How Do You Fix Credit Problems Other Than Filing Bankruptcy?
Many people with credit problems and outstanding debt think there is no way out but to declare bankruptcy and potentially ruin their credit. However, options are available that will help a person reduce debt and payments without filing for bankruptcy. Fixing credit problems takes time, sacrifice and perseverance. But the peace of mind that comes with getting out of debt and becoming financially secure is worth the effort. Step 1 Create a workable budget. Many people overlook this simple but crucial step toward fixing credit or debt problems. List all incoming and outgoing income, then cut down on non-necessities. Take a good look at where every dollar goes, then decide what extras you can do without. Step 2 Pay extra on high-interest lines of credit first. Any money left over in a budget should go toward two things: putting a small amount each pay period into savings and applying as much as possible toward high-interest debt. Once you’ve budgeted how much extra you can pay each month,
