2011 – The effect on credit scores and debt. Now that 2011 is over, we can take a look at how people did with their credit over the year. According to the Arizona Republic, the news isgood…and bad. Across the country, credit scores actually dropped eight points to fall to an average of 660. In Arizona,which has tended to run below the national average, this year was no exception with the average score at 656. The problem with scores like these is that people will pay more for things like higher interest on mortgages and higher rates for car loans and healthinsurance. More positive was the news on credit card debt. This fell 11% to an average of $6,576. However, in December, Arizonans did boost their card balances by four percent which was one of the biggest increases of any of the states for the month. We would like to think this is due to some pick up in employment, or people feeling more comfortable with staying employed. Hopefully this is the case. What’s most important is looking ahead and seeing what we can do to bring up credit scores while reducing credit debt. One easy way is to pay off the credit card debt to bring down the ratio of outstanding debt. The ideal is to have outstanding credit card debt be no more than 25% of the credit line. When this is accomplished, it can help raise the score. What can be even more effective is to get a credit consultation. This is different than whole sale credit repair in that it’s a way to review one’s credit history, get a plan to make relevant changes, and it’s inexpensive. At I Clean Ugly Credit, past clients have been able to recoup the cost and save even more within a few months of going through this and following the plan. If more people did this, 2012 could have news that is good on both scores and debt! Give us a call today! |
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CategoriesBasic InformaitonEntertaining Inspirational Nancy's posts Short Sale Success Stories |
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