Repairing Credit Portfolio for a Healthy Credit Score
Explore the available options to repairing credit portfolio and achieve a healthy credit score. Avoid future finance struggles and be seen as financially responsible by lenders. Learn more now.
CREDIT REPAIR
Do You Know?
You can determine a financial emergency once you experience a situation that can render you penniless, homeless, or without any important property. You should differentiate this kind of emergency from a threatening phone call and an email or letter from a bill collector.
When experiencing such an emergency, it is crucial to act immediately and start by contacting the creditor.
Doing so enables you to work out a temporary solution, which can help you keep your property. However, it does not always work and if so, getting in touch with your lawyer to negotiate with the creditor is helpful.
The common misconception about debt problems is "the less you know, the less it hurts".
It is crucial to learn how to face your debt problems and you must be able to do this since rebuilding and repairing the credit will not take place when you do not know exactly where your money goes or where it must go instead.
Although it is not harmful to overestimate your debt, it is always beneficial to know how much money you really owe. You can do this by taking a look at the bills you have received. In case you have thrown out your bills without even opening them, you can still call customer service and inquire about the bills.
Several creditors use automated telephone systems, which can provide a balance and information regarding the payments automatically.
Additionally, information about your account might also be available on your creditor's Web sites. After acquiring the necessary details, sum it all up, especially those past due installment bills and your monthly obligations.
Options Available For Your Debts
There are several options available when dealing with debts. One is to do nothing. This option is probably the most popular approach used by those who are deeply in debt. Most often, these people have very little income and property and do not normally expect any change in their lifestyle. If you do not anticipate any steady income soon, still you can't consider this option as it will ruin your Credit Score even further. Reach out to your creditors and inform them of your situation for record-keeping and always be honest.
However, if reaching out to your creditors does not help, you can find money to pay your debts. You can do this by, first, selling a major asset, like a car or a house. This can be a good choice if you can no longer afford your car or house payments. Instead of waiting for a repossession or foreclosure to happen, selling a property is always better.
The proceeds you gain from the sales can help lessen your debt and enable you to pay off anything you still owe. More so, you should remember to pay off the liens (rights of retention) placed by the creditors and use anything that is left to aid you in paying your other debts. However, before taking this step, make sure that you have already come up with an alternative for your housing or transportation needs.
Another way, that can help you pay off your debts, is to cut your expenses. Not only will this eventually aid you in the payment but also in negotiating with your creditors. Try to shrink the cost of your food by buying from factory shops, buying generic brands, buying when there is a sale, and or shopping at outlets with discounts (you may also consider bulk buying on specials as well).
Your Last Option
This should be your very last option after you have tried everything and still weren't able to come up with funds to pay your debt.
If you have a retirement fund account that you have been contributing towards for some time and haven't withdrawn from, reach out to your financial institution and find out if you can be able to do so.
This can help you pay debts by withdrawing money from them before retirement. However, since you may need to pay a penalty or taxes, this should only serve as your last resort.
Recommendations
A must-read before applying for credit: To understand how you can build wealth the easy way from transitioning to business credit from personal credit here.
Should you be interested in DIY, then you might need to check out Credit Repair Magic
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