A quote attributed to Albert Einstein is the definition of insanity: Doing the same thing over and over again and expecting different results. So many articles, books and magazines tell us how to reduce debt or change things we do with money. Why do the people who need it most resist change? The answer is simple change is hard!
The easy answer is to cut up your credit cards. Credit cards establish and affect your credit (FICO) score. If you do not own a home, this can have a significant effect on your credit. What would you do if you were overweight or gained some weight? Would you stop eating? Of course not, you would learn how to eat better and increase exercise. That is why there are so many diet books! Some financial experts say to cut up your credit cards. You must learn how to manage your credit or you will be paying a higher interest rate. One way to take control of your credit cards is to use them only for essentials. Buy only what you can comfortably pay off at the end of the month. Have a running tally of your purchases during the month. You can check your purchases on-line. Create a budget where you pay for the new purchases on the end of the month and put a certain amount towards the balance. Your budget should determine how quickly you can pay off the balance and stick to it. FICO scores indicate how responsible you are in paying your bills. So, the more responsible you are with your money the more likely your FICO score will go up.
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