When you have bad credit you do have two options to sort it out. You can go ahead and find a debt management company,but you are more than likely to get charged for those services and consultations. And you can go down the do it yourself route to set up a bad credit debt consolidation plan yourself. It is a little bit harder and requires more planning, discipline and energy, but in the long run can save you a few bucks and get you to the same place. You can get a debt-free life.
1.Evaluate your finances
You have to get all your balances and statements from all your creditors. You also have to look into your options and take a look how much you are getting charged each month for late payments. If you are you have to get rid of those charges and make sure you can make the repayments on time. If your income is lower than your monthly outgoings you have to find a way to either save money or increase your income.
2.Get advice and brainstorm
Sit down with your family, older relatives and close friends, there is a chance that they have already also suffered from bad credit and needed to set up a bad credit debt consolidation plan. So learn from their experience. If you are setting up a budget and plan that affects your immediate family you will need to discuss it with them, especially if it means pulling the belt tighter or having to do overtime.
3.Get in touch with your creditors
The most important thing is to know where you are standing with your creditors. See if they are offering help for you to set up a bad credit debt consolidation plan or have special products for consolidation you might get approved for. If you are not making repayments on time, they might also look into rescheduling your loan or freeze the interest on your credit card, however it will lose you some points of your credit score.
4.Check your finances
Keep a close eye on your financial situation and make a careful plan to make changes that are going to make it look healthier. Try to reduce all the fees and charges. With careful budgeting you can actually manage to make extra payments to clear your overdraft or credit card balances, that will reduce the outstanding balances get reduced faster.
5.Eliminate bad credit and set up a consolidation finance
You can get started with the bad credit debt consolidation plan now that you can make sure you can repay the installments on time. Apply for a consolidation loan if it is your credit cards you are looking to clear or a zero percent deal. The purpose of the bad credit debt consolidation plan should be to clear your debt faster than you would otherwise, so choose the consolidation products carefully.
6.Stick with the plan and enjoy a debt-free life
Once you have got the bad credit debt consolidation plan in place you just have to remember to stick with it and keep an eye on your progress. Stick to the plan and clear off as much of your debt as possible. Review your plan every few months and make amendments if necessary.
1.Evaluate your finances
You have to get all your balances and statements from all your creditors. You also have to look into your options and take a look how much you are getting charged each month for late payments. If you are you have to get rid of those charges and make sure you can make the repayments on time. If your income is lower than your monthly outgoings you have to find a way to either save money or increase your income.
2.Get advice and brainstorm
Sit down with your family, older relatives and close friends, there is a chance that they have already also suffered from bad credit and needed to set up a bad credit debt consolidation plan. So learn from their experience. If you are setting up a budget and plan that affects your immediate family you will need to discuss it with them, especially if it means pulling the belt tighter or having to do overtime.
3.Get in touch with your creditors
The most important thing is to know where you are standing with your creditors. See if they are offering help for you to set up a bad credit debt consolidation plan or have special products for consolidation you might get approved for. If you are not making repayments on time, they might also look into rescheduling your loan or freeze the interest on your credit card, however it will lose you some points of your credit score.
4.Check your finances
Keep a close eye on your financial situation and make a careful plan to make changes that are going to make it look healthier. Try to reduce all the fees and charges. With careful budgeting you can actually manage to make extra payments to clear your overdraft or credit card balances, that will reduce the outstanding balances get reduced faster.
5.Eliminate bad credit and set up a consolidation finance
You can get started with the bad credit debt consolidation plan now that you can make sure you can repay the installments on time. Apply for a consolidation loan if it is your credit cards you are looking to clear or a zero percent deal. The purpose of the bad credit debt consolidation plan should be to clear your debt faster than you would otherwise, so choose the consolidation products carefully.
6.Stick with the plan and enjoy a debt-free life
Once you have got the bad credit debt consolidation plan in place you just have to remember to stick with it and keep an eye on your progress. Stick to the plan and clear off as much of your debt as possible. Review your plan every few months and make amendments if necessary.
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