Related Services - The following companies and services offer a wide variety of financial programs to assist you with handling your debts. Consolidate your bills with a debt consolidation loan or use a debt management or credit counseling service for help with your credit card bills and other payments.
- Debt Consolidation Help - Learn about the debt consolidation process and review detailed listings for lenders and services offering to help consolidate your debts.
- Settlement of Debt - If you have too many credit cards and other small debts and are unable to make your payments, this form of debt negotiation may be right for you.
- Consumer Debt Management - Too many credit bills for you to handle with your budget? Compare different programs and find the one that is the right match for your individual situation.
Cutting Your Costs
Simple Strategies for Saving Money on Loans and Credit Cards
Loans and credit cards provide great consumer benefits, but as with any form of borrowed money, you've got to be careful about how you manage credit. Here are tips for saving money on credit products — in your basic financial affairs, when shopping for new credit, and when using loans and credit cards.
1. Pay your bills on time to maintain a good credit record and qualify for low rates. Don't wait until the last minute to pay your monthly bills. Not only will you incur late-payment fees, but perhaps more importantly you risk triggering higher interest costs. That's because your payment history on your debts and bills is one of the biggest factors in your credit report and credit score.
A credit report is a compilation of how you pay your credit card bill, loans, rent, and selected other debts and bills. A credit score is a number that is based on your credit report and reflects your financial responsibility. Both are part of your overall credit history, which can determine your chances for a low-cost loan or a lower interest rate on a credit card.
While one or two late payments over a long period of time may not significantly damage your credit history, if at all, making a habit of missing payments can result in a higher interest rate, higher fees or both when you apply for any type of loan or credit card. Lenders put more emphasis on your recent payment history, so be particularly careful with payments in the months before you apply for a loan.
Consumers who pay their credit card bill late may face a major hike in their interest rate — often to between 29 and 35 percent. Late payments on that card also can trigger rate increases on other cards or loans, especially if your credit record shows other signs of risk.
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.
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Last updated on 8/10/2007