You should think about how to use good money management skills to build your credit today. The first thing you should do is keep track of what you spend and make a strict budget that you can stick to. Bankruptcy and consolidating debt may add more costs to a situation that is already bad. You will have to deal with more costs, high interest rates, and payments that may not be enough to satisfy your creditors. This can be hard and make you worry.
The best thing to do is start putting money away. This can be done in many ways. First, try to save money by buying accounting and budgeting software. It might seem like just another cost, but it will help you in the long run. Part of this process will be keeping track of how much you spend and putting that information into a monthly budget plan. The software will help you by making the job much easier, but if you'd rather, you can set up a manual table with a piece of paper and a pen.
Next, write "Daily (or Weekly) Spending - Week of ____" at the top of your table. Make a list of everything you need to spend money on, including your savings, income, taxes, bank fees, food, rent, etc. When your bills are due each week, spend as much as you can on them first. This will leave you with just enough money to buy what you need for the next week. For example, if your phone bill is $114, your utility bill is $59, and your cell phone bill is $180, but you only get $300 a month, it's clear that you don't have enough money to pay for all of this. It's time to get rid of things that aren't important. Really, do you need two phones?
Don't go to the movies, save up for rentals instead, but you may have to do without this week. Tune in to the radio or turn on the TV.
You should also try to make a table with your estimated monthly payments and living costs. List your gross income, pensions, bonuses, child support, retirements, and any other deductions. Then, figure out what you can save money on and use it to pay off your debts. You will have to spend less on food, medicine, personal care, pets, holidays, and gifts. Are there any things you own that you really don't need? Don't you already have enough cars? Why not sell it and use the money to pay off more bills?
With these simple tips and good record keeping, you can slowly pay off your debt, fix your credit score and rating, and get your credit back on track. If the pay at your job isn't very good, you might want to look for one that pays more. In fact, getting a second part-time job on top of your full-time job can help you make more money. Always keep in mind that there is always a way to fix things and rebuild your credit.
