Thursday, 22 November 2007

Bad credit

It's easy to get into economical hardships. You can get unemployed, get divorced, get sick, someone close to you pass away, you can get robbed... Getting into economical troubles is nothing to be ashamed of and it's better to accept the fact and try to do something about it than to go on like nothing ever happened. Thank God I've never been in that situation and I hope I never will, but I know a lot of people who've been there.

I've heard that the number of "bad credit" consumers in the U.S. is growing by the day. Well, not only in the U.S., it's a problem that affects people all over the globe. And there's much to be done to prevent more people getting trapped in the bad credit limbo.

But once you're trapped, then what? Does it have to be for life? No, of course not. If you're suffering from bad credit there's a lot to be done.

The best thing would be to stay away from more credits until you're back on track, but since life isn't always logical you might need to get a new credit to pay for another one. That's where - A New Consumer Resource can give you a helping hand. It's a "free consumer resource dedicated to helping those with a less-than-perfect credit rating." Their goal is "to provide consumers with the knowledge and resources necessary to help them find the best credit offer to fit their needs, regardless of a bad credit history."

First of all, you need to make a financial plan - see the amount of money that's getting into the household and the amount that's getting out of it. In the long run you need to get to a stage where more money is getting in than going out. That's the hard part. But you need to make a plan that will run over at least a year or longer, whatever it takes to cure your finances. Credit counseling is a great way to get started.

Then you need to make a commitment. Do you really want to get out of debt? By making payments on time, you can rebuild your credit. Even if you can only pay a little every month, you need to do that and pay before the due date. Once you get into the habit it will get easier. Baby steps, as FLY Lady would say. And hang in there! It will get better.