Whether you’re in debt because you’ve overspent on your credit cards, or because you’ve taken out too many loans to fund your consumer spending lifestyle, the time has now come to accept the cold harsh reality of what you’ve done: you’ve spent more than you’ve earned!
But, don’t beat yourself up over this too much, every single one of us needs to keep a very careful eye on our debt levels, because things can easily change. Here are 5 quick-fix ways to help repair your bad credit rating:
Stop creating debt and payback what you owe
You’ve accepted the fact that you are in over your head so far as debt is concerned, all you need to do now is accept that you have to implement a successful debt management program. And, to do this you need to fully understand not only that you need to arrange to repay your existing debt, you also need to stop creating any more debt – now.
The good times are over – time has come to live within your means. It may sound harsh, but before you know it you’ll be on the road to financial recovery and your bad credit days will all be a thing of the past!
Show me the money
Literally put, “show me the money!” means you do exactly that – show yourself where each and every dime of your money is being spent. Now, chances are that in the bad days of overspending you neglected to keep proper accounts of where you were spending your money for fear of realizing you were spending more than you were earning.
Those days are gone! In order for you to return to a healthy credit rating, you’re going to need to live on the essentials and you can only determine that once you know where all of your money is being spent. Also, keep in mind that if you are going to succeed you’re going to need to find other ways of earning money- so get the local paper out and start looking through all of those part-time job openings.
Talk with your existing creditors
If there is one thing creditors really hate, it’s having a debtor who hides from them. Believe it or not, you do yourself more damage not talking to your creditors than you do by just not paying them.
So, you’ll need to manage your existing debt repayment with your creditors as soon as possible. If you talk with your creditors you may well find that they’re actually a very understanding lot. Moreover, by keeping in regular contact with your creditors, you’ll also find they are less trigger-happy when it comes to putting your name down on a bad creditor list: it’s the difference between knowing you’re having a hard time repaying and not being willing to repay.
Consolidate your debt
If you think it is going to help your case, arrange to consolidate all of your existing outstanding debt into one debt and then talk and deal with that one creditor. This way you should be able to manage your debt more effectively and hopefully stay off any bad creditor list.
Obtain a credit repair report
As soon as you realize you’re having problems making repayment of your debt obtain a credit repair report. If you notice anything on the report that shouldn’t be there, talk with that creditor and arrange for them to amend the report. If other creditors should have put you on the report, but haven’t, talk with them straight away and ask them to give you a grace period in which to get your finances back on track.
Then, once you’re back on track and your finances are looking healthy again, obtain another credit repair report and see if any further damage has been done to your credit rating. Again, if you think there are things on the report that shouldn’t be there, talk with your creditor to make sure they make the necessary changes.
Hopefully following these simple 5 procedures will help you to repair your bad credit rating in double quick time.