Here’s a Plan to Help You Repair Your Bad Credit Score

I had collection agencies hot on my tail. I couldn’t shake them. I was too proud to declare bankruptcy and live the next ten or twenty years with bad credit, but I had a very bad habit of only making my debt worse when I wasn’t just treading water. The one thing that was working in my favor besides my own stubbornness and determination was the fact that I never felt alone in my troubles. No matter how mean these collection agencies came across I knew that we were still working on a general contract together and it benefited us both to come to a positive solution where I was able to pay off my debt.

Creditors are not the enemy, but your spending habits might be

I think a lot of people think that creditors enjoy burying people in debt, but it doesn’t quite work that way. They really just want you to borrow some money and pay it off in a timely and consistent manner, and then do it all over again next month. I learned during the long road back from debt crisis that the most important thing is to be consistent with your payments. I’ll take a moment to explain.

• If you are here right now wondering how to do bad credit repair yourself then the first step should be obvious. STOP ACQUIRING NEW DEBT. Stop using credit cards. Use cash or check.
• Get a grasp of what you owe. Consolidate your debt for easier payment schedules. Transfer the balance of a credit card with high interest rates onto a credit card with low interest rates.
• Pay your debts on time each month. Missing payments hurts your credit score. Pay more than the minimum. This will affect your credit score positively.

Turn it all around

When I decided enough was enough I took my credit cards and put them in a lock box in my home. I then got organized and took out all my income pay stubs from the previous 6 months and lined them up with the bills and debts I was accumulating. At my kitchen table I came up with a personal debt to income ratio. This gave me a big picture idea of what I was up against. I took out a calendar and set some goals for myself that I hoped to achieve throughout the year in regards to paying off my debt. For instance after three months I made note that if I made payments according to my plan I’d have paid off $1,000. Each week I made sure to put money aside to be able to pay about $335 towards my credit card debts. By becoming organized and responsible with my payments I built some momentum towards paying off debt.

How do you repair bad credit? Become responsible with your payments and pay more than the minimum each month. How do you rebuild your credit over time? Stick to the above mentioned plan for however long it takes. Many people have come back from crippling debt and you can too. To learn more about debt recovery plans visit www.credit-yogi.com. They also have access to the best credit repair services in the country. For a free consultation call them directly at 1-866-964-9644.