Debt Consolidation Credit Counseling In Phoenix

If you have applied for a loan before there is a good chance that you like many other people were denied and told that you need a bad credit personal loan. If this describes you then it is no fun but lucky for you it only seems like the end of the world.

If you fit the bill then here is what happened. You spent a lot of money and were bad at making your credit card payments. Whenever you do things like this you will be hurting your long term financial health. But here is what you need to do. Go get your statements from the credit cards and your banks.

To begin to fix your bad credit you first have to figure out where you are really at. Id your financial house in order? If not do a personal audit. Get all your bank and credit card statements. Then go and get a credit report.

The credit report will have all of your outstanding debts according to the credit bureaus. While there is controversy regarding the bureaus that is the system we have right now so you will have to deal with it. Ignoring them will make you pay an inordinate amount of money for any loan you do.

Now look at the report and search for any discrepancies. Hopefully you can find some major errors and fix them with some phone calls. But the reality is that most people with bad credit scores earned them. Even if it was not by choice it does not matter we need to fix it.

If you don't have errors figure out what debts you can rapidly pay off. Ideally you pay off the higher interest rate debts first and then focus on the easier debts that don't hurt your score as much.

Now you should call the lenders and see if you can negotiate a lower rate for your existing debt. If your situation is not too bad you may even get more credit. If so then your credit score will be better and you can avoid getting a bad credit personal loan.

Now that you have done everything you can it is time to apply for the loan once again. Hopefully you do not need a bad credit personal loan but instead can get a regular low interest rate loan. To avoid this in the future make sure and pay your debts on time and pay attention to your credit score.