/Why You Should Tackle Your Debt This Spring

Why You Should Tackle Your Debt This Spring

There’s never a bad time to tackle debt, but the spring is an especially opportune time. Fox Business explains why:

“You really want to jealously guard your credit rating in 2018,” AskTheMoney.com’s Lynette Khalfani-Cox told FOX Business’ Maria Bartiromo on “Mornings with Maria.”

Debt plays a large role in your financial life. It can impact your spending ability, credit score, your ability and also your capacity to borrow money.

“Spring is a big home buying season and of course if you want to get say buy a home loan lenders are going to look at your credit reports,” Khalfani-Cox said Thursday.

Having a good credit score will help you qualify for lower interest rates and allow you to pay a lower finance charges on credit card balances and loans.

If you want to get a mortgage, keep your credit score high, Khalfani-Cox suggested.

“Generally they want to see you at 700 in terms of your FICO score or your Vantage score—700 points and higher,” she added.

Many Americans are also still recovering from holiday debt, which makes spring the time to get rid of it once and for all. U.S. households racked up an average of $1,054 of holiday debt in 2017—a five percent increase over 2016.

Pay it down before the summer, and see your credit score soar!