Getting overwhelmed by debt can be a highly stressful time in one’s life. Yet aside from the overwhelming levels of stress, it can also harm your credit score and affect your ability to apply for loans in the future. With a low credit score, creditors will either outright reject your loan application or slap you with a higher-than-normal interest rate, which makes it even more difficult to repay your existing debt. To help you during these tough financial times, here are six tips on how to shield your credit from the side effects of debt:

Lower Frequency of Use 

Although it sounds counterproductive, continuing to use your credit card amidst a looming personal debt crisis can keep your scores from drastically plummeting. That being said, make sure to reduce the frequency that you use your credit card as well as the utilization rate, which pertains to the percentage of the credit card limit being used. A low utilization rate implies that you only consume a modest portion of your available line of credit, which can ultimately boost your credit score. If building or maintaining a good credit rating while in debt is your main objective, this tactic can help you achieve just that.

Use a Secured Credit Card 

Think of secured credit cards as a provisional solution. Use them with caution and avoid carrying a balance at the end of each month. The advantage of getting a secured credit card is that applicants don’t even need a strong credit score. You only need to pay a deposit with the bank or credit card issuer. The limit on your secured credit card varies based on the size of the security deposit you leave to your issuer. Similar with how you use a regular credit card, you can pay for goods and services using a secured credit card. On-time payments and a low utilization rate can help bolster an established credit record over time. But as mentioned earlier, secured credit cards should be treated as a temporary solution since it tends to charge higher maintenance fees and can lead to a hard inquiry, which can temporarily dent your score.

Carry Cash 

If it’s becoming increasingly difficult to repay your loans and credit cards, you may want to temporarily freeze your credit cards altogether. You don’t have to go to the trouble of going to your bank to cease your credit card; simply stop carrying it when you go out and instead pay for your purchases with cash. If you are still tempted to use it, you can find a lot of different ways to restrict you from using or reaching your credit card, such as freezing it in a block of ice or letting their spouse or trusted friends to hold the card for them. Regardless of what method you use, find one that works best for you and stick to it.

Get Expert Help 

Debt management agencies, like Nationwide Debt Reduction Services, can help you find the right solution for your specific situation. The range of services that companies, like Nationwide Debt Reduction Services, offer include, but are not limited to, Debt Reduction, Debt Consolidation, and Credit Counseling. You can also find a plethora of resources and tools on the website of companies, like Nationwide Debt Reduction Services, that can help you build personal and household budget plans, develop effective spending habits, and leverage credit products wisely.

Declare Rent Payments 

Ask your property manager or landlord to report your rent payments. Although traditionally not included in your credit report, this piece of information can be added to your credit history. You’ll have to make rent payments via a third-party agency that allows for reporting of rent, which usually involves a small fee for processing. In some cases, your landlord may agree to cover the fee. Credit-scoring algorithms will take this added data into consideration when calculating your credit score.

Live Healthy

Any good intentions towards saving your credit scores from the effects of debt are thrown out the window if you don’t have the right mindset. And the tactics you employ to safeguard your credit while in debt do not have to be solely related to personal finances. Sometimes, it takes the right mindset to make the right financial judgment and snap decisions. Living healthy lowers your stress and keeps you focused on the credit score-boosting strategies that you’ve set out to do. Choosing a healthy lifestyle also means lower risk of getting ill, which means job and income security as well as avoiding the ludicrously high costs of medical care.

Final Thoughts 

Keeping your credit history squeaky clean even while in debt is easy and straightforward. It requires consistent and deliberate financial habits combined with the help of experts, such as Nationwide Debt Reduction Services.