Credit Self Help

Are you facing problems with your credit? Do you know that you need to do
some serious credit repair?

I hope you read this article before you sign up for an expensive program or
spend money on expensive books or information packages.

First of all, it is important to give yourself a pat on the back for simply
reading this article in the first place. The first step to finding a
solution is admitting that you have a problem. A good many people simply get
themselves deeper and deeper into trouble and debt because they do not want
to admit they have a problem. Or worse, they know they have a problem but do
not want to let those closest to them know that the problem is serious.

Second, you may take comfort in knowing that you are not alone.
Credit problems are a growing epidemic across the globe today.
Banks make it all too easy to obtain credit and to quickly accumulate debt
and most people today are not really taught how to manage their money. Add
to this a high-consumption society obsessed with various status symbols from
clothing to cars and you have a sure-fire recipe for disaster.

Finally, and most important, you can repair your damaged credit and you can
do it yourself for free.

The first and most important step is to collect all your information in one
place. This includes how much you owe on each credit card and the details
such as interest rate and minimum payment.

Now, call each of these credit card companies and close the account. Then
cut up each card. This is important. First, you are eliminating your ability
to rack up more debt and forcing yourself to face up to the reality of
living within your means.
But you are also taking the first step to handling your current situation.
It is better on your credit report if you have closed the account while
still in good standing.

Now comes the more difficult and challenging period. Handling the money you
owe itself. For the first month do not make any credit card payments. Not
even minimum balances. If you have money you planned for this purpose then
set that money aside.
Before you can begin addressing your debt you will also need to make
arrangements for you daily life. You need to make a realistic budget that
fits your income and then live within it.
This is how you will avoid accumulating more debt in the future.

Once you have a good handle on your situation--you know your income, you
know your budget, you know your debt--it is time to look at how you can
solve the problem. You may find that you want to work with a law firm or
agency, but my personal experience is that you are better off making that
your last resort rather than your first. They can be very expensive and
usually charge you based on a percentage of your debt -- so the more you can
do to cut down that debt the more money you will save.

So what can you do yourself? A lot! Perhaps you can save one-third to
one-half of your debt within a few months or acquire that amount through a
home equity loan or some another financial maneuvering. Once you have some
money on hand and you have let your credit card payments lapse for at least
a month it is time to get to work. Call the company and tell them that you
are in financial difficulties. Think up all your sad stories ahead of time
so you have them handy and clear in your mind.
Then tell the company that you are looking at various options including
bankruptcy and working with a program but would really like to do this
yourself (believe me, most companies would rather deal with you than a
lawyer or professional negotiator). Then offer to pay one-third of what you
owe. Some companies may work with you over the next months (while you are
hopefully saving still more money) and eventually settle for an amount much
less than what you originally owed. Others may offer a special program.
There may also be a few companies that will not work with you in any way. If
you run into those then you may want to call in professional help or just
simply pay them off.

It will not be easy and it will likely be stressful, but in the end you can
save yourself a whole lot of money and your credit will be looking good
again. You can repair your credit yourself and give you and your family a
bright future.

About The Author: Deanna Mascle shares more advice in her blog Credit Self
Help at http://answersaboutcredit.com where you can also download the free
ebook "What To Do When Your Credit Goes Bad"