Do you find yourself suddenly in the process of try to figure out how to rebuilding your credit score? In communities all across the country people have either lost their homes in foreclosure or had to apply for a loan modification. Banks required home owners to be behind on their mortgage before they would even consider a loan modification so many opted to miss a payment or two in order to get the banks attention.
To make matters worse many people have lost their jobs. What used to be dual income families are now single income homes and with so many people unable to find jobs the burden of keeping up with the bills has now fallen on the shoulders of one family member.
As a result families fell behind on other bills such as credit cards and other monthly obligations. Some families have even had to eliminate necessities such as medical insurance causing further financial distress with additional medical expenses. All of these things have devastated a lot of people’s credit scores. Does this sound familiar? Have these types of situations left you rebuilding your credit score?
Rebuilding Your Credit Score - A Family Matter
So how does someone begin to rebuild their credit score with all these financial hardships going on? As the job market begins to open up and people start to go back to work, in some cases for less income than what they were used to making, tough decisions have to be made. Families need to work together to take a close look at the situation and decide how they are going to work together to get through these tough economic times.
First things First when Rebuilding Your Credit Score
The first step to rebuilding your credit score is to get a clear understanding of what the situation is. Sit down together and put everything on the table. Who do you owe and what are able to pay right now? What shape are the credit reports in? I some cases it may require that one of the family members or both get a part time job to help make ends meet. Some things will all together have to be eliminated, like club memberships, the morning coffee on the way to work, the magazine subscription, maybe you have to start car pooling. The bottom line is you have to figure out how to cut cost in and outside of the home.
Once you have a clear understanding of where you are and have come with a plan to make ends meet, it’s time to start evaluating your credit profile. You may have to start paying down some debt to get your balances under control, you may have to try negotiating with some creditors for reduced pay offs, you will have to make sure that you are paying your bills on time. The thing to remember is that it is going to take some time so give yourself a break and just be diligent and follow through with your plan and most importantly, be patient.
Hiring a Professional to Help you with Rebuilding Your Credit Score
In some cases you may require the expertise of someone that can help you with developing a plan for repaying your debt and rebuild your credit score. Educating yourself on how credit works and what you can start to do to rebuild your credit is critical. Whether we like it or not, credit in today’s world is a must. The old saying “Cash is king” has been replaced with “Cash is king, but Credit is EVERYTHING!”
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