As young adults we juggle many things. School, work, sports, friends, relationships…the pile is high. But, none of the above is a reason to fall behind on your bills , especially in 2018 where technology is our best friend.
Most people aren’t completely clear on what a credit card really is; it’s an unsecured loan meaning it’s borrowed money that must be paid back, with interest. How you pay it back, and when you pay it back, is a big deal. Did you know your payment history makes up 35% of your credit score? It also builds your reputation with lenders and grows your score.
Good payment habits include:
1. Paying on Time: you can master this practice by setting up automated payments through your financial institution. Just be sure that you always have the cash in your account to cover all of your monthly payments.
2. Pay More: I know it sounds bizarre but paying more will get your further. There is always a minimum payment we must pay each month on our loans, but paying more than the minimum will allow you to knock out debt quicker and you’ll avoid that pesky interest.
3. Private Account: If you want to get really serious you can set up an account just for your bills. Add up your monthlypayments and make sure that amount lives in this account every month. That way you won’t spend from this account and you’ll never miss a payment.
Debt is tricky but, no worries, because you have me to help you along the way. If you have any more money questions be sure to contact me on social at @YoungFreeMI.
Stay Young & Be Free,