Managing your credit worthiness is easier said than done. Getting into debt is easy, but to get rid of that debt not so much.
Budget, budget, budget! – ensure that you have a proper budget in place each month. Make sure there is a financial buffer in place for incase the interest rate increases. Furthermore, take out a debit order for your debt to be paid back. This is much easier, since it can easily happen that you forget to pay your debt. This will lead to you being listed as a bad payer.
Avoid taking out unnecessary credit cards. These are a luxury, not a must have. Rather pay cash for your purchases than use your credit card, even though it might seem convenient. Also ensure that you do not skip any monthly repayments. The institution you owe money will be able to detect it and list you as a bad payer.
In a case where you get a cash bonus, rather spend the money on debt that is in arrears than spend everything on unnecessary things. If you are in a situation where you receive demand letters, be sure not to ignore them. Rather pay the institution you owe money, or make an alternative arrangement. These institutions appreciate it when they know where they stand with you.
Remember that there need to be enough money in your account for debit orders to be paid. Whenever a debit order returns unpaid, especially consecutively, debtors tend to list you as a bad payer.
With this information on keeping a healthy credit worthiness, you as the consumer can prevent bad credit worthiness. Do you, or will you, follow this advice?