STEPS TO TAKE TO REBUILD YOUR CREDIT
1. Assess the damage that has been done nad total your debt amount.
2. Attack your debt today, put away your credit cards, keeping the older, positive accounts open and current. Do not let it sit without any activity for more than 3 months. If your debts are only in collections, communicate with your creditors to reduce your payments or lower the interest rate and or fees.
3. Apply for a low-interest rate credit card (if this is possible) and transfer your balances. Be careful to read all fine print thoroughly before signing.
4. Consider doing a loan consolidation, if you are a homeowner. This will be a second mortgage on your property which will allow you to consolidate your debts into one payment.
5. Seek the help from a Professional Credit Counselor, Financial Advisor, or Debt Consolidation Company to help you negotiate payments with the creditors you owe debts to. Do your due diligence and carefully review all companies and all paperwork before you sign anything!
6. If you are more than $50,000 in debt, Bankruptcy may be the option for you. Let this be your last option to consider.
7. Make a Master Budget Plan to keep track of your spending and your bills. You can also create a simple Budget Monthly Plan on Microsoft Excel (or other free software).
8. Eliminate items you can do without or get your monthly payments lowered or eliminated.
Re-Establishing Credit
As soon as you sign up for credit repair or start your own credit repair, you must start adding new credit to your credit report by applying for a credit card (either secured or unsecured), in store credit such as a jewelry store, furniture store, rental store, car loan (new or used), a credit card through a clothing or electronic department, or a credit card through a bank or credit union (whether it may be secured or unsecured) or a small loan from the bank.
