Search
  • Sly Tyler

Bad Credit Repair-- Defining the Problem

Before you begin the process of repairing your credit, you first need to ask yourself what’s causing your credit problems? Poor credit is nothing to be ashamed of. It’s far more common than you may realize. Often it may not even be your fault.

Imagine that you invest for five years and save enough money to start a small sign company. In the middle of the summer someone brakes into your business office and steals all your computers and expensive sign-making equipment. Unfortunately, you did not have any insurance to cover what was stolen, so you take out loans to replace the items, so you can stay in business. It takes you years to recover financially from that, leaving you with bad credit.

On the other hand, some of us deliberately make poor credit decisions. After we get our first card, we suddenly become flooded with offers for more credit, and in our situations feel as if we are obligated to take them so we can “Just catch up on bills” or whatever the case may be. Some of us use credit to show everyone that we are successful or even feel like a credit score is a measure of how successful we are.

Once we take on more credit then we can handle we began the juggling game of robbing Peter to pay Paul, which only gets us deeper in debt. After we have accumulated more than we can handle in loans and debt, we look to take out a consolidation loan to pay off all the cards and loans and put the debts in one big payment. One thing to watch out for with consolidation loans is putting yourself in much deeper debt. It’s easy for us to get consolidation loans and see our credit card balances at a zero balance and began to use them without realizing that we still haven’t paid off the previous balance that was consolidated. This can cause us to have no other choice but to declare bankruptcy because the debt becomes unbearable.

Take a good look at what is going on in your life. What caused your credit problems? Are you in debt because of circumstances beyond your control or is it a chronic situation? Are you getting deeper into debt or are you solving the problem? There’s no point in trying to repair your credit if in the end you are going to continue doing what caused the issue. There is no quick fix for credit problems, but with a little patience and determination, you can not only get it under control, but you can end up with great credit and the feeling of success and self-worth that goes along with it. Take the first step and set a credit building consolation to determine how to get debt free today!



12 views

2018 ©Fix My Finance LLC. All Rights Reserved

  • Facebook Social Icon
  • LinkedIn Social Icon