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| Do it yourself Credit Repair |
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| Written by Rob Kosberg |
| Thursday, 05 February 2009 10:47 |
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You have reached the point in your life that you realize that you need to make some drastic changes in how you manage your spending and credit before you reach the point of no return. You do not want to rush into "debt consolidation" or use a home equity loan. You need to have a plan that is worked out very carefully. Round up all credit reports, bill payment and credit card records, loan and mortgage records. You can find debt worksheets on line that will assist with making your plan. Most likely sections of your planning will be occurring 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. Put in writing all of your financial obligations. You will be particularly concerned with credit cards and perhaps small loans. List the cards with highest to lowest interest rates in order, and the minimum payment for each card. After this, you are going to look at the picture of "disposable income" and "discretionary income." What are these? You have a certain amount of your salary that pays for your necessary expenses such as loans, utilities, mortgages, insurances, and credit cards. This is disposable income. Subtract the total from salary and this is discretionary income which is the amount you have to assign to reducing debt. Determine 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. To immerse yourself in this change of pattern of handling money, you need commitment and will not feel comfortable for awhile. Lifestyle changes are needed. You will need to cease unnecessary spending, buy only essentials, avoid travel, eat at home, pay bills on time and stop charging. Your current situation was not something that "happened "to you. You are responsible for creating it and you are responsible for repairing it. It wasn't created overnight. It won't be fixed overnight. About the Author: With never before seen challenges in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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