Credit Card Debt: A Few Simple Options

Low Credit Card Balances

Did you know that your level of credit card debt may be hurting your credit score—even if you always make your payments on time?

Lenders will often assess your total amount of credit card debt to get an idea of how much you’re depending on “borrowed” money. Having too many cards will make you appear to be stretched thin with debt, and you may be considered a risk.

That’s why lowering the amount of your credit card debt can help to improve your overall credit score and build a better reputation with lenders. With lower credit card balances, getting approved for loans will be easier and your finances will be much more manageable.

Always keep each card’s balance below 20% of the limit
Having between 3 and 5 cards is normally recommended
It helps to pay your balances off in full every month

Credit Card Debt and Collections

If your credit card debt has gone to collections, it’s important that you find a way to resolve it—nothing looks worse than accounts that you’ve defaulted or ignored. And while it may seem impossible to pay these old debts, you can actually have the amount you owe reduced by up to 60% through negotiating a debt settlement.

Debt settlement is one of the most effective forms of debt relief, making it possible to pay off your collections for just pennies on the dollar. Remember, as long as you’re dragging around that old, unpaid credit card debt, your score’s going to take the hit.

My Credit Group provides Relief from Debt

My Credit Group puts emphasis on managing credit card debt by providing personal credit coaches that can help you determine:

How many cards you should have to optimize your credit
The best approach to resolving your collections, and
The most effective ways to manage your personal credit profile

Don’t let credit card debt ruin your chances of getting a loan or passing a credit check. It’s easy to adjustments that will help to raise your score and make a better impression with new lenders and creditors.