Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
These days, credit is one of life’s necessities. It is something that you will rely on for a long while, which is why it’s vital that you are proactive in repairing any debt issues. Managing multiple credit accounts can become overwhelming, and cause you to fall behind on payments. Rather than accept the fact that you have a below-average credit score, take the necessary steps to get your debt back under control. Here are five tips for recovering from damaged credit.
Review Your Credit Report
Start off by reviewing your credit report for any inconsistencies or false accounts. Particular sites like MyFICO allow you to request a free copy of your credit report. Embedded in your report is the data used to generate your credit score. Check specifically for any accounts of late payments and make sure that they are accurate. You should also check the accuracy of the listed balance on your accounts. You can dispute any errors with the credit bureau.
Use Payment Reminders
Late payments have a substantial impact on your credit score. Creditors implement late payment fees that may be as high as the payment amount itself. Avoid making late payments by setting reminders a week and a few days in advance. This can help curb your spending habits so that you don’t end up in a situation where you remember to make the payment last minute, but do not have the funds needed to do so.
Prioritize Credit Accounts
Although all of your debt requires payment, it is essential to pay attention to the specifics of your credit agreements. All credit accounts have an annual percentage rate (APR). The higher the APR, the more you can expect to pay as long as you maintain a balance on that account. Make it a priority to pay off accounts with higher APRs to limit the chances of your debt issues further intensifying.
Lower Account Balances
You should never get too close to your credit limit. If your cap is $5000 a month, your balance should be below $1500 for an ideal sub 30% utilization rate. The closer you are to your credit limit, the higher the chances are of you “maxing out” your credit card. Rather than attempt to pay off balances one at a time, collectively lower your account balances, and you’ll notice a jump in your credit score.
Speak With an Attorney
If paying off your credit card debt isn’t an option, you may want to acquire the legal services of an Illinois debt settlement attorney. Heather Benveniste with Benveniste Law Offices is that attorney. She has experience negotiating the debts of Illinois debtors and can work with you to achieve much-needed debt relief. Heather can also help lower your debt balances and settle on a debt repayment plan on the most favorable terms for you. Contact us today for a free case evaluation.
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