-FICO: which is a credit score creator is looking to bump credit scores up.

-Believe it or not medical bills cause a lot of debt, we think our insurance is covering it but it is really going to collections.

*Many people believe that if you pay everything but one dollar every payment it can raise your credit score but it actually can hinder you more than it will help you. By waiting to pay that one dollar, you lose your grace period to pay back what you put on the card without interest and without fees. When you don't pay back your full bill you are putting yourself at risk to be slammed with hidden fees and also your interest could be boosted up to 25-30%.

-If you are in "Medium-level debt," use your extra money in the bank to pay off debt.

- If you are in "deep debt," sell a major asset to help pay off debt.

In the video "How to Get Out of Credit Card Debt," David Bloom talks with author Jean Chatzky about her book, "Talking Money. 

In the interview, Chatzky explains the different levels of debt and what you can do to pull yourself out of it.

The first level of debt is called "medium-level debt." Medium-level debt is when you have debt but you still have extra money in the bank. Chatzky says that in order to pay off debt, you can raid savings, pay off the highest rate card first, consolidate to a low-rate card, and eliminate store cards.

The second level of debt is called "deep debt." Deep debt is when you owe so much money that you are unable to save, spend, or do anything with your money. To effectively pay off deep debt, you can sell major assets, consolidate with a home equity loan, borrow from your life insurance policy, borrow from your 401K, or you can file bankruptcy (as a last resort).

What I have learned is that there are different levels of debt and that there are many ways that you can go about paying it off, eradicating debt leads to financial security, and that you can't do anything with your money until you pay off your debt. My opinion on the topic is that we should not spend a lot of money on your card, avoid filing for bankruptcy, and that credit cards are dangerous business.

• Use assets to pay off debt
• Use extra income to rebuild savings

•If you are spending 50%-100% of income servicing debt:

• Consolidate credit cards
• Use savings to pay off principal

•If you are 1 or more times your income in debt:

• Consider personal bankruptcy
• Close all lines of credit

-People pay their bill too quickly or too slowly.

*People have been paying off their bill in full before the grace period is over. This is saving many people money because they aren't having to pay interest on the funds put onto the card. This is causing some credit card company's to lose money and some such as South West Bell Card and Card Miles to inevitably close down.

I watched the video “Your credit score may be going up”. It interested me because usually when people talk about credit scores, it is usually about how low it is or a negative thing about it. The video talked about how a credit score ranges from 300 to 850, and if you don’t have a credit score of at least 720 than you are probably not going to get the best rate for a loan. It mentions that the credit score creators FICO are looking to bump up credit scores. They are going to do that by bumping up the scores of people who have paid off things. For example, you were late paying a phone bill and it messed up your credit but you later paid it off, it won’t affect your score anymore. That also applies to medical bills because a lot of people think that their insurance is paying for the medical bills but it is really going to collections and they aren’t aware for a while and it adds up and messes up their credit. Once it is paid off, FICO won’t allow it to affect your score anymore and your score may even go up 25 points.