There are several positive outcomes to be had if someone helps you pay off your credit card debt on schedule:
1 improved credit score : timely payments can significantly improve your credit rating. Your payment history accounts for 35 percent of your fico score, so regular, on-time payments show creditors that you are a responsible borrower.
2. reduced interest charges : paying off your credit card debt on schedule saves you money on late fees and reduces the amount of interest you pay. Credit cards often have high interest rates, so paying off your balance each month can save you a significant amount of money in interest charges over time.
3. increased credit limit : regularly paying off your credit card debt can result in increased credit limits from your card issuer. A higher credit limit can raise your credit utilization ratio (the amount of credit you use relative to your credit limit), which can further improve your credit score.
4. better financial health : managing credit card debt effectively reduces financial stress and gives you more flexibility in your budget. You can allocate more if you don’t have the burden of high-interest debt.
