What Poor Credit is and How it Develops
After watching all of what is going on, I am disturbed that not more has been said about fixing your credit. My passion in life is to help families live out their “American Dream”, and be stable in life and in their finances. This cannot happen when one has poor credit, and I believe that the demise of our country is the financial status of our country today. Not only is our government in debt, but it’s a rash, spreading to every family and business. This has to end, and it has to end now.
It has been said, that the only way to get back up is to hit rock bottom. I am a true believer now of this phrase, because I see our country hitting rock bottom before we can recover. This is sad, but this is the truth. So, in order to prepare those who are struggling, and to try to reach out to those who need answers, I have some viable solutions to aid you in turning your poor credit into better credit. It won’t happen overnight, but the time to begin is now. Making some changes won’t have anything to do with whether or not you are working, or what the government is doing so here are some things that you can do on your own right now.
To get rid of poor credit, you need to make one small investment that brings great rewards. Get copies of your credit report from all three major credit reporting bureaus. This will help you to look at the bigger picture so that you can see what you have open, what needs to be paid, cancelled or even completely removed. You can assess the oldest ones first, making any collection companies are contacted and your options have been reviewed. It’s best to contact them and make arrangements, than it is to completely ignore them. Explain your situation, and don’t back down. When they demand money, tell them the truth and see if you can come up with a viable settlement offer. It’s best to pay something than not to pay it at all. It is also wiser to get it settled than to have it go on your credit for ten years unpaid or ending up as a judgment against you.
If there is a judgment, attempt to pay that first. These are typically only going to be accepted as a paid in full arrangement, but you can certainly try. It usually depends on what they are. Try to make payment arrangements on the smallest debts first, because you can really backfire on your plan when you promise too much too soon. Again be honest; you already have poor credit, so don’t stress yourself out when things aren’t going to change before tomorrow. Pace yourself, focusing on one account at a time.
If you are in a mortgage, pay that first because this is the most critical account you have and has the largest influence on your credit. Then, you need to be sure to make your car payment as this is considered an installment loan and is your second priority. Think about it, if you don’t make your payments, they will repossess your vehicle. Once that happens, you won’t have a way to get to a job, to make money to pay your bills. Try to think in terms of your responsibility to you and your family first, and this can be stressful when there is job loss or a reduction in your pay. Remember, you can only do what you can do. Once something is out of your hands, there is no need to chase it down. Communication with your creditors is key, and you will find that some are more likely to listen than others, but if need be always ask to speak with a supervisor and see if that helps.