Maintaining a positive credit history can be hard and sometimes we need a little help repairing our mistakes. Vivix Credit Solutions is here to help, whether you need an item removed from your credit report or help improving your score. To get you started on the right path, following are some simple steps for you to take that will help you meet your debt management challenges.

1. Pay off small balances first – This at first seems counter-intuitive. Paying off a large balance will drop the debt/credit ratio on that one account, but you will get more for your money by paying off smaller balances first. This is because your credit score will improve with each card that reaches a zero balance. As a bonus, the satisfaction that comes from having a card paid off will motivate you to pay off your other accounts.

2. Check monthly statements carefully – Reviewing your bills in a timely manner can save you big money. Just like store receipts, credit card statements can be inaccurate. Catching incorrect, unauthorized or fraudulent charges as they happen is crucial to debt management. Changes to your card agreement, such as interest rate hikes and yearly fee increases, can also be dealt with and your card balance can be transferred if needed.

3. Keep one card open for emergencies – While it is important to actually use your cards in order to establish a credit history, it is wise to leave one card with a zero balance. This allows you to accommodate emergency or other large purchases. When your water heater gives out or a pet needs sudden medical attention, you want to have that credit line available. But remember, because this card is rarely used, it may have a high interest rate. Charge wisely.

4. Know your debt ratios – To successfully manage debt, it is important to know how your credit worthiness is calculated. One way this is done is by analyzing your total debt compared to total credit available. Aim to keep your accounts at 25% of your total credit line – less is better. Also, your income as compared to your total debt is taken into consideration when buying or renting a home. Know your ratios and keep these in mind when you see an item you would like to finance.

5. Live within your means – Perhaps the biggest stumbling block when it comes to managing credit wisely is learning to live within our means. Living on credit is dangerous, but buying only what you can pay for will keep you debt free. Remember that while others may have more stuff, they likely also have more debt. When financing is unavoidable, do it responsibly. Educate yourself about how it will impact your credit and future buying power and you will be on your way to successful debt management.

Vivix Credit Solutions is committed to helping you fix your credit, no matter the situation. Please give one of our Credit Experts a call today to see what we can do for you.