How fix my credit

how fix my credit

How To Repair Bad Credit

Each year hundreds of companies are providing consumers with fixing my credit strategies and credit repair programs for those who find themselves in a bind.  Some of these companies that provide debt counseling and relief are subsidized by the same credit card companies and don’t always tend to have the consumer’s best interest in mind.

This website provides information on how to fix your credit and will give you some basic ideas and options before the collection agency starts calling.

With this economy in a recession and the number of layoffs, bankruptcy and foreclosures on the rise, many consumers find themselves in a burden.   Maybe a recent illness or layoff or unforeseen event has forced a spouse out of a job.

The important thing to learn is to be honest with your current debt situation and not let things spiral out of control.

Many consumers try to borrow their way out of debt by acquiring more credit to pay for past debts.  The important lesson to learn is that when you use the equity in your home as collateral, you are essentially exchanging the value of your house for credit card debt relief.

Transfer your balances to a card with lower Interest rates

This assumes your credit is still fairly good and that you haven’t missed any payments.  Some cards offer very low interest rates for balance transfers.  Always read the fine print and be wary with some of the introductory offers that tend to raise the interest rates after a certain period of time.  Otherwise, you will be in the same situation paying exorbitant

interest rates for late payments.

Debt Counseling

Keep in mind that some of the Debt counseling and relief firms are subsidized by banks and credit card companies.  The advantage of these companies though, is that they can provide debt management that will result in the consumer paying off the full balance over a period of five years and can get the collection calls to stop.

These companies can also assist in removing late or missing payments that can appear on your credit report and affect your score.  The disadvantage of these firms is that, although they are nonprofit, their fees can be high.  Do some comparison shopping and obtain their written fee schedules before signing up for any of these programs.

Speak to your creditors

If you are in a financial bind, consider talking to your creditors.  Be honest and let them know you are having trouble paying off your debt.  Many of the companies will offer temporary deferment of payments or assist with payment options that can include lower interest rates.

Some may even go as far as reducing the principal balance.  The important thing is to let them know you are willing to pay your debt obligation but are experiencing some financial hardship at the current time.

To conclude, there are many ways consumers can fix bad credit.  The important thing is to be sincere and candid with your creditors and with yourself.  Sit down and access your situation with your spouse and family and devise a concrete plan to tackle and fix your credit.  Before long, you will be on the road back to credit recovery.


Category: Credit

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