When you sign a credit agreement (whether it is a loan or an account at a store) you have entered into a legal contract with the credit provider and said that you agree to the terms and conditions that are in that contract. This means that you have agreed to pay back the monthly instalment on a fixed day every month, and if you do not do it, you are breaking the terms of the contract.
This is why you need to make sure that you manage your debt and finances responsibly, so that you can make sure to keep your credit profile healthy and continue to live within your means.
Here are some ways to manage your account healthily:
- Get and check your statements every month, so that you are sure of the payments and the outstanding balance on the account.
- Make sure your payments are in on time, so that you don’t have to pay any late charges or penalties. *A great way to do this is to put your payments on a debit order – just double check your statement to be sure that it’s going off on time!
- Always be aware of your current balance, including uncleared amounts, so that you are sure that there is enough money in your account for the debit order to go off.
- Pay more than the minimum required payment whenever possible.
- Contact your credit providers immediately if you see that you will not be able to make your monthly payment to make a different arrangement and show them that you are managing your finances responsibly and with awareness.
Managing your credit should be the easiest step in your journey, if you start by checking your credit profile at My Credit Check, a free facility brought to you by Compuscan, a leading credit bureau. We give you unlimited access to your credit profile so that you can always be aware of what your financial health looks like. Once you know this, choosing to borrow within your budget, and making responsible financial decisions, is easier. Get credit healthy today!