Repairing your credit is a slow, time consuming project with fantastic rewards. Start by paying all current bills on time. Try to bring current all bills that are late. Start with the smallest bill and work your way up to the harder more expensive bills. We recommend a major cut back in consumer spending until the credit cards and monthly bills are under control.
Gather all your monthly bills
Begin by making a list of current credit card balances, monthly payments and interest rates charged by each creditor. Next develop a plan for reducing the number of bills. Maybe you can consolidate a few cards onto cards with higher credit limits. The goal is to eliminate consumer debt.
It took a lot of time to create the current credit problem that you are facing and it is going to take time to repair your credit standing.
Write down on paper your current financial situation
Start by itemizing your assets and your debts. Paper and pencils are cheap. Make lists and adjust the information as you make progress. Listing all you liquid and non liquid assets is important. You need to know what you have to help reduce your debt. Maybe you can sell some items that you no longer need to pay down your debt. Make a list of all sources of income and potential income. Can you borrow money from family, friends, or bank to fix problem?
Use your phone
Communication with your credit card companies and lenders is your main priority. Let them know now that you are facing a temporary problem with cash flow and you are working on correcting the problem. Let them know that they will get paid as soon as you can pay them.
Ask for options, politely
Ask for programs that allow deferring payments or workout plans that buy you time. Postpone filing for bankruptcy as long as you can. If you are at that point, your credit is already messed up. Bankruptcy attorneys do not work for free. The money that you are paying them would go a long way towards debt elimination. There are many times that their services are very necessary.