The content is accurate at the time of publication and is subject to change.

More and more people are having difficulty in paying their debts. Because of the economic crisis that led to unemployment, people can barely keep up with their expenses. Some used to have big houses and expensive cars but now, they had to make drastic changes in their lives. And for most of us, this is very devastating. So, we should try to still pay our bills on time for us to maintain a good credit history because having a good credit score can help us in the long run.

I have too many debts and I am having difficulty paying them. What should I do?

If you have too many debts, and you lose track on the due date of each, what you need to do is to look for a consolidating company. First, you need to classify your debts. Organize them by type or by lender. And look for a consolidating company that can combine by type or by lender. Consolidating them would make it easier for you to manage. Instead of running around chasing several due dates, and taking track of a ton of paper bills, you can just have one combined debt and one due date. This way, you can avoid bad credit.

There are a lot of things we need right now. How can I avoid bad credit with all these debts?

The most important thing when you are trying to keep away from a bad credit history is to avoid too much loans and credit. The more you take out loans, the more you are heading towards not being able to pay them all. So, the first thing you need to do is to evaluate whether a loan is really a necessity because if it is not, and it just caters to your luxury then do not apply for it.

Will changing addresses and phone numbers possibly bring me bad credit history?

Yes it does. Whenever you change your address and your phone number and you are not able to give this important information to your lenders as soon as possible, they might be sending you notices and you are not aware of it. You may not know that you are near defaulting on your loans and credit card bills because these statements are being sent to a bad address and they are calling a different number. If this happens, this will cause you to be reported negatively. So, be a responsible debtor and inform your creditors or lenders all updated contact information.