DIY Credit Repair

In DIY Credit Repair of Advisor (July 15, 2009 4:38 am)

How to Do Credit Repair On Your Own

If you want to repair your bad credit, it is not always necessary that you have to engage a costly credit repair service. Actually, you are able to do it on your own and that too without cost. It would not be a simple task but it is a much better option than empty promises made by many credit repair agencies. To eliminate debt, you require patience. Same applies for credit repair.

You should not enter into a contract with a costly credit repair service. Please don’t purchase any software or books to assist you in restoring your credit. You should rather concentrate on three free and easy steps to eliminate your bad credit.

First of all, find the root cause to your problems. Go through your credit report. You’re entitled to get a credit report without cost from the three principal credit bureaus per year. In the recent past, if you have been refused for credit, you should also request for a report at that point. Your credit report would provide you a comprehensive idea about your credit condition. However, you must also receive the latest statements from all your creditors. Not only is it important to get the contact details but also to get the updated information about your balance, payments as well as interest rates.

As soon as you have reviewed your condition, you should move towards the second step - clear your holder of credit cards. Destroy them and close the accounts. Always make sure not to sign up for a new card till the time your credit is improved once again. If you go on racking up debt, then your problems would persist.

The last step to fix your bad credit and get rid of your credit card debt would involve a lot of hard work and hassle. Now you have to formulate a debt reduction strategy. The initial measure is to cease making payments for your credit cards. Earmark the money you could have utilized for making those payments for one or two months. When the credit card providers begin making calls about your overdue payments, be courteous but clarify them that you’re not able to pay the bill at this point, however, you’re designing a plan to pay down your debts. Request them that they don’t call you till next month. Making minimum payments would not reduce your debts by any means and it is wise to go for consolidation. When you have adequate funds to pay around 33% of any of your bills (supposing one or two months have gone by), communicate with the company and make the one-third payment. Some companies might be willing to accept this settlement while others might negotiate for some time. There is high probability that by consolidation of your payments and remaining disciplined, majority of your creditors would be ready to settle your debts for 50% or even less.

By following these three easy steps, you can fix your own credit and get rid of your credit card debts without external assistance. Just go ahead and do it.

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