Debt relief and credit repair are related concepts; however, there are differences between the two. The first means getting your bills under control and the second means cleaning up the mess that excessive debt can cause. Credit counseling can help you to complete both tasks so that you can take a new lease on life. Here are some debt relief and credit repair tips that you are sure to find useful.
Debt Relief Tips
- When you realize that you are too deep in debt, the first thing that you should do is to stop using credit. It will be hard, especially if you are used to using credit cards from day to day. If you can not handle the temptation, cut up your credit cards. Rely solely on cash.
- Communicate with your family. Let them know that you are trying to get the debt under control and, in the long run, it will be best for all of them. If they know about the situation, you will receive less pressure from them.
- Contact a credit counselor that specializes in debt relief. They can advise you about consolidation and if necessary, they can negotiate with your creditors to get your payments under control. Beware; there are a lot of debt relief scams. Make sure that your counselor is legitimate.
- Develop a personal budget. A credit counselor can help to do this. You must learn to live within your means. A personal budget will help you to control your spending habits and it should include savings. If approached with a decision to purchase something, if it is not in the budget, you can not afford it.
Credit Repair Tips
- Order your free credit reports from each of the three major credit bureaus. You can order them online from http://www.annualcreditreport.com
- Contact a credit counselor that specializes in credit repair and offers a free consultation and a warranty. Make sure that you get a contract that is specific. Again, validate legitimasy credit repair is another field that is filled with scams.
- A credit counselor can review your credit reports, get rid of invalid reports, work out settlements for your collection accounts, and increase your credit score.
- It will take at least 30 days before you will see any improvement. Over a 180 days, a credit counselor should be able to increase your credit score quite a bit.
- Always make your payments on time. If you keep your accounts current, your credit rating will improve over time.