Repairing Bad Credit

Posted by Nick Niesen on November 8th, 2010

Building your credit after repeated interruptions is a constant headache we all want to avoid. In this article I am going to break it on down for you since there are many sources that will take full advantage of you when the opportunity arise. If you feel bad simply because you can?t meet your bills expectations at the moment they arrive, then you are not alone. The fact is, even the best of us are struggling to meet some expectation that the system has placed on us.

We calculate weekly the amount we spend on groceries and gas, which are constantly increasing, as well as other bills that are constantly on the rise. It seems at times it is a no win situation but the fact is, there is always a solution to most problems. The problem most times is some of us do not have the means to find those solutions. This brings forth more stress and often we feel that we are alone.

If you trying to build your credit status, you need to find the resources that can help you get results. The marketplace offers credit repair kits, which can lead us in the right direction to repairing credit, but the disadvantage is that many of the kits are expensive. Let?s face it, not everyone has the money to spend on commodities that claim to help us. Some of us struggle harder than others just to survive. Life is forever changing and in order to keep up with the changes we all have to find a solution. Therefore, I am going to tell you where you can get a free credit repair kit.

Your local library stores a wealth of information and it is free to the public. Most libraries have credit repair kits, credit repair books, or debt management solution books. Anything you want at your disposal and it is all free information. Most libraries have copy and fax machines and if you notice in the credit repair guide or kit, it will have copies of the letters you can write to your creditors. Make yourself some copies and complete them as instructed. You are now on your way to repairing your credit

The local library also has guides or kits for filing bankruptcy. If you do not see a way out, then you may want to go this route. In bankruptcy, you have minimal credit reduction, your creditors implement many conditions on payments, you lose all your assets and your creditors dictate your monthly payment options. In most cases, you can do a Pro Bono Bankruptcy, which means you will represent yourself in the courtroom. I just wanted to let you know that if you file a Chapter 7 Bankruptcy, you will have monthly installments to make but if you file Chapter 13 Bankruptcy then the courts wipe out all your debts. The problem is that bankruptcies remain on credit files for up to ten years or longer. If you can avoid bankruptcy do so, however it is not the end of the world if you do. I know people personally that filed bankruptcy and was able to get loans for mortgage, cars and so on.

If you know what you are doing, you can do anything no matter how bad your situation may be in your life. Debt consolidation should be considered only if you are more than a few thousand dollars in debt otherwise the consolidation might not be worth it to you. I suggest that you avoid debt consolidation altogether, simply because it is means you will be paying fees and costs to others to get out of debt, which only adds up the bills. Another debt program is called debt settlement. Debt settlement is not the same as debt consolidation. Debt settlement is a bankruptcy prevention program and helps improve your credit score because bankruptcy was not involved. Another way that you may want to repair bad credit is to consider a Debt Counselor from a respected organization.

It makes sense to check out any business first before spending money or asking for services. Check with the Better Business Bureau which offers free information on organizations, businesses and corporations. Perform some research on debt management companies who offer these programs before committing to one of these organizations. Once you have investigated their services then you will know if the people are really trying to help you. Any service that tells you they can get you out of debt in no time at all is probably pulling your leg. The fact is even when you pay your bills your credit will continue to list all the bad debt. Your credit will only say after the debt listed??Resolved?. A Final message while I am thinking about it. It is important to get copies of your credit reports from TransUnion, Equifax, and Experian. You can find any information you need online. Knowing your status in life is the beginning of repairing bad credit.