Fixing Your Credit Score

debt slavery Once you understand where your credit score is, you need to understand what to do with it. Obtaining a good credit score is as important to getting yourself out of debt as actually dealing with the tangible money side of things. Better credit gets you a better credit line. With a better credit line, you can deal with existing debts. If your credit score shows any bad entries then you will need to address these quickly.

If something has previously gone to collections or you have missed a payment, you should get in touch with a financial firm or law firm that specialize in getting things removed from your credit. It usually costs around a few hundred dollars, however having things taken off of your credit will save you ten times that when it comes to future loans or negotiating with your current lenders.

The trick is to get on the best footing as quickly as possible. This process will usual’s take around six months to have things removed from your credit, until then keep on top of your payments (if possible) and keep things out of collections. If something does go to collections, or you think it may go to collections during the time when you are having your credit fixed. Contact the company immediately. Speak with them about a payment option keeping it out of collections. Most companies will organize payment with you to help you and them pay the money you owe. Once you have addressed your credit score, and hopefully any bad entries have now been removed, the best next step is to undertaken an old school assessment of your physical finances.

saving cut costsPhysical finances are your day to day spending habits vs your income. Write down and make a list of everything, this includes any small amount you may pay at a store for coffee, food, everything. A useful tip. Most banks will actually have a totally free feature that will show you where you spend the most amount of your money. Log onto your online banking or ask in a branch and they will be happy to show you how to work these features. Understanding where your money goes is key to managing your finances. You need to know if it is something you can stop or something that is making you sink because you have to spend it. This information can be priceless at helping manage finances.