Managing your finances during the current economic slowdown or to be blunt, the recession can often be tough. Many of us, me included are finding it a real struggle making ends meet. Especially towards the end of the month. It seems that all my bills come out at the end of the month where as my pay cheque comes in at the start. This isn’t practical to say the least! One solution I have been using recently is a cash advance service or typical payday loan as they’re sometimes referred to. Now, these might not be everyones first choice, I realise that but when it comes to needing money to pay the bills month to month when things get a little tight, they really do come in handy. The Interest rates on cash advance loans tend to be more generous when compared to maxing out your store / credit cards also. I find that cash advance loans are easier to pay off than credit cards also as you’re bound to the contract and must pay it back as and when were as credit card debt just keeps on mounting and slowly growing out of control. If you’re a little short next month, give it a try.

It is important that you determine only one credit card which is your main and only used credit card after you fall into debt on multiple cards. After doing that, you will probably want to close your other credit card accounts – wait! Closing them can actually damage your credit score because it modifies two factors of information used in the formula to determine your credit score – the amount of debt and the lengthy credit history.

If you close a credit card account, you will lower your credit score by doing so and if there is still a balance on the credit card; the drop in credit rating will be even more noticeable. If you were to close the credit card which you have a lot of history with and leave your no other open credit accounts, you could see most of your positive credit score erased because you are no longer displaying your healthy credit history.

Keep in mind that your history does not actually get erased and if you closed an old account, no matter how far back the information is dated, it will still show in your credit report. Another helpful thing you can do is ask for an increase in credit limit on the card right before closing.