Unpaid Bills Can Damage Your Credit Rating - CREDIT SCORE

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CREDIT SCORE: Unpaid bills can damage your credit rating


Unpaid bills can damage your credit rating and make it impossible to obtain credit when you need it, for example, for a new home or car purchase.

If you find yourself in debt and unable to pay your bills on time or at all, there are two basic steps to take:

- Set up a payment plan. Establish a budget or payment plan and stick to it to retire all debts. Creditors will work with you if you show sincerity and determination. Developing a budget and disciplining your spending is the key to creating and maintaining healthy credit.

- Seek the advice of a credit counselor.

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