A Four-Step Plan to Credit Repair Debt Consolidation

Most people carry a sum of debt at some point. If you have debt, this isn’t an unusual thing; it’s perfectly fine as long as you are keeping up with the payments. But if you fail to make those payments repeatedly, you will find yourself among the ranks of debtors who have bad credit ratings. If you have a bad credit rating, banks and lending institutions will consider you to be a high risk prospect. This would mean higher interest rates, more stringent requirements, or even ineligibility for loans.

Improve Your Credit Rating with Credit Repair Debt Consolidation

If you find yourself in such a situation, don’t despair. Learn from your mistakes and carry on. With these four steps to credit repair debt consolidation, you can elevate yourself from the ranks of high risk prospects. Rapidly raising your credit score should be your immediate goal. A rapid raising of your score would mean one year — an achievable goal if you abide by the credit repair debt consolidation plan outlined below.

Step 1: Get a Free Credit Report

You can get your credit record for free, once annually, from at least three credit reporting agencies: Equifax, Experian and TransUnion. To monitor your credit rating more closely, request a report on your credit record once every quarter.

Examine your credit report meticulously, line by line. Write in to challenge anything that seems inaccurate. If your creditor does not provide evidence in response to your challenge within 30 days, the inaccurate record will be struck out, leading to a rise in your credit rating. This first step is essential to your credit repair debt consolidation process.

Step 2: Prioritize and Pay Off Your Debts Quickly

The purpose of credit repair debt consolidation is to clear off your debts. List out your debts, in order of which ones are causing you the most financial headaches. For example, most loans charge you 18% interest per annum, while your credit cards typically charge you 3% compounded interest per month. It’s definitely sensible to clear off your credit card debt first, in this case, because your credit card debt is causing a hit to your credit rating. Pay off the minimum monthly dues for all loans, but pay extra for the highest interest loans, to finish them off first.

Step 3: Pay Your Bills Early

Not missing payment due dates is very important to you credit rating. Before you are considered a safe prospect again to banks and lending institutions, you will have to meet all outstanding payments before deadline every month for at least a year.

Step 4: Get a Secured Credit Card

Getting a secured credit card will raise your credit rating and expedite your credit repair debt consolidation efforts as well.

Commit yourself to these fours straightforward, simple steps and before you know it, you will be living free of bad debt again. That liberty is yours if you truly have the desire for it.

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To Your Financial Success
~Suze Fulton

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