Making an extra payment can be a superb method of reducing your credit balance quickly. Combine this with discontinuing the use of your charge card and you will quickly be on your way to credit recovery. You may choose to apply for a consolidation loan to help quicken your recovery. (See Consolidation Loan section).
What if I cannot make Extra Payments?
If you are unable to make extra payments, then make the minimum payments, but if you cut back on the "extra's" as discussed above, chances are you will have a little extra money to apply to your credit accounts.
What should I do Before and After I pay-off a credit card?
Make sure the company has updated your credit account to R1. If you pay-off an account that is in collections, try to establish that once you pay off the account, they will remove the bad debt from your credit profile or update your account to R1; Get this in writing before you pay the account off! Apply the money paid to this account to another credit account. Make the adjustment in your Game Plan.
Note: Make sure you do not pay-off a credit account in full until you have made a minimum of 6 consistent monthly payments. This time gives you a chance to rebuild your consistency rating.