Why You Shouldn't Use a Credit Counseling Service to Repair Your Bad Credit (cont.)
Contributed by Deborah Zeitler
But I used a credit counseling service to try to repair my bad credit - are you saying that my credit will actually be worse?
Not worse, just not much better. If your credit report shows that your credit was already bad enough once that you needed the services of a credit counseling service, they simply don't want to take the risk that you'll get behind on your payments with them. It's that simple.
So what can I do to repair my bad credit, besides using a credit counseling service?
There are several things you can do! First of all, most people don't realize that they can negotiate with their creditors themselves, the same way a credit counseling service would! Try to speak to a supervisor, and be completely honest about your financial situation. Some creditors won't give an inch, but in many cases they will agree to reduce your finance charges, which could make your monthly payments a bit smaller.
Secondly, GET REAL about your monthly budget, and keep records to find out where your money is going. Are you living beyond your means? If you are, then stop! For most people, this one step alone will find them that little extra each month that they need to get caught up over time.
But before you do anything, first take a deep breath and remember that old saying: A journey of a thousand miles begins with one step. Just as it took time to get into debt, it will take time to get out of debt, but if you start that journey today you will slowly but surely get there.
