Self credit repair simply means restoring your credit records to a favorable status without the help of a professional. It is enticing to think that you will be able to save some money from doing it on your own but it isn’t the easier path. Still, it isn’t impossible either. The main point is to resolve to make a plan and see it through but be willing to adjust whenever possible if it would mean reaching your goal earlier than you originally expected.
Always Start With An Updated Credit Report
You are entitled to a free credit report so make sure you get an updated report before you even start planning your course of action. There may be information on the report that will prepare you for a possible denial of credit application, insurance application, or your job application. You can get your free report online through Annual Credit Report and after a few months, you should go back and pay for a new updated report. This is not only encouraging but informative in case you need to tweak your existing self credit repair plan.
Buy a Finance/Money Journal
You need to start keeping track of your bills so you pay them ahead or on time. It should also make you more determined to drop a few unnecessary or “can live without it” expenses like cable, a permanent land line, social shopping, and other similar activities. The key to keeping a journal is opening the diary every day and jotting down where your money went. You can even start totaling your day and week expenses. Turn it into a challenge in bringing down your weekly expenses. When you have done this, you can move on to lowering monthly expenses. You will be shocked at how much fast food you buy or how much you spend on fuel.
Stop Using Your Credit Card & Get A Debit Card
If your credit problems arose because of your credit purchases, it’s time to start spending in cash. One way to transition is to open a savings account with a debit/ATM card that can be used to pay your bills. This is also known as a secured credit card which means you can’t use it unless you have available funds in the account. The traditional credit card can be closeted and used only for emergencies provided you have the discipline in declaring what constitutes an emergency purchase.
Avoid Late Payments
Late payments means another 2 years of poor credit so stay within the 90 day grace period if there really is a fund shortage but work on paying more than the minimum with every payment.
Find A Second Source of Income
Clearly, your spending is more than your income so you need to consider finding a second source of income that will not compromise your current source. This can be a one-time sell-off of your personal items or starting a part-time job or home business.
A self credit repair job is going to be one of the toughest uphill climbs of your life but each month that passes without additional or unnecessary expenses means that you are repairing your credit problem.