Ok, so you took those great low rate credit card offer and you used it. And then you got another and used it too...and then another...and...YIKES! You're now in debt and finding that making all those payments is about to overwhelm you.
Of course your next step is to try and refinance some loans, but you find out your credit score has dropped several points too because you were a teeny bit late on your payments.
What is a person to do?
First, if you have not gotten your free annual credit report, be sure to do so today because you can only solve problems when you know exactly where you are. Just like a roadmap that gives you directions, you must know where you are and where you want to go in order to take the fastest, easiest route to your destination.
You can get a free yearly credit report provided by the credit reporting agencies simply because they are required by law to give you one per year without charge. This is because you have a right to know what is contained in these reports that can affect everything financial that you do.
You only get one free yearly credit report a year, but that gives you an opportunity to check the information and make sure it's right.
If you have had a lot of activity on your credit cards and have not paid every one on time, it may have negatively affected your credit score. You might find, if you check the free anual credit report, that it has dropped from the last time you viewed it.
If you find your credit score has dropped, there are solutions to repair your credit.
The first thing you should do is consolidate those credit card loans and begin by repairing your credit problem at the source. Stop spending on credit cards!
The problem with credit cards is it's too easy to spend. Whether you realize it or not, using credit cards for all your purchases is just like going to the bank and taking out a loan, except it's so simple to use that you feel like you've got money even when you don't.
Credit cards make it so much easier for you to get out of control with spending. You think when you're shopping "I love that and I can always pay for it later". Impulse spending begins to rule your life.
When you have to resort to cash only, you are limited to what you have in your wallet.
The disadvantage is that you can't buy something that costs more than the dollars you have. The advantage is that you can't overspend.
If you're like most people, you love the spending part. But then the day comes when you have to pay it back!
The truth is this debt crisis was caused by the availability of credit cards and you are a victim. And so many companies now won't even let you buy without using a credit card. Therefore, we are almost forced to learn how to create debt from the beginning.
But to truly be free from debt and live your best, most fulfilling life, you have to be willing to take responsibility. Once you acknowledge your role in creating your own personal financial problems you then have the right mindset to begin to repair your credit.
Are you willing to do that?
If you answered "YES!" then here is what you can do to begin today.
Take advantage of the free credit report because they give you the ability to manage your personal credit situation by knowing what lenders will see when you apply for loans.
Then work to fix those items that could be mistakes or issues you can easily resolve. You can do this sometimes simply by making phone calls or writing a letter with a copy to the credit reporting agency.
Also, be sure that you get your free anual credit report every year so that you can keep up with your progress on improving your credit score.
Next, cut up those credit cards. Keep one for emergencies only. Buying that new pair of shoes for the party IS NOT an emergency.
Next, begin to combine your credit card debt into that one remaining credit card that you will pay every single month 10 days in advance of the due date. There is no reason to wait and by paying early you will begin to improve your score.
There are a number of other things you can do to improve and repair your credit, too many to cover here. Find a complete list and solutions check out the Credit Repair Toolkit
Much of the solution lies in what you know. Getting the right information and following a step by step plan can help you solve a good portion of the problems that are causing your credit score to be low.
Professional credit repair companies have the information and they check off their plan of action. They have a step by step plan of action and they check it off as they go. One thing they do is call your credit card companies and simply ask if they'll reduce the interest rate if they move all the debt from other credit cards to that one.
Why can't you do the same? Answer: YOU CAN!
Unfortunately, most of us are not trained in finance and we don't realize how easy some of this is to repair your credit because we don't have the right information or dealing with financial institutions seems scary.
The worst thing is to believe that you can't fix this yourself. From what you read, you might think it impossible to improve your credit without the help of a professional.
The truth is that you can repair your credit yourself. You can get a lot of information online. However, it takes time to research and pull all that information together. If you're like most women in debt you might not have that much time because you've got bills to pay and you really do want good credit because it affects much of your life from job applications to buying a car.
That's one reason that WomenCorp put together the Credit Repair Toolkit to help women save time and money. The goal of WomenCorp (www.womencorp.org) is to help women live a life full of meaning, freedom and financial security.
Make the decision today to do something about your financial security and wellbeing. You will be glad you did.
Rox Batson is the founder of WomenCorp Magazine, dedicated to helping women in business live lives of meaning, freedom and financial security. Find more information on how to start and grow a profitable business at http://www.WomenCorp.org
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