Credit Repair And Credit Card Debt

If your credit is not what it should be now is the time to take control of your financial life.  If you think you don’t need to have good credit because you already have your mortgage and a great car, think again.  Do you realize that if you have poor credit you will be paying much more for your car insurance premiums?  It does not matter if you have never had a traffic violation.  Bad credit translates to higher car insurance premiums.  Repairing bad credit will lead to more money in your pocket.

To get a handle on your credit the first thing you want to do is obtain a credit report from each of the three credit bureaus.  These bureaus are TransUnion, Experian and Equifax.  You can obtain a free credit from each of these bureaus annually through AnnualCreditReport.com.  If there are any errors on your credit report contact the credit bureau and have the error corrected immediately.

It will not be pleasant, but if you have debt that needs to be paid you need to tighten your financial belt.  No more fancy coffees.  Do your own housecleaning.  Skip expensive vacations.  Eat most meals at home and do your own cooking.  It is less expensive to prep your own food then to buy it already cleaned and cut for you.  Forget shopping for new clothing – wear what you have already.  It is up to you to get yourself out of your financial mess. If are willing to commit to the process, it is never too late.

If your problem is your credit card debt there are a few options you might want to consider.  Since using credit cards is so easy it is also easy to overspend and find yourself over your head in credit card debt.

Here are a few tips you might want to try to get your credit card debt under control and get yourself back on track:

  1. Credit Counseling Agencies are a good option if you are looking for help with your credit card debt. They can get better rates on the debt you owe since they deal directly with your creditors.  The way this works is that an arrangement is made for you to send the credit counseling agency a monthly amount they calculate to cover the new terms of your credit card arrangement plus a nominal amount for the credit counseling agency services.  The credit counseling agency then distributes your payment to the various creditors as needed.  This can not only be convenient it can help you avoid the necessity of obtaining a new loan.
  2. Consolidation loans may be a quick and easy way to pay off our credit card debt. However, unless you are a disciplined person you run the risk of having to repay a consolidation loan and running up your credit cards again so you now have both obligations.  Before you take on any new loan be sure you are making a well-informed decision.
  3. Balance transfers can be a good way to get your debt under control. Just be sure you know what the terms are before you use a balance transfer.  Once the time period for the initial rate offered for the balance transfer expires the balance owing for the transfer will revert to your original credit rate.  Calculate the numbers and be sure the balance transfer is going to be a benefit to you.

Digging yourself out of a financial hole is never easy or pleasant.  However, your life will be much brighter when your finances are in order.