You found yourself in a very bad financial situation. You may feel emotional, hopeless, guilty or all of them. You are afraid of hitting rock bottom. Before that happens, you need to take the necessary steps to get your financial life in order. You need to look long and hard at your credit use and spending habits. It doesn’t mean a “debt consolidation,” program or a home equity loan .The word is make a credit repair plan.
Your credit repair plan will start by collecting all your credit reports, bill payment statements, and credit card statements, mortgage and insurance records. Locate debt worksheets on the internet to help you work. All of these steps will be taking place at the same time.
Remember that there are 3 major credit reporting bureaus and you need all 3 reports. You must make sure that the reports are accurately reflecting your credit profile. Be like a bulldog and hang on. This will probably take some written communications between you and the agencies.
As part of your credit repair plan, record in black and white all of your financial obligations. This will affect the money management part of the plan. Do list all credit cards in order of highest to lowest interest rates. Also include the monthly minimum payment required for each card.
Figure out your disposable income. This is the amount of your salary that goes for necessities such as mortgage, car loans, credit card payments, utilities, other loan payments. When you subtract this amount from your salary, you will have your discretionary income. This is the income you can devote to reducing debt.
Planning to repair your credit involves determining which credit cards and loans you can pay down in order. For the first on the list, pay as much over minimum as possible. Pay minimum on the others. When the first is completed, apply that payment to the next in line and so on. This will be an ongoing money management strategy for a long time.
There will be some personal discomfort as you tackle this project. There will need to be changes in your lifestyle. You will need to cease purchasing that is not essential. You will need to stop charging, pay bills on time, minimize travel and entertainment, dine more at home and perhaps give up other indulgences.
The bottom line of the situation is that you are responsible for creating the credit repair plan. There is no credit angel. You need to fix it and use smart money management techniques to maintain your repairs.
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The author of http://www.your-new-payday-loan.com has made an excellent point. There are a lot of criticism about payday lending, but critics of payday loans do not realize that these loans are borrowed by people that have less than perfect credit and do not have any other alternatives. Big banks are not willing to take the same risks as payday lenders do.