Friday, August 3, 2012

How To Repair Your Credit | Ways To Reduce Debt

Excessive debt and bad credit causes stress. Here are some ideas on how to repair your credit and reduce your debt.

1. Take positive action toward finances. Obtain a copy of your credit report from one or two credit bureaus. Go over it and begin the process of fixing mistakes.
2. Any marks on your credit report that are from outstanding debts need to be paid off as soon as possible (highest interest rates first).
3. Close out unneeded credit cards and credit accounts (safely dispose of credit cards after cutting them up). Liquidate available assets and valuable items and use that money to help pay down debt. Concentrate the rest of your money in two areas: essentials that are needed to live and money that you can afford to use to pay down debt (be ruthless).
4. Make sure your life is now establishing stability. Pay bills early. Continue living in the same home (make sure you can afford it). Keep your job and do all you can to expand it. Place yourself on a budget, and fully maintain your savings and checking accounts.
5. If debts are out of control, contact a credit-counseling firm (non-profit). Ask them to help you to work out a plan for consolidation and payback. They will work with you and your creditors to reduce your finance charges; this will save a lot of money over the next few years.
6. Never obtain the services of a company that will repair your credit through you taking on more loans.
7. When the debts are finally paid off, apply for two credit cards and pay the balance off early every month. Use the credit card wisely and responsibly and keep track of spending so you do not start to slide into the same whole you already found yourself in. Applying for a gas card, a department store card, or a secured card (this is like a debit card) is often easier than a national card.

By applying yourself to the above seven steps, you will get out of debt with vigor and set yourself up for good credit in the near future.

Emily Retherford is a professional freelance writer who specializes in writing about financial topics. In addition to writing on personal finance issues, she often writes about various types of financing, including personal loans.

More How To Repair Credit Articles

Source: http://www.waystoreducedebt.net/how-to-repair-your-credit/

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