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They Laughed When I Said I’d Get Better Credit– Now They Beg Me For My Secrets!
The first step is to have a self intervention and make a true assessment of your situation. Deal with the facts and not the hype. Start with the information how you are evaluated by financial community and get copies of your credit report. You can get this for free by getting in touch with one of the three credit agencies namely Equifax, Experian, and Trans Union or you can learn more via one of our sponsors by clicking on CREDIT REPORT.
Once you get your credit report, review it, the credit reporting companies are just that, they report what the financial institutions give them. These institutions are actually their customers from Banks, Loan Companies, cell phone networks, gas companies, etc) they work for the same people that may be providing wrong or mis-information. That’s right the system is rigged against you, so you have take charge. Its a PIA (Pain the A%%) but it is how you are being judged. If it just so happens that there is a discrepancy in your credit report to , it is within your rights to question the reports. Keep good records, have a plan and keep a communication record, so that your story is heard.
Now, if your a bit of dead beat, or had some bad luck, or just an idiot, or just a really disorganized person, life throws you curve-balls, so you have to deal with the reality and t if the credit report is correct, credit card can only be done by paying it off. Communication is the key, It will be a good idea to talk to your creditors, be polite but firm and have your story documented on the past and what your plan is for the future and then strike a deal which will allow you to pay the said amount that works on terms, where the crushing burden of debt is gone. Now you can’t live high on your creditors backs, but you can work out a compromise that makes you sweat a little, give you some clean air to breathe and gives your creditors a responsible plan to get paid back. Get it in writing, not on Rosie the telemarketers word, make sure its written on paper/email, so you have something to hold on to if ever they decide to change their minds. You can also use this to leverage other creditors to get them to work on consolidating debt and even get some new credit cards with lesser interest rates, and maybe a balance transfer so that you are paying off more debt and and less interest.
Should you have problems talking to your creditor, don’t give up and instead hire a credit repair company to act as the mediator. Talking to professionals has a lot of benefits and two of them happen to be lower payment and interest terms.
Credit repair takes time and since money is always the issue, be ready to make certain sacrifices and reduce your expenses. If what you are earning is not enough, you may have to sell off some valuables and assets. A good rule of thumb is 1/3 rule, 1/3 of your net pay for rent/mortgage, 1/3 net pay living expenses and your personal credit card debt should never exceed 1/3 net pay x pay times, so if after taxes you take home $1,000 a month, 1/3 of that is $333 x 12 paychecks = roughly $4,000 total credit card revolving debt. Personally I would recommend that you pay off your (advertisement: credit cards) every month and invest the into positive income.
Top Credit Card Offers No one said that when you are undergoing credit repair, you cannot use your credit card. In fact, you can still use it just make sure you do not max it like before because your total debt compared to your total credit makes up 30% of your credit score.
Filing for bankruptcy is only a last resort option and a good attorney can advise you on when it makes the most sense for your circumstances. The Bankruptcy options is a lot like starting over which can be really good but its also means you will tied with both hands behind your back in terms of the financial world. Your financial record will be kept on file for 3-7 years and during this time and getting credit will be extremely hard, if not impossible to do. But restarts in life can be good , just make sure you understand what you are getting into.
The credit repair tips mentioned are easy but really hard to to follow. Once you take these steps, assess your situation, look it in the eye with facts, make sure the credit reports are correct, consider your options, make a plan and then each day take one step towards your goal of financial independence and you start paying off your debt, it will be a struggle because credit repair and financial discipline are not easy. Everyone’s circumstances are different and it depends how much you owe the creditors and how much you earn combined with how you spend your earnings. Some individuals owe a thousand or two while for others it is too big to even mention For some its an income problem, others its a spending problems, some both.
Either way analyze your situation, take the appropriate steps and make sure this does not happen again. Good Luck, It takes commitment for a positive financial lifestyle.