Just like you won’t lose weight overnight, you also can’t fix your credit overnight. Even if you win the lottery and immediately pay off all of your debts, it is still going to take a little while for the negatives on your credit report to fully come off, and for your credit rating to sneak back up to a more reasonable score.
You also don’t want to take a lump savings sum and drop it all on your debts, instead keep some of that money in your savings, just in case. Emergencies happen, and spending every dime you have on fixing your credit may get you into more credit problems in the long run. Here are some ways to take it slower and pay your debts off right, so you can, hopefully, stay out of debt.
Consider Using Debt Consolidation
There are many debt consolidation companies out there, and some are better than others. Before you pick the one you think is right for you take some time to read reviews on them and look them up with places like the Better Business Bureau. You might even want to inquire on social media to get suggestions from people you know on which ones they’ve used and how it worked out for them.
Take some time to read all the paperwork your service provides to you as well. You want to know what you are in for, and if you need to cancel or stop making payments for some reason you want to know what kind of penalties there may be.
Find Your Credit Score And Credit Report
Even before you decide to go with debt consolidation you should take some time to look at your credit report first. You may find that your credit isn’t as bad as you thought it was and that you can pay off what you owe without the help of consolidation. Make sure you get your info from all three credit reporting agencies.
If you have a credit card that keeps you updated on your fluctuating credit score (and that it will do) take some time to look it over when you get updates. Look at how it changes, and when it changes. You may find it is higher when you have less debt on your credit cards and that it is lower when you owe more or miss a payment.
Get Rid Of Some Of Those Credit Cards/Loan Payments
How many credit cards do you have? How many do you really need? Instead of holding onto too many cards, once you have them all paid off you can get rid of a few of them. Only do this when all of your cards have a zero balance if you want to avoid a negative impact on your credit score.
Try to keep one major credit card on hand, and use it just for emergencies. Widdle down the amount of store cards you have to only stores that you frequent on a regular basis.