GavaldaFX Forex Blog

Before we roll up our sleeves and take the gloves off I highly recommend that you bookmark this article. You will need to refer to it repeatedly. I also recommend that you get something to take notes with.

Let’s begin by getting you organized. You will want to generate a list of whatever revenue you currently have coming in. Don’t forget to include revenue such as government checks, tax breaks, or any additional pension payments. Next make a list of all your fixed expenses, i.e. utilities, rent and or mortgage payment, car loans, groceries, etc. I think you get the point of what a fixed expense is. By following this process you will develop a good understanding of where you are making mistakes with your finances.

It’s time to take action. Contact your creditor and negotiate some sort of repayment plan. Once you and the creditor have come to a mutual agreement you will want to get the agreement in writing. DO NOT leave it up to the creditor to draft up the agreement letter, it will never get done. Since it is you that need them more than they need you, it is recommended that you take the initiative to draft up an agreement letter and send it to the creditor along with a self address stamped envelope.

If you have a damaging history of delinquencies, and a poor credit score, I recommend that you write to the creditor asking them to change any charge-off to a, “paid as agreed”, or “paid in full, on-time.” The same strategies that I am sharing with you right now will also work with collection agencies and credit attorneys as well. The most important thing about using this technique is to remember… DO NOT SEND ANY MONEY UNTIL YOU HAVE AN AGREEMENT!!! In the past I have had students send a payment in with the agreement letter just to find there self standing in front of a judge, and worse than that they lost the case and ended up spending more money.

With your agreement in place you are moving in the right direction. You can keep up the good work by starting a new line of credit. This is a strategy that is often over looked and that can immediately increase your credit score by 150 points. In order to start a new line of credit all you have to do is get a secured credit card, secured loan, or a car loan. Out of the methods that I have just mentioned obtaining a secured credit card is by far the easiest one. It is also important to note that you should never let your balance go over 20% of the maximum credit offer.

The strategies that I have just shared with you will indeed help to repair credit history, however it isn’t enough. You will also want to correct some errors that you currently have on your credit report. If you were to listen to the media you would believe that the best way to repair your credit is to use a credit repair agency. However if you were to to believe the Federal Trade Commission (which would be a wise choice) they explain that there is nothing that any other agency can do for you that you can not do for yourself. In fact they recommend that you do repair your own credit.