Saffers stuck in debt spiralTue, 10 Apr 2012 7:53 AM
He recommends the following tips to keep a healthy credit score:
- Ensure that monthly debt repayments are made on time. Even a payment that is only 24 hours late can be bad for a credit rating;
- Always pay the minimum instalment required;
- Pay your most "expensive" debts off first. These are the accounts charging the highest levels of interest such as clothing and furniture accounts;
- Close accounts not in use. Credit providers assess the full facility of the credit agreements on record, even if they are not being used.
- If possible, pay more than the minimum payment on accounts to further improve your credit standing;
- Don’t ignore a letter of demand. Always be proactive and take appropriate action;
- If you simply cannot make payment on all your outstanding accounts, you can speak to a debt counsellor that will negotiate on your behalf for revised terms on settling your outstanding debt.