Making an Action Plan!

It can be disheartening to have bad credit follow you and hard to know where to start to get back on track. Unfortunately there is no quick repair.

Since your credit woes are likely caused by years of bad debt management, over spending and not paying bills on time or at all the change can be very difficult. Having a plan is a good start. 

Following a budget may seem daunting but it is the most important step. If you cannot plan a realistic budget and stick to it you have no hope of catching up on those bills you are behind on.

It like requires some major changes to the way you have been spending and could mean some hard adjustments to your lifestyle. Make a list that has three categories:

Income from all sources, fixed expenses like those that are always the same like mortgage and vehicle payments, varying expenses including those that change monthly like clothing and recreation.

With some careful monitoring you will see what areas are eating away your budget and which are being neglected. 

A good option is to contact a credit counselor and have them sit down with you to draw up a plan. Many credit counseling agencies are non-profit and can be an affordable option or in some cases even free.

Do your homework and find a counselor that is affordable and running a legitimate business before handing over your personal information or financial woes. 

A credit counselor knows all of the ins and outs about finances, budgets, understanding credit reports and how the laws work to protect you. They may offer free workshops and courses to teach you about debt management and financial responsibility.

With a little of their expert guidance and your time you could be well on your way to being debt free and correcting the damage done by money mismanagement.  

Another important thing that a credit counselor can help you with is understanding your options. Making the decision to claim or not claim bankruptcy is a difficult one and it is important that you understand all of the facts.

Other options like consolidations, disputing claims and contacting creditors can have complications that your credit counselor can inform you of.  

It is also important that you do not fall victim to companies claiming that they can fix your credit or quickly change your score. Any reputable agency knows that credit repair takes a little time if done through legal channels.

You could easily lose more money to a company making these inaccurate claims and be turning over your personal financial information into dangerous hands.

Undisputed negative marks on your report like delinquent payments or those gone to collections stay on your report for seven years, bankruptcy for ten.

On the other hand positive accounts remain on the report for 10 years. Knowing where you stand is a good start to your credit repair, and it can begin the process of getting you back on your feet and out of the debt spiral.