Repair Credit by Observation
Repairing your credit takes observation on your part.
We often get two types of
bills in the mail. Bills that are past due and bills that are up to date. The
fact is ignoring your bills is only delaying and it does not help repair your
credit. If you have current bills and there are no overdue charges be sure to
take care of these bills first, since by paying this will keep you out of the
credit-bureaus. It is determining that you have a stable financial situation in
order to become debt free.
If your job doesn't pay enough to make ends meet, you
might want to find a job that pays better wages. This can help you get out of
debt faster. Once you get your current bills taking care of you next want to
focus on your late bills.
If you haven't reached the credit-bureau yet, take
care of the bill immediately. Working closely with the law, I can tell you that
if you make even a small payment toward a bill it can save you from hitting the
credit-bureau. The fact is, if you are making any type of effort to payoff a
bill it could keep you out of court. The most determining step to repairing credit
is staying up to date on your bills if at all possible.
If you feel that you
can't make a payment it is wise to make contact with the creditor letting them
know there will be a delay on payment. Creditors often prefer that you call them
to negotiate a payment scheme and sometimes creditors will even lower your
monthly payments, or even your bill. The best solution then is observing, and
making an effort to repair your credit.
Most of us have house payments, car loans, credit-cards, and other types of
loans, including utilities. There are two types of debts that consume our money,
so to understand these debts is determining to repairing your credit. Secured
debts are any debts that have collateral attached. In other words your Mortgage
is a secured loan that if you miss payment you might be living in the streets.
Car loans are a guaranteed way of getting back on your feet again if you miss a
couple of payments.
Therefore, car loans are secured, and it is your
responsibility to make payments. Some Department Store Credit Cards are secured,
in that they ask you to put up collateral if you miss payments on the
merchandise purchased. Unsecured debts are utilities, rent, personal loans from
family or friends, student loans, most major credit-cards, and so on. This means
that it is more determining to payoff secure loans vs. un secured loans. Secured
loans again are house payments, car payments and so on. You have more to loose
by ignoring secured loans that what you have to loose ignoring un secured debts.
If you have a Mortgage and feel that you can't make ends meet, you might want to
check into some of the options available from your lenders. There might be a
second home loan available that offers cash back or other great commodities that
can help you to become debt free and repair your credit. Don't wait til it is
too late. If you are seeing a bad outlook but it isn't so out of hand that you
lost complete control, get up and take your control back. There are mortgages
available that offer overpayments and underpayments.
This means you can over pay
one month on your loan and underpay on your loan the follow month. Some of the
loans even offer a vacation pay. If you don't want to go on vacation you can use
the money to pay your mortgage. These types of loans can often be paid sooner
than other types of loans. If you have credit-cards, it might be wise to apply
for a credit-card that permits you to payoff other cards.
There is always a
solution to getting clear from debt. Again, the most determining tool for getting out
of debt is to keep close watch over your bills, payoff any secure bill first,
and work through each bill as you go.