6 Steps To Debt Consolidation And Credit Repair

Oct. 25, 2010 - PRLog -- It is never too late to consolidate your bad credit, and the sooner you start the process, the easier and more painless it will be. The earlier you start consolidating and tackling bad credit problems the more options you will have available. The worst thing you can do is just to simply ignore your bad credit and let it get out of control.

1.Assess your credit
See clearly about your debt, and this is the best place to start. You have to contact your creditors and ask them for a settlement figure, make a spreadsheet or just a A4 page that you stick on your wall containing all the details of your outstanding credit commitments will do.

2.Add up your monthly repayment
   Make a note of the following details on the spreadsheet:
creditor's name
amount of outstanding debt
annual or monthly/daily interest rate
monthly repayments
if it is a loan, how long is it got left to run
if it is a credit card, calculate how long would it take you to pay off the balance if you made the same payments you are making at the present

3.Evaluate your monthly outgoings
You have to also add the amount you have to spend on other bills, like grocery, petrol and monthly invoices. Travel costs, and other expenses should be included as well as leisure activities and memberships.

4.Evaluate your income
Place the two spreadsheets or pieces of papers next to each other and if the sums are not balanced, start brainstorming:   
- how can you reduce your monthly repayments while reducing your debt, too
- how can you improve your income so that you can reduce your credit faster

5.Make a note of the highest amount of credit with the highest interest
Try to eliminate the worst credit first: like contacting creditors, getting balances, doing overtime, making a plan to make overpayment on the credit card, cutting up your credit card, make a weekly budget, etc.
You can look at options to ask for the interest to be frozen on your account by contacting the loan or credit card provider, but you will need your income and expenditure details first.

6.Get a copy of your credit file
You will be able to determine how many options you have to consolidate your debt by getting a copy of your credit file and check your credit score regularly. Some companies do offer this free of charge, therefore it is not hard to obtain the information above.

Congratulations! You are on the way to consolidate your debt. But without a clear consolidation plan there will be no results. You need to make sure you set up a plan and stick to it, o something every single day to better your credit rating and eliminate bad debt. For more step-by-step instructions please check out my new resource on by blog!

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I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life.
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