Free Soldier of Finance by Jeff Rose

for a while or consolidating debts if you can. Trading in your expensive car for a cheaper one that you can afford could also prove prudent. Whatever it takes, you must be realistic about your position and act accordingly.
    You may need to make some lifestyle changes. If you eat out a lot, learn how to cook. Everyone needs recreation time, but if you can't pay for expensive concert tickets or a day at a sporting event and still make your payments, find a less expensive form of relaxation, at least until your situation becomes manageable.
    The most important thing to remember is that having credit cards and installment loans on your credit record demonstrates that you can be trusted to repay your debts, but only if you fulfill all the commitments you made when you took the loan. To keep your credit score high, you cannot miss payments. Ever.
MY UNNECESSARY DEBT
    I wish I could tell you that I have never gotten into unnecessary debt. But I have, which is how I know you can get it under control. I've done it.
    The worst debt I've ever had came from the years I was in college. The National Guard paid my tuition and fees, and I had my one-weekend-a-month military service bringing in some money, in addition to a part-time job. There was absolutely no reason for me to get into debt.
    Unfortunately, I inherited my father's money skills. I started applying for credit cards from a few local department stores. The Buckle, a clothing boutique for the young and trendy, was one of my favorites. Since I was young, I felt a great need to be trendy. It didn't take long to max out my card. Other cards weren't as bad, but I carried balances on all of them from month to month.
    Then a friend educated me on the ease of getting student loans. My college was completely paid for, so I had absolutely no need for the loan, but I discovered all I had to do was apply and it was mine. It was easier than a payday loan. I filled out a couple of applications and within weeks a check for $2,700 arrived in the mail, with absolutely no requirements. I could spend it on anything I wanted. And I didn't have to begin to pay it back until after I graduated.
    Three semesters on, I suddenly had student loans of more than $10,000. By that time my credit cards were up to $8,000. That's a lot of debt with virtually nothing to show for it other than a lot of junk that I not only didn't need, but wasn't worth $18,000.
    My dilemma hit me one day and I became angry with myself when I realized how far I had let myself go. Enough was enough. I couldn't blame the credit card companies for extending the credit to me. It was my own fault that I bought things. I couldn't blame the government for giving me a student loan that I had no business applying for in the first place. I vowed I would never do that again. With the help of my future wife, I made a plan to pay it off. I felt lucky to graduate with only $18,000 in debt. I realize many people rely on student loans to finance their education. If you genuinely need it, I understand, but most people build up far more debt than they need to. Most of the things we buy, we do not need.
PAY DOWN YOUR DEBT
    There is only one way to really improve your credit score: by paying off your debt. If your debt balances are too high, you run a much larger risk of being hit with the inability to keep up, resulting in collection calls and a direct hit on your FICO score. The faster you pay it off, the faster your credit will improve.
    No magic formula exists for paying down debt. The first step is to stop incurring more. Next, take a look at your debt and see how you can optimize it. Do you have credit cards that you can use to complete a balance transfer, saving on interest immediately? If you found errors on your credit report, your newly improved credit score may give you the option of refinancing at lower interest rates. Any time you can move credit card debt from the card to an installment loan, you will likely be better off.
    Once you have