|Posted by Percy A Lowe on March 1, 2013 at 12:35 PM|
Just imagine a flood sweeping through your town, and destroying everything in its path. When the flood finally subsides, the people of the town find that everything is destroyed. Houses are flooded out, and things have been moved around the city. The people of the town are hopeless and feel everything has lost.
Many people get that same feeling when it comes to their credit. Much like the storm, debts that go to collections can cause a person's credit to be destroyed. Not only is your credit ruined, you may well be listed within ChexSystems. And it is entirely logical to assume that you are also listed in the Early Warning System (EWS), a fraud detection, and credit-reporting database. Your whole world may feel like you're experiencing a financial disaster .
When it comes to clearing your credit, the concept is the same. After a storm, people begin to clean, and the same action is necessary after your credit has been blemished. There is hope for people who have been hit by this whirlwind. The road is long, and it will take much dedication and perseverance. For you and the company you choose to help get back on track. But, you must choose a company that is transparent to your needs and understand your situation.
The most important word in cleaning up one's credit is self-restraint. Learning how to be disciplined is something that many with blemished credit have failed to do. In order to determine where your money is being spent, you need to create a budget. Just as well as a monthly expense sheet to help build your credit score up 100 points. Then learn to leverage your credit score against the model they uses to determine your credit score. Yes, you can leverage your credit score and yes, I know you never heard of that term before. That is because I am the only person teaching this the right way.
A budget can be difficult to create, but once you calculate your income versus your obligations, it is quite easy to figure out how much you can actually spend. Now, whether you adhere to this number is another story altogether. If you struggle with self-restraint, you will have “Unlocking Financial Success” to help you manage your budget.
Next, you will need to get into the rebuilding-credit mindset. Much like the analogy of the storm, clean up will take some time. Yes, you can do this yourself but remember do you do your own dental work. If not then don’t try to do this alone if you don’t know what you are doing, because this will almost always lead to failure. That will become a bigger storm and more costly to fix from someone who is experience in doing this type of work. Tackle one debt at a time, paying it off and moving on to the next. There is no need to contact all of your creditors at the same time. Put together a solid game plan that you can see before calling your creditors that will work. So, you want set off a barrage of harassing phone calls or threatening letters if the debt has been sold to a collection agency. And not know the proper way to talk to a debt collector.
Categories: Credit Education and Restoration