Credit Repair

In my business I get a lot of calls from people who just cannot qualify for a home loan. With rising gas prices, consumer prices, utility prices and even rent prices, Now is a great time to address the issue.

First and foremost, do NOT avoid your creditors. They are in the business of making money, so when you have a hardship and cannot pay them, they will listen and work with you. Here is what worked for one of my clients, of course results will vary based on your banking institution.

1. Explain your hardship, tell them you are sorry and that you have every intention to pay them back as much of the balance as possible and then set up a payment plan.

2. Set a budget and delete, eliminate and remove any excess spending from your life until your debts are paid. I know this is easier said than done, but eliminate the fast food, the local watering hole, new clothes, golf (I know that is blasphemy) and the little things that can be missed for a short period of time. Make a list for one month of checks written and cards used and then it will become abundantly clear where the money goes. Do not deny it, face it head on and make it happen.

3. If you get a lump sum commission, bonus, Xmas bonus, etc. make a large payment to the largest balance. Remember, your APR payments (loosely translated) are based on the average balance you carry from month to month, so the higher the balance you carry the higher the payments and interest. When you get yourself in trouble with multiple cards and large balances this is where you lose the ability to repay the debt unless the rich uncle who loved you dies and leaves you a small fortune.

There are millions of American's in the same place you are, so do not worry, do not give up, and most of all do not panic. Set a plan, stick to the plan and believe in yourself that you can do it. If you do succeed at digging yourself from this hole, the sky becomes the limit and then it is time to start thinking about a career move up or a new larger goal and you will live a life where obstacles are merely short term distractions!

Make it happen and have a great day!