Debt Consolidation Credit Counseling In Phoenix

It's really hard to go and live in this world with bad credit. People everywhere are in debt and in need of help. What are you supposed to do when you want to make that big purchase and the loan gets denied?

Getting your credit fixed takes time and effort. It's a simple process and it can be done. Patience is the key. Keep a reign on spending and follow some rules and your credit will be back in good standing.

First thing to do, must do is create a budget. This will allow you to know how much money each month you can spend on your debts. It's best if you document for one month your spending habits. You never know how much you spend eating out and buying fancy coffees.

First, get a credit report. The three major credit agencies are Equifax, Experian, and Trans Union. This will help to see what you owe and who you owe it to. There are plenty of online website that can help you with this.

The next step is contacting the creditors. I know this is something that is somewhat dreadful, but it must be done. You need to enter payment arrangements and schedule promise to pays with your lenders. This is the first step in the right direction. Any promise to pay or payment arrangement should be in writing. Sometimes, if you offer to pay off the full amount, they will let you pay off the amount at a discount.

Now you need to close out and pay your credit card debts. Destroy the cards and start paying them off. The best idea is to close all the accounts you have except your three oldest ones. You see, credit scores are based on the account history as well as other factors. Even if these lines of credit are opened, you don't need to use them unless it's an emergency.

You must make all your payments on time and avoid bankruptcy. It's a good idea to join a credit union as well. They offer a better chance of giving you a consolidation loan if you want to go that route.