Debt Relief - Rebuilding in the Aftermath Consumers who have been successful at debt relief only have one thing left to do: rebuild the credit that was destroyed.
Anyone who has completed a debt settlement or credit counseling program should be commended, because the majority of people fail when they attempt these programs.
You are now on a much better path to financial stability in the future, and it is now time for you to start rebuilding your credit to get back on track.
Most people find themselves lacking resources or information on how to rebuild credit when no one will give them a chance.
However, even if you look for a week and only find one credit line, it's a step in the right direction.
- Only open one or two accounts to start with.
Having too many accounts too quickly can have a negative impact on your credit, which is what you are trying to avoid.
- Make it a priority to pay bills on time.
This is the goal when you have just come out of a debt relief program.
Remember that not paying on time is what got you in trouble in the first place.
This accounts for about a third of your credit score, so stay current when you can.
- If you cannot pay for credit card bills, don't use credit cards.
It's a simple concept.
If you have a credit account, use it to replace the cash that you were going to spend on your various purchases.
Then, save the cash and use it when the bill arrives to pay the bill.
This will rebuild credit with ease.
- Keep track of your credit report and score.
If you visit annualcreditreport.
com, you can get a free copy of your credit report every year.
Don't bother with the 'free trial' programs offered by other services unless you need to monitor your report frequently and are willing to pay for that amenity.
- Have reasonable balances on your accounts.
It looks better to use a card a little and have a small balance than to pay it off completely or not use it at all.
Plus, if you get in a financial pickle, you won't have mountains of debt.
- Pay your bills, do NOT transfer balances.
This can be effective for paying off credit with lower interest rates, but is not the answer to paying your bills.
You shouldn't be robbing Peter to pay Paul, so to speak.
- Secured credit cards, gas cards, and department store cards are your best bet when you're dealing with the aftermath of debt relief.
- Don't close accounts! Just don't do it.
You can stop using cards if you don't like the rates, but don't close accounts because this hurts your credit worse than not using them.
- If you get into financial trouble again, remember the debt relief solutions that you used before.
Don't ignore the problem and make sure that you're financially educated so you have a better chance at success.