This is going to be an interesting post because I don’t like to admit the fact that I was wrong about a topic I know so much about but several of our members have shown me the error of my ways. I am not too proud to admit when I am wrong, especially when it comes to helping people. So, here goes:
I was wrong!
When I stated that your first proactive step for credit restoration after you have developed a comprehensive plan, set a budget for credit restoration and scheduled the necessary time to complete your plan was to generate new positive good credit so you can begin the aging or seasoning of the accounts, I was wrong. Sort of.
That strategy is correct ASSUMING that you aren’t currently in jeopardy of losing your home or car. So, with that said, before you can even think about how to fix credit fast, you need to “get your house in order”. What I mean by this is that if you are behind on payments on your car or your home, rectifying those situations is the first priority. The reason is because if you lose your home or car these problems manifest into other issues that cause other credit repair problems and cost additional funds. This week alone I had clients in jeopardy of losing their vehicles to repossession and their homes to foreclosure more concerned about credit restoration than saving the existing credit that they had and saving their car and home!!! I couldn’t believe it. I knew then that I had to get this information out immediately.
While I love the passion towards credit restoration, allowing a repossession or foreclosure is like shifting into reverse while you are driving 90 miles an hour.
So, as you go through our program and watch our Member Videos on credit restoration, be sure that before you do anything else you are getting your financial house in order. The key here is to put together an actual, and I hate to use the term, budget. The first thing is to identify where all of your money is presently going, how many accounts that are in good standing are paid current, how many are behind and how many have been completely written off as a charge-off, collection, repossession or foreclosure. Then, once you have identified where your money is going, take a look at the accounts that are behind and determine what you can do to get them current.
A resource I found and tested this week that I highly advise is the FREE online financial planning and budgeting software offered by Mint.com (recently acquired by Quicken). I did a trial of it earlier this week and let me tell you, it is fast, easy and awesome. It integrates all of your bank accounts, credit cards, car loans, mortgage loans, etc., all in one place so you can see your balances and debt owed in real time. If all that wasn’t enough, they also have an iPhone app! I highly advise you to take 5-10 minutes (that’s all it took me) and setup all of your accounts in Mint.com so you can get a great overview of your current situation. Otherwise, you are simply burying your head in the sand like an ostrich in the hopes that the pain goes away. Unfortunately, without some elbow grease, it never goes away.
In addition to understanding where your money is going, you need to determine what you can do to cut unnecessary expenses AND what you can do to generate additional revenue and cash flow. In the next post, I will go over methods that you can employ TODAY to generate cash fast AND create additional monthly cash flow. With this additional cash, you are going to bring accounts current, develop an emergency reserve and then work on your credit restoration plan to get out of debt.
While we are on the subject of credit repair, one of the biggest mistakes that most people make when they experience financial issues that cause late or defaulted payments is to cease all communication with the lender. Always maintain communication and make efforts to work out payment or restructuring plans so that the loans do not end up in default, repossession or foreclosure. A little communication goes a long way and can save you from a great deal of pain, suffering and financial hardship.
So, to recap:
1. Get Your Financial House In Order BEFORE You Work On Credit Restoration
2. Know Where Your Money Goes
3. Cut Unnecessary Expenses
4. Generate Additional Revenue & Cash Flow
5. Always keep the lines of communication open with your lender/creditor while your account is in good standing
As always, please leave me your questions and comments in the comment box below. We would love to answer your questions on how to fix credit score issues!
If you would like to learn more about how to fix bad credit, don’t forget to enroll in our membership program. We will teach you everything you need to know about credit from student loan rehabilitation and credit card debt settlement to the top strategies that I used to repair my credit.
We will even walk you thought getting poor credit home loans and and after bankruptcy mortgage loan. Join us today!
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