We all have credit cards or did. Some of us use them on a daily basis. Others just for certain things. However, a lot of us over do it and then when we are in a bind use the credit card more and more. To save money, right? Wrong.
You may have a good interest rate on your credit card right now, but when the bill rolls around, the payment is higher, bills are piling up around you, and money is short. What do you do? What we all do. Put off the credit card payments. Just this time because we need to catch these other bills up. We all need power, water, cable, and food right? Only it doesn't stop there. We continue to put them off one more time is our motto.
No, you have a bigger problem. Your cards are maxed out and closed. Collections are calling you to get that payment they need, but you don't have it. Over the last few months you have some how managed to kill your credit and the interest rates on the once good card have now sky-rocketed.
You know what you'll do. Get another credit card, but you can't...unless it's a high risk credit card. Because yes, you are a high risk credit customer now. So, how can you get rid of the overly high interest rates and pay off those credit cards? Slowly, one by one. Pay more than the minimum on them. Don't put them off any longer. You can always consolidate your bills. But you'll still be high risk.
Can you get ahead after the downfall you took? Yes, and here is how. Take one or two of those small limit, high risk credit cards and start rebuilding your credit. How? Put one small thing on it every month and when the bill comes in pay it that same day if you can. That way you're not behind on the payment and they will eventually raise your limit and the interest will start dropping.
Before you know it, you'll no longer be a high risk credit customer and will be able to get the best interest rates again, but until then, make your payments on time. Not just credit cards, everything. Anything over 30 days late will reflect on your credit report, too many of them and you'll be rebuilding your credit...again. Patience and a good budget will be your best friend throughout this process. Good Luck!