Few Americans are strangers to debt in the modern world. Credit card debt is particularly prevalent in the business and personal finance landscapes as Michigan residents attempt to negotiate the waning years of the economic recession and take stock of the debt accrued during these challenging times. A variety of strategies are available to help counter the negative effects of debt on American families, from simple spending habits to bankruptcy.
Influencing a credit score can be very important if an individual is in the market to secure a large loan or a mortgage. Credit scores are calculated in part by looking at the number of late and missed payments on an account. If those numbers are high, opening a second line of credit and paying it off consistently can help to even them out. It also looks good on one's credit history to have more than one available source of credit.
Credit utilization is calculated by determining how much credit is available but not currently tied up. In order to boost a utilization score, asking for a higher limit can increase the amount of available credit and improve the score across the board. Of course, in both cases, responsible spending habits should be exercised to avoid exacerbating the problem.
Credit card debt can follow a family or individual for years. Michigan residents understand how long it can take to dig out of a financially challenging situation, particularly in a fragile economic climate. Thankfully, it is possible to limit the negative effects of this type of debt through a variety of channels. Consolidation and bankruptcy are both effective at reducing, and at times forgiving, debt outright.
Source: US News and World Report, "Do These 3 Things to Improve Your Credit Health", Bethy Hardeman, April 10, 2014