You gotta love the internet.
As I began to search online for tips to help me fix my bad credit situation… I came across several different articles that were very helpful to me. One of the best articles I found was at this site right here:
eHow has a whole entire section within their money and finances section dedicated to people like me who have bad credit and are looking for things they can do about it.
There was a point in my life where the debt just became over-bearing for. Not to mention that I just lost a major source of my income… so I was getting more and more stressed by the day.
I knew if I want to make a positive change… I would have to have a positive outlook and a positive attitude. Otherwise… I might have just gotten to a breaking point where I just wouldn’t even want to live anymore to deal with the constant struggles and pain.
Luckily… I told myself… let’s make the most of this situation and find the positive route to fix it. So that’s what I did when I found this powerful article right here.
One of the things you have to realize is that sometimes what is showing on your credit report isn’t always complete accurate. So it’s important that you request a free credit report from one of the biggest credit bureaus to double check that you’re not getting whacked for something that is not accurate in the first place.
You can go here to get your free credit report once a year:
If you find that you have any outstanding debts on your credit report… come up with a plan to re-pay them as soon as possible. (I recommend you start with the highest interest debts first… then take that amount and go to the next one. If you stay consistent… you’ll begin to see your debts rapidly decline rather quickly.)
During my search… I found several organization that will help you communicate with your creditors of debt collectors to help you come up with a settlement plan. What they don’t tell you is that if you settle… the remaining balance that you don’t have to pay anymore is now reported to the government as income. And because it’s consider income… you may probably have to pay taxes on that money.
Some people will tell you to consolidate your debts. I didn’t do that. But if you decide to go that route… you suggest you contact a non-profit credit counseling organization to help you. They’ll help you put a plan together to help you lower your payments and get you debt back under some control.
Credit repair companies are interesting. I don’t know how much I trust them. They want you to pay them up-front to help you for work you pretty much can do yourself. They make some really bold promises that sounds almost too good to be true. But just beware… because sometimes they can just make you go further into debt.
The final step I’m going to leave with you today is this:
If you can have the discipline to do it… I recommend you close all your credit card accounts and cut up your cards. You’ll have to change your lifestyle and develop new habits which include only spending money that is truly necessary like food and gas. Then use the rest of your money to pay down your debts.
This isn’t easy for most people. We come accustomed to a particular type of lifestyle… and to have to change what is already an everyday ordinary way of life for you is hard. Trust me… I’ve been there and done that. I’ve gone through it. But out of necessity for survival… I had to change and make some significant alterations to my life.
If you want to get your finances back in order… you really don’t have a choice. It’s a MUST. That’s it for now.
I’ll give you more tips on how to fix your bad credit in my next blog post.