Common Debt Mistakes and How to Avoid Them

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There are lots of different mistakes people make that get them further into debt. Eliminating these basic mistakes is a good way to start getting yourself on the right track, but if you’re in over your head as many people are, it’s time to seek debt reduction services in New York. That’s where Century First Credit Solutions can help. Give us a call right now at (855) 796-1861 to start discussing your options today. In the meantime, here are four common mistakes you can start getting rid of right now.

1. Making Only the Minimum Payment

This is one of the biggest mistakes that many credit card customers make. While it can be tempting to only make the minimum payment on your credit cards, if you can afford to pay more, you definitely should. There are two reasons for this. One is that you may see a minimum payment that’s so low, it seems negligible. However, if you multiply that low minimum payment by five different cards, it becomes a much higher burden. The second is that if you look at what your payment is actually being applied to, much of it is eaten by interest. In effect, you may only be paying a few dollars toward your actual balance each month.

2. Relying on Store Cards

Store cards are notoriously high in their APRs, and you should avoid them at all costs. While you’ll want to eliminate all credit cards eventually, store cards are the ones to tackle first and definitely include in any credit card debt consolidation plan in which you enroll.

3. Not Reviewing Your Monthly Statements

It’s easy to ignore those electronic notices you get that your monthly statement is available. While once upon a time when statements came in the mail and it was the only way to verify and check your balance, these days it’s as simple as logging onto your account to get real time information. However, whether you look at your statement as a PDF or on paper in the mail, that’s where you are going to get hard information you can use to fully understand how you’re being charged and for what.

There are lots of small habits that may not seem like much at the time, but they add up. Contact us today to find out how you can not only eliminate these issues, but also reduce your debts as much as possible and finally live a debt free life.

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