How to Eliminate Debt Without Hurting Your Credit

Due to recession many people are carrying a huge debt to pay. But none of them want to hurt their credit history. They want to pay the debts without hurting their credit. But it is not possible, if they know that how to calculate credit scores, then it may help. You can find here three simple tips that how to eliminate debt.

1) Try to make payments on all debts: To build your credit score one thing you can do that you have to make all payments on time. When you decide to pay the debt, you will generally try to eliminate one by one. But it is not good for your credit. Try to make at least the minimum amount for all debts. Thus you don’t have to pay any extra payment for every single debt.

2) Stop applying for new credit: You have to avoid if you are going to applying for new credit as it can drag down your credit score. First you try to eliminate your all debts, and then try for new credit if you require. If you take any new credit then debt burden will increase and you couldn’t be able to eliminate your debts easily.

3) Don’t close existing credit: If you have credit card debt, then don’t close your card account as it may hurt your credit score. You have to keep credit card account exist. The length of time that you have taken to pay your debt is used to calculate your credit. If you want you can stop your card, but keep your account open.

Using these three steps you can be able to know that how to eliminate debt easily without hurting your credit scores.