The ending of the year can be an excellent time to start making plans on what to do better next year. Making changes to improve your credit and financial situation is one of the best ways to ensure a better future for you and your family.

Many people make resolutions to change certain things, however, after a month or so, they go back to their old ways. They seem to slide right back into credit disarray when their resolutions are not kept. This year, make resolutions that you can keep and the following credit resolutions should be ones that you will be able to continue.

1. Get rid of excess credit cards. It is unnecessary to hold onto the cards that are old and without a balance. Having them will just add to the risk factor regarding your credit history, because whether or not there is a balance owed, it still will tell lenders that you continue to have access to that credit.

When they are calculating the debt to income ratio, it is essential that the amount of debts do not exceed your income. By having old cards with credit available will alert the lenders to the possibility of going beyond your means, especially if you are tight on the lenders debt ratio.

2. Make a resolution to pay the balances down on your remaining credit cards. While it is a financially wise decision to pick the cards with the highest rate to concentrate on ridding yourself of, it would be a better credit decision to try to pay down the ones that may be close to being at the maximum limit. Experts say that it is best to keep the balances under 50% of the total limit of the credit card. You can typically increase your credit score if you can possibly keep the balances at 30% or even less of the card’s limit.

3. Pay your monthly minimum amount every single month. Do this without fail and it will be a huge financial advantage for a fresh start concerning your credit. Not only will it be beneficial to your credit report when you make timely payments every month, it will also help you avoid being smacked with higher interest rates and additional fees on your credit cards. Most credit card issuers reserve the right to increase your annual percentage rate if you are late making your monthly payments. In addition to the higher rate, you will inevitably be charged a late fee, as well.

4. Make a credit resolution to stop running from your creditors. Sometimes it is painful talking to creditors that call demanding money that you may not even have to give them. The truth of the matter is that your creditor wants to be paid, even if it isnít the exact amount that they are asking. If you speak with them and explain that you are willing to pay a set amount that you can afford, chances are good that they will accept it. Make sure that you keep your word and pay the agreed amount until the debt is paid; youíll be on your way to clearing your credit for a better future.

Do everything that you can in order to start the New Year off right, keeping the goal in mind of gaining a better credit and financial situation. Stick with these suggested credit resolutions to assist you in the quest for financial well being and freedom.

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