Falling into debt is something that no one wants, but if this happens to you, be prepared to work hard to repair your credit. If you have outstanding bills or just concerned about your credit knowing how to even begin repairing it may seem overwhelming. However, there are many options that are available to help you. For those who may be struggling it can definitely take a toll on your health causing serious things such as depression, headaches and adding stress to an already devastating situation.
The best thing you can do is to take a deep breath and budget your income and lifestyle. You will need to create a list of how much you owe and how much you make. The first types of bills you need to try to pay off are the ones that are low and can be paid off all at once. Also you need to try to pay as much as possible on debts that have high interest rates such as personal loans, credit cards and school loans. If you are able to pay more than the minimum always do so because its less you have to pay overall.
If you have filed bankruptcy it can take as long as ten years for your record to clear so if there are other outstanding debts now is the time to take care of them. You will want to order a complete credit report in order to make sure that everything that’s listed against you is correct. If there are false claims you will need to file a dispute to have it removed. There are a few places online that offer free credit reports once a year so take advantage of that. Use one for the initial check and once you have repaired a few debts use another free one to check the progress on your report.
One thing that many people try to do is hire professionals to clear their debt and to repair their credit but it’s usually a waste of your time and money. If you have bills paid off and are now in need of repairing the damage that your past has caused it would be good to avoid any type of large purchases that you cannot afford to pay cash for.
Opening a new credit card that has only a low balance may help to improve your credit rating. The overall best way to repair your credit is to pay as much as possible towards your debts until they are all paid in full. If you do choose to open a credit card account be sure not to run out and place a lot of charges on it just because you can. This will make your debt shoot up and add more on top of what you are already trying to pay off. Look for ways to get through this tough time without needing to add more stress on your family. If you can go get by avoid opening any new credit cards or things that may harm your credit.