Do it yourself Credit Repair
One day you realize that you are in a serious personal financial disaster situation. If you want to avoid a situation that is so out of control there is no way out, you need to make the effort and take the time to get your money management and credit use habits back on track. You don't need to rush into "debt consolidation" or "home equity loan." You can work out a strategic repair plan for yourself.
You will start by collecting all your credit reports, bill payment statements, and credit card statements, mortgage and insurance records. Locate debt worksheets on the internet to help you work. All of these steps will be taking place at the same time.
Remember that there are 3 major credit reporting bureaus and you need all 3 reports. You must make sure that the reports are accurately reflecting your credit profile. Be like a bulldog and hang on. This will probably take some written communications between you and the agencies.
Record in black and white all of your financial obligations. This will affect the money management part of the plan. Do list all credit cards in order of highest to lowest interest rates. Also include the monthly minimum payment required for each card.
Figure out your disposable income. This is the amount of your salary that goes for necessities such as mortgage, car loans, credit card payments, utilities, other loan payments. When you subtract this amount from your salary, you will have your discretionary income. This is the income you can devote to reducing debt.
Determine which credit cards and loans you can pay down in order. For the first on the list, pay as much over minimum as possible. Pay minimum on the others. When the first is completed, apply that payment to the next in line and so on. This will be an ongoing money management strategy for a long time.
Commitment is definitely needed when you take on this major project. You will have to change your lifestyle. You have to stop living above your means. There will be no more unnecessary spending. Buy only essentials, eat at home, find alternatives to travel. The BIG MUST IS STOP CHARGING.
Your current situation was not something that "happened "to you. You are responsible for creating it and you are responsible for repairing it. It wasn't created overnight. It won't be fixed overnight.
You will start by collecting all your credit reports, bill payment statements, and credit card statements, mortgage and insurance records. Locate debt worksheets on the internet to help you work. All of these steps will be taking place at the same time.
Remember that there are 3 major credit reporting bureaus and you need all 3 reports. You must make sure that the reports are accurately reflecting your credit profile. Be like a bulldog and hang on. This will probably take some written communications between you and the agencies.
Record in black and white all of your financial obligations. This will affect the money management part of the plan. Do list all credit cards in order of highest to lowest interest rates. Also include the monthly minimum payment required for each card.
Figure out your disposable income. This is the amount of your salary that goes for necessities such as mortgage, car loans, credit card payments, utilities, other loan payments. When you subtract this amount from your salary, you will have your discretionary income. This is the income you can devote to reducing debt.
Determine which credit cards and loans you can pay down in order. For the first on the list, pay as much over minimum as possible. Pay minimum on the others. When the first is completed, apply that payment to the next in line and so on. This will be an ongoing money management strategy for a long time.
Commitment is definitely needed when you take on this major project. You will have to change your lifestyle. You have to stop living above your means. There will be no more unnecessary spending. Buy only essentials, eat at home, find alternatives to travel. The BIG MUST IS STOP CHARGING.
Your current situation was not something that "happened "to you. You are responsible for creating it and you are responsible for repairing it. It wasn't created overnight. It won't be fixed overnight.
About the Author:
With unprecedented problems in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
posted by Credit Counseling at
11:44 AM
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