Eliminate Debt Without Hurting Your Credit

Is your debt growing and consuming all your monthly income? Now eliminate debt without hurting your credit, all you need is commitment and sacrifice. But before you take any step I suggest you to know how credit scores are calculated. To help you out I have highlighted 3 simple ways to eliminate debt that to without hurting your credit.

You must continue to make payments on all debts - Now this is very common with most of the people that they concentrate on only one debt, considering it to be the most vital. Now this is can be very bad for you future financial life. I suggest you to make at least the minimum payment on all debts in addition to applying extra payments to one debt. So, start making payments on time.

Avoid applying for new credit - Are you aware of the fact that signing up for many cards in the hopes that one company will approve can drag down your score? If you don't then it is very important for you to know that every time you apply for new credit, it is recorded as an inquiry on your credit report. And too many such enquiries can hurt your credit. So, it is advisable not to apply for it unless you are fairly certain it will be approved.

Do not cancel existing credit – Do you know, the length of time you have had credit is used to calculate your credit score. So, leave the account open even after the balance is paid off. Cancelling the account can actually hurt you credit.