Once your credit score is turned truly terrible and new credit appears to be unlikely, there are a variety of options to consider. First, don’t ever let bad credit get you down. There are millions of consumers who are having the same financial difficulties and struggling to review what options are left. There is always hope for someone who has bad credit and a bad credit score.
Regardless of how bad a credit or debt situation may be, there are always some actions that can be taken. Actions that can increase your credit score or actions that can be taken to simply handle your debt payment problems.
The two biggest issues that individuals generally face with really bad credit is the inability to make certain purchases or procure services that require a good credit score and a good credit report. The second problem is that the individuals that have bad credit reports are often struggling to make their monthly payments.
Pay Attention To Your Financial Position
The first key to improvement is to stop ignoring the financial position you are in. If you have bad credit, you already know how difficult it is to get the things you want as well as how hard it is to meet your existing obligations. By addressing the problem and starting to fix the situation now, you are ensuring a better future for yourself. It may take a little time and sacrifice but for most people, anything is better than where they are now.
Whether you need to rebuild a damaged credit history or simply continue strengthening your rating, there are some simple things you can do to get closer to your goal. Here are the key elements to start down a path of better credit, a better budget and a better way of life.
Create A Manageable Budget
First, fix your budget shortfalls. Analyze if there is problem with mismatched spending and income levels. Now that sure is easy to say. But what do you do if your credit is ruined and your monthly expenses are killing you? The two options are to increase your monthly income or reduce your monthly expenses. For those individuals that have not reduced their expenses by buying less, shame on you. Cut back, cut back and then cut back some more.
For most people, extreme budgeting is the biggest factor on the road to a better credit score and better living. The credit score is not that important but most of us can do without eating at McDonalds or going to the department store for quite some time and in the end those changes will make life far easier.
Consider Filing For Bankruptcy
If your expenses cannot be reduced and the monthly debt payments are just too much, the next option to consider is a fresh start with a bankruptcy filing. Filing bankruptcy is a serious step to credit repair but when debts are overwhelming it may just be time to consult an attorney and see if this is the right option. Bankruptcy is a necessary evil and should not be frowned upon. You only have so many years on this planet; there is no reason to endure prolonged discomfort because of bills that are often the result of our lending industry over selling debt loads to you and millions of other Americans.
Start Fresh And Establish A Better Credit History
The next step is to start to immediately re-establish new credit. This can be done in a number of ways such as by using secure credit cards, credit accounts that you may still have available to you, and new credit accounts from department stores.
Even if the cost of the credit is moderately high, you do not have to keep a large balance on these accounts. Simply use the accounts to establish a good payment record so your credit going forward looks good and your credit score can be evaluated based on at least some timely credit payments.
Don’t Be Afraid To Ask For Help
Now it’s time to consider repairing your credit. This task involves making any payments you can on delinquent accounts. Use your judgment on which ones to address and which ones to tell go fish. After that, start disputing and correcting any errors in your credit report no matter how trivial the error is. The key is to dispute the error and hope the creditor does not respond to the credit reporting agency in time and the credit account is removed from your credit report. You can hire a credit repair agency, like CreditRepair.com, who will manage the entire credit repair process for you.
We all know that good credit is important for a good financial future but it’s just as important that you live a good life that is free of guilt and concern about how to make your monthly payments.