Before you start fixing your credit, you need to figure out what went wrong. It's not embarrassing to have bad credit. It happens a lot more than you might think. Like Gerald and Lisa, you might not even be to blame.
They saved money for five years and used all of it to start a small sign business. Then, one summer, someone broke into their business office and stole all of the computers and expensive sign-making equipment. Unf...
Before you start fixing your credit, you need to figure out what went wrong. It's not embarrassing to have bad credit. It happens a lot more than you might think. Like Gerald and Lisa, you might not even be to blame.
They saved money for five years and used all of it to start a small sign business. Then, one summer, someone broke into their business office and stole all of the computers and expensive sign-making equipment. They didn't have insurance to cover the items that were stolen, so they had to get loans to buy new ones so they could keep their business going. It took them years to get their money back on track, which hurt their credit.
On the other hand, some people, like Paul, make bad decisions about credit. Shortly after Paul graduated from college and got his first credit card, he was suddenly flooded with offers for more credit, which he took right away. He wanted to show everyone that his new job as a sales manager was going well, so he used up all of his credit cards.
Then he started "robbing Peter to pay Paul," which only made him more and more broke. He got a consolidation loan to pay off all the cards and make one big payment, but the empty cards were too tempting, and he used them all again. He finally had to file for bankruptcy because he had so much debt that he would never be able to pay it back.
So, look closely at what's happening in your life. Why do you have trouble with your credit? Are you in debt because of things you can't change, or has it been going on for a long time? Are you still getting more and more in debt, or are you taking care of the problem? It doesn't make sense to fix your credit if you're just going to lose it again.
If you find yourself getting too deep in debt, there are a few things you can do right away to help, before things get out of hand.
- Contact your credit card companies and ask if they can help you lower your monthly payments.
- Talk to a non-profit credit counseling service, like Consumer Credit Counseling Service. They offer help with budgeting, education, getting out of debt, and finding a place to live. They have offices in a lot of places in the United States.
Be wary of "for-profit" organizations that offer to help you get a loan to pay off your debt. Often, they cost a lot. Why go to them when a well-known non-profit like Consumer Credit Counseling Service can help you for free and in a reliable way?
There is no quick fix for credit problems, but with a little patience and determination, you can not only get it under control, but you can also end up with great credit and the feelings of success and self-worth that come with it. So take the first step and decide to get out of debt right now!
