There has been a lot of talk lately on the news about people getting ripped off by illegitimate Credit Repair Agencies.  Personally, I wouldn’t even use one.  You can pretty much do all the work that they are going to do yourself by following a few simple steps. 

Call your credit card companies and ask them to lower your rate.  If they tell you they can’t, speak to a supervisor. 

A few years ago I called Capital One’s credit card company to cancel my credit card.  I had three and didn’t need that many.  While I was on the phone with them, they asked me why I was cancelling my card.  I informed them of my decision, and also told them the rate was too high.  They offered to lower the rate to 4.9%, so I decided to keep them for awhile longer.

Write down exactly how much you owe each debtor, the minimum payment, and how much extra you can pay towards it each month.  Put any “extra” money towards the highest interest rate loan. 

I know many people like the “debt snowball” approach, but I can’t say that I am the biggest fan of it.  I would hate to know I was throwing away so much money in interest each month when I could be saving money.  To me, it’s more important to save money on interest I am paying.  It’s all personal choice. 

Being careful with credit repair agencies and your money in general can be an easy process.  Guard your social security number, write out a budget, check your balances and rates, and work out your own plan.  Think smarter, not harder!

Posted under Pay Off Debt