If you have a lot of credit card debt, you are likely successful as a person, but not be successful in the way you handle your credit cards. With some good credit counseling, anyone can change for the better. According to a recent article by USA Today, wealthy people handle their credit cards differently compared to people with debt or a lower net worth. By talking to a trained credit counselor, you can learn how to budget, save and plan as well as pay off credit card debt that prevents you from becoming rich. It’s interesting to see how the wealthy approach credit cards. Adopting better financial habits can improve your financial station in life, especially after you rid yourself of debt with a Debt Management Plan.
Using fewer credit cards
After consolidating your debt and becoming debt free, commit to carrying fewer credit cards. While paying off your debt, you should practice credit card abstinence. Having a credit card doesn’t spell financial doom. Experts say rich people don’t take out dozens of credit cards. In fact, author Tom Corley found only 8 percent of wealthy people use more than one credit card.
Paying the balance in full
Another habit wealthy people have is to pay off their balance in full every month. Ninety-percent of poor people keep a credit card balance, but just 5 percent of rich people fail to pay off their balance in full each month. By paying your entire balance, you improve you credit score.
Getting the bills paid on time
Part of credit counseling is learning how to budget so you aren’t short the money you need to pay certain bills when they become due. Corley discovered 67 percent of people with low incomes had late payments within the last year. Amazingly, the rich people surveyed didn’t have any late bills in the last 12 months. Paying your bills on time takes money as well as discipline and organizational abilities. At Christian Credit Counselors, we don’t judge or criticize. Instead, we show you helpful financial strategies that work.
Collecting rewards and points
Rich people don’t let their reward points go to waste. Eighty-one percent of the wealthy people surveyed have reward dollars or points versus nine percent of the poor people who had points. USA Today recommends people don’t just buy things to acquire points.
Knowing your credit score
It’s important to know your credit score, but it’s more important to know what you can do to improve it. Perhaps it comes naturally for wealthier people. The survey found 77 percent of rich people know their credit score versus 5 percent of the poor.
At Christian Credit Counselors, we can help you learn what you can do to increase your credit score and consolidate your debt. Our qualified team of credit counselors provides debt counseling.
Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.