LAREDO, TX (KGNS) – It’s a new year, and 2019 is behind us now, but there’s one thing that is not staying in the past and that’s the expenses that were made celebrating the end of the year.
“They start around October, people start using their credit cards,” said Laura Gonzalez. “It’s cause it’s so easy to charge, and the best advice that I can give them is be aware. Check your statements.”
Laura Gonzalez with GL Credit Repair, says the beginning of the year is the time when credit card debt is most common and at its highest. This mainly has to do with the expenses made during the end of the year celebrations.
“Because of the Christmas gifts. Unfortunately, they are not aware the in the long run it’s going to affect them a lot.”
Laura says there are ways to avoid paying more than you borrowed.
“From one credit card to another and you’ll be saving a lot of money because within that year they are not going to charge you interest rate whatsoever.”
If credit card balances have been maxed out, and payments can’t be made, there are things that can be done.
“If they can’t afford to pay the accounts because they probably have a lot on them, is to contact the credit card company.”
She says banks can sometimes work with you, by lowering the interest rate and closing the account, in exchange of payment but there are consequences to your credit score, much like not paying on time.
“Once you start with a late payment, it impacts your score forty to fifty points depending on the type of account that it is, which in this case would be credit cards.”
Laura highly recommends being in communication with your credit card company, but if all else fails there’s another thing you could try.
“What they can do with a consolidation company is they can put everything into one single payment, they can reduce the interest rate, but it’s going to impact their credit score tremendously.”
Over all, she recommends keeping a close eye on your spending and credit card balances which is extremely important for your credit score and future.
For more information on debt and consolidation you can contact GL Credit Repair at 723-2027.