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Rebuilding Your Credit On Your Own Vs Getting Help

[Apr 16, 2008.]


If you're struggling to pay off debts and boost your credit score, you're not alone. More Americans than ever are dealing with financial troubles that are not only causing their financial health to suffer, but also their emotional health.

The good news is that there is help available, should you need to get advice on what to do and how to do it. But is it better to work on your credit on your own? Here are the two sides to this conundrum.

The best first step to take in rebuilding your credit is to try to cut back on your spending and put more money towards your current debts. This seems like simple advice, but that’s really all there is to making your debts smaller and smaller each month.

While you might need to break old habits and it might not be the most enjoyable time of your life, learning to live on what you make is a good lesson to learn, as well as pass onto your children or friends. You can take one of several approaches:

  • Minimize your extraneous expenses and put that additional money toward your payments.

  • Talk to your credit card companies to see if they will minimize your interest percentage.

  • Switch your balances to a low interest card, but then truly work to pay that amount down.

With these steps, your debt will not be eliminated immediately, but with each payment you make, you are going to see progress and change in your life.

However, if you try these steps and still find that you are struggling, or you find that you just can not stick to your financial resolutions, you may want to seek the advice of a credit counseling service. Not only will they outline a plan that will work for you, but they will also be able to guide you through any rough spots you might encounter.

For example, if you happen to lose your job or have a financial crisis of some sort. Having someone that is watching over you can also be a benefit of using a credit counseling service, as you will have to report any troubles that you encounter along the way, as well as any missteps.

A credit counseling service will also:

  • Talk to your credit card companies for you

  • Arrange for one simple payment instead of several

  • Monitor your progress and suggest adjustments to your financial plans

  • Report your financial progress to credit reporting agencies

There really isn't a right answer when it comes to rebuilding your credit – only the answer that works for you. When you're faced with financial stress, you don’t have to do it on your own, but in the end, the steps you take will be your choice and need to be fueled by a sincere desire to change your life.

Whether you choose a credit counseling service or you try to do it on your own, you're heading in the right direction - out of debt.


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