My Review

Bad credit can happen to anyone. Especially in America where credit is used to buy everything from groceries to gas, having bad credit can be isolating and humiliating. But a number of things that can propel us towards bad credit.

Loss of employment, medical expenses, emergencies and family can all conspire to pile our debt higher. With interest, late fees and costs of more than limit, the debt can grow at an astronomical pace in a few weeks. Once you are in the hole, the exit may seem almost impossible.

Taking responsibility for bad debts

There are things you can do to begin to take charge of your bad debts. First and foremost, to have a realistic view of the damage. This means opening the bills that have piled up, unopened, and make a list of all outstanding totals. It can be sad, for sure, and probably is not on anybody’s “Top Ten List of Ways to Have Fun!” But being honest with yourself is the first step in taking control.

Once you open all bills and documented totals, contact one of the agencies credit information to obtain a copy of your credit report. The three major credit bureaus-statement - Experian, TransUnion and Equifax - are required by law to provide you with a free copy of your credit report once a year. Try not to be discouraged by what you see. You are on the road to make right!

Help Getting Out of Debt

Now that you have a better understanding of where you really stand, it is time to seek help. There are many companies that offer this “credit repair” services - for a fee. While it might be tempting to pay someone to make your financial difficulties, these services can not solve your problems.

A good rule? This great old standby: “If it seems too good to be true, it probably is.” Most of the services there that offer repair costs based on credit are more interested in separating you from your money separate you from your bad credit rating. Truly, there is no quick and easy way. Repair your credit will take time and effort.

But it is honest to goodness aid available! There are many organizations that offer real credit counseling and assistance for free or for a minimal cost, highly based on a sliding scale of what you can afford. These organizations will help you describe your fixed monthly expenses (rent or mortgage payments, insurance, etc.). They will build in the same extras that we all know are a part of life - things like gifts, clothing and recreation.

Once taken into account the realities of daily life, they help you determine how much of your income is really left to repay your debt. Depending on the situation, they can even communicate with your creditors for lower monthly payments organize, a temporary interruption to generate interest, a reduction of pay-off. All these things, you closer and closer to repair your credit.

The good news is that it is possible to recover from bad credit. In discussing the situation with honesty, and seeking credit counseling, you have taken the first step towards the acquisition of control over your finances - and your life.