Personal finance rules: Tackle debt this spring

Spring cleaning for your finances

AskTheMoney.com's Lynnette Khalfani-Cox on the impact of the tax reform legislation and how to improve your finances and credit score.

When it comes to spring cleaning you may want to clean out a closet or rearrange your garage, but you also may want to tidy up your debt.

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“You really want to jealously guard your credit rating in 2018,” AskTheMoney.com's Lynette Khalfani-Cox told FOX Business’ Maria Bartiromo on “Mornings with Maria.”

Debt plays a large role in your financial life. It can impact your spending ability, credit score, your ability and also your capacity to borrow money.

“Spring is a big home buying season and of course if you want to get say buy a home loan lenders are going to look at your credit reports,” Khalfani-Cox said Thursday.

Having a good credit score will help you qualify for lower interest rates and allow you to pay a lower finance charges on credit card balances and loans.

If you want to get a mortgage, keep your credit score high, Khalfani-Cox suggested.

“Generally they want to see you at 700 in terms of your FICO score or your Vantage score -- 700 points and higher,” she added.

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Spring is also a good time to tackle holiday debt, Khalfani-Cox pointed out.

Americans racked up an average of $1,054 of holiday debt in 2017, according to MagnifyMoney, which also represented a 5% increase for the previous year.

“Debt is an area we definitely have to tackle. It’s going to affect your savings, your net worth and your ability to invest for the future,” she added.

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