If, like so many of us, you’ve overspent a little this Christmas and are now facing a substantial credit card bill this can feel quite daunting. Indeed, we all have good intentions as the year begins often making new resolutions such as making extra income or getting our credit history in better shape, yet the aftermath of the festive season can make this feel like such an uphill struggle we give up before we’ve even started.
If you’re looking to get your finances back on track, this New Year, then this quick summary offers some easy-to-follow advice on how to repair your credit history. It’s not rocket science, indeed learning about how to manage your money isn’t intellectually challenging – the challenge can be found more in the emotional side of money management, and this is where teaching your children about money at an early age can pay dividends in their development.
Of course, repairing your credit rating is a journey that can take some time; however, it’s entirely possible for anyone to turn their credit rating around regardless of their situation – even if you are facing bankruptcy. These three simple yet fundamental principles will help you take the first steps on getting back on track.
- WHERE ARE THINGS NOW
The first step is to check your credit report, and if your score is less than desirable then you are in the empowered position to take immediate action to start repairing your credit score. The first thing is to check for errors; some credit reports contain many errors due to simple administrative error or complex issues such as identity fraud; be sure to check there are no late payments incorrectly listed for any accounts and dispute any errors you do find with the credit bureau.
- GET BACK ON TRACK
If you have missed payments, then stop worrying about this – the damage is done – all you have control over is the current moment which will directly affect what happens next; and the best thing you can do moving forward is to ensure your bills are paid on time. If you’re struggling with keeping up with payments there are credit card debt relief solutions available that can help you get back on track.
The trick is to get back on track, by getting up to date with your bills, even if that involves negotiating payment terms so that no further damage is done to your credit file or obtaining a debt consolidation product – and then keeping up with subsequent payments. If you have a few red crosses on your file, then the remedy is to simply create more green ticks by getting things back on track and keeping up to date with payments; there is no remedy in burying your head and letting things spiral no matter how tempting it may feel.
In summary, find out exactly where things are now, make a plan to get things back on track, and then take steps to rebuild your credit score by maintaining good lines of credit – such as making purchases each month on credit, then clearing the balance at the end of each month. It can feel like a daunting uphill struggle, but if you take advantage of the help that’s available to you, in terms of practical support and tangible products (e.g. debt consolidation loans) repairing your credit and staying on top of your finances is a very viable and realistic prospect for most people.