you’ve eliminated your debt, treat yourself to a reward or gift. Print out a reminder, picture, or inspirational quote to visualize your success. Hang it on your refrigerator or office wall to provide daily motivation.
Find extra income. Look for ways to bring in additional cash flow. Could you pick up a part-time job or do some freelance work? Tutoring or delivery services are options too.
Check statements. Avoiding bills or bank statements because you’re afraid to check the balance won’t get you closer to your financial goals. Ignoring creditors’ calls also makes you vulnerable to lawsuits. Instead, be courageous and educate yourself about your spending habits. Take advantage of the online tools and mobile apps to help track your expenses.

When dealing with debt and credit problems, it’s okay to start small. Your debt most likely accumulated over time. Likewise, changing your financial future won’t be a quick fix. As you begin to see success in a few areas, it will build your momentum. A little forward progress might be just the push you need to change your habits and reach your financial goals.

Looking for more information? Check out these resources:

Myfico.com. How to repair your credit and improve your FICO® Scores. Accessed January 24, 2023.
http://www.myfico.com/crediteducation/improveyourscore.aspx

Intuit Mint Life. 10 Steps to Paying Off Your Debt. Accessed January 24, 2023.
https://www.mint.com/blog/goals/the-debt-destroyer-menthod-tackling-your-debts-one-by-one-0113/

Consumer Financial Protection Bureau. Where Can I Get My Credit Score? Accessed January 24, 2023.
Where can I get my credit score? | Consumer Financial Protection Bureau (consumerfinance.gov)

Dealing with Debt and Credit Problems

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