When your debt outweighs your income and your ability to pay your creditors is limited or non existent, you may worry about your credit rating and want to repair it. While there is no magic wand to wave to dismiss your issues (bankruptcy is not a magical potion, and it totally tanks your credit score, too), you can get a bit of a leg up on the situation by doing the following.
The biggest hurdle that many face when they are in a financial crisis is trying to get the courage to get their heads out of the sand. It is so tempting to hide from the mess that you have gotten yourself into, but facing reality is the only way to clean up your credit mess and to work towards credit repair.
Get Copies of Your Credit Reports
The first step to repairing your credit is to know what the credit reporting agencies are saying about you. You should get your information from each of the three main reporting agencies each year. The information is free due to a federal act. These three agencies are Equifax, Experian, and Trans Union. To find out how to do this, you may go to: www.ftc.gov. You could also contact each directly by locating their telephone numbers via the internet or information and asking how to go about the attainment of your individual records.
Write Out Exactly What You Owe
Once you know who you owe and what your credit report looks like, get out your most recent bills. Take a look at what you owe each creditor specifically, and write it down. Compose a written record of each and every one of your debts, the total principal amount owed, and the interest rates and dates of payments necessary. If you find you cannot possibly cover all of this, call your creditors and negotiate a payment plan.
Correct the Facts
As you begin to pay your creditors on time and to stop incurring new debt, you will slowly be repairing your credit. If you want additional help from a professional, you can try using a credit repair specialist such as Sky Blue Credit This is important for your financial and emotional well-being. If you find an error on any of your credit reports, contact the credit reporting agency in writing. You may write a letter explaining the error, asking them to correct it, and explaining your position. They will attach it to your report or correct it eventually.