Credit Repair Debt Consolidation In Four Simple Steps
Many people find themselves steeped in debt at one point or another. If you are able to keep up with the payments everything will be fine. However, if you fail to keep abreast with your financial commitments, you would find yourself slipping into the category of people with bad credit records.
Bad credit would mean that you are seen as a high risk prospect by all financial institutions and banks and that would mean higher rates of interest, tough terms and conditions or worse, inability to qualify for a loan.
Financial Freedom With Credit Repair Debt Consolidation
Hopefully, you would learn from the past mistakes and you would be ready to move on. You could once again be free from worries with the help of credit repair debt consolidation tactics that never fail. Your aim now should be to rapidly raise your credit score. ‘Rapidly' here would mean close to one year - if you stick to a very serious plan of action.
Step no. 1 - request for a free copy of your credit record. There are at least three organizations out there from where you get one such report per year free. These organizations are - TransUnion, Experian and Equifax. Ask for one report every four months and you will be able to closely monitor the position of your records.
Go through the records with a fine-tooth comb and contest in writing anything that does not seem accurate. If within 30 days from the arrival of your request the credit issuing company does not prove the entry right, this would be stricken off from your record and hence your score would rise. This is a very important step in your credit repair debt consolidation program.
Step no. 2 - prioritize and pay off your debts at the earliest. A good credit repair debt consolidation plan would aim at freeing you from debt. You need to check which ones among your debts are causing you the highest financial distress.
For example, your credit card charges you about 3% per month compounded interest, while other loans would have an 18% interest rate per year. It would definitely make better sense to clear the credit card bills first, as this is literally destroying your credit standing in the market. You could make smaller payments for all other loans outstanding, but focus in clearing the high-interest loans first.
Step no. 3 - Regularize your payment schedules - pay on time. Paying before the due date is a very important criteria for your credit score. You need to pay all the outstanding bills on time, every month for at least one year before you are once again considered ‘safe' by the financial institutions.
Step no 4 - get a secured credit card which would not only raise your overall credit score but also fast forward your credit repair debt consolidation efforts.
Be committed to the credit repair debt consolidation plan and you will find that within a short span of time you are once again debt free. Freedom is within your reach if you want to have it.
