29 Jan 10 Last Resort Debt Solutions

If you find yourself very deep in debt, you only have two choices to resolve the problem: file for bankruptcy, or try and consolidate the debt. Filing for bankruptcy is a last resort, as that road will only lead you to more heartache and the scar you make on your credit will be almost impossible to heal. But some debts are too large to finance and successfully pay back. You have to weigh both options to see whether or not your debt is manageable, or if hitting bottom to start over is the best option.

The first step you should take is assessing your credit report. This will give you an accurate record of how badly your debt has damaged your credit score. You’ll also give an idea of how widely your debts span, and where exactly you owe money. The typical credit score is in the high 500-600s, anything slightly lower is manageable, but if you’re in the 300s that’s a severe problem. 300 is basically as low as it gets, at this stage it’s time to rethink your strategies.

Try to examine your monthly finances and see what you can cut to increase how much money you can pay out to eliminate your debt. Try and find as much as possible, so that you can live relatively comfortable, but also putting as much into the debts as possible. Paying off interest is a pain, and the worst part of debt, so you have to make sure you can pay well over the interest amounts, otherwise you’re just maintaining your debt.

If you find that consolidation won’t provide enough relief from interest rates, to pay off the debt within a number of years, bankruptcy might be your only option. Bankruptcy should always be a last resort, but if you’re so deep in debt there’s no way to dig yourself out, it’s almost a necessity. Your credit will be severely damaged, but any damage can be repaired as long as you don’t make the same mistakes the second time around.

Tags: 300s, Accurate Record, Consolidate Debt, Consolidation, Credit Report, Credit Score, Debt Solutions, Debts, Eliminate Debt, Filing Bankruptcy, Filing For Bankruptcy, Heartache, Hitting Bottom, How Much Money, Interest Rates, Last Resort, Scar, Second Time, Two Choices

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20 Oct 09 Rebuilding Your Credit After Bankruptcy

Filing for bankruptcy pretty well demolishes your credit rating. You could end up feeling the effects of bankruptcy for years, which can see you denied for loans, credit cards, and even jobs. The damage done can leave you feeling like you just don’t have anywhere to turn to repair that credit. But that isn’t true. Your credit can be repaired no matter how much damage has been done, it just takes time and a lot of conscious effort on your part.

You’re essentially starting over in this situation, so you have to adopt the tactics that someone with no credit would employ. That means setting up a new steady bank account, and getting a credit card. Of course the credit card one will be especially difficult, considering the low credit rating that you will have. But there are plenty of banks that offer credit cards that require security deposits, that also have low limits. These aren’t very useful when it comes to paying a lot of bills, but are fantastic quick ways to improve your credit.

By keeping that bank account open, and never overdrawing you slowly improve your credit. The credit card will also help a lot, as long as you don’t overspend, and always pay more than the minimum on your monthly bill on time.

You also have to make sure that you have payments to make that will be reported to the three major credit bureaus. If those big bills like a mortgage or a car loan aren’t being reported, then they aren’t helping your credit at all. So do what you can to ensure all the major stuff is reported, as that will help you repair your credit faster.

Finally, take advantage of the free credit reports you have available to you once a year. Make sure to get them, and go over them very carefully. Clear up the issues and formulate a strategy to ensure your credit score is as high as possible. As long as you keep diligently working towards a better score, you’ll always achieve that goal.

Tags: Bankruptcy Filing, Banks, Car Loan, Conscious Effort, Credit After Bankruptcy, Credit Card, Credit Cards, Credit Rating, Credit Score, Filing Bankruptcy, Filing For Bankruptcy, Free Credit Reports, Improve Credit, Jobs, Loans, Major Credit Bureaus, Mortgage, Rebuilding Your Credit, Security Deposits, Three Major Credit Bureaus

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29 Jan 10 Last Resort Debt Solutions

20 Oct 09 Rebuilding Your Credit After Bankruptcy

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