Credit can be a sore subject, especially when a person’s credit history has been repeatedly blemished by late payments and delinquent accounts.  Some people would rather just ignore their credit history, but the reality of the matter is that there are often times when a credit score will be checked for more than simply acquiring credit; employers, potential landlords, and insurance companies all utilize credit histories to predict a person’s reliability and trustworthiness. 

For those a person who cannot simply ignore their poor credit, there comes a time when they must make an attempt at fixing it.  It may be tempting to simply pay a credit repair service to take care of the repair instead of jumping into the endeavor personally.  After all, there is an abundant pool of credit repair companies to choose from, and many consumers feel overwhelmed at the prospect of attempting to take care of repairing their credit themselves.  Some consumers may not even realize that they can take care of the repair without help from a professional company.  Rest assured, it can be done, and in all likelihood a person can do it better than a company can anyhow.

There are two different types of credit repair services: consumer credit counseling services and “We’ll Fix Your Credit” type companies.  Although CCCS is generally a much more credible alternative to the other option, there are some credit counseling services who take advantage of the non-profit status afforded by the government to swindle desperate people out of money.  Stories abound of payments being made late or not at all and of ridiculous fees eating up consumers’ money.  A reputable counseling service will not charge consumers a single dime for using the service, as it is creditors who make these sorts of programs possible.  Creditors like these sorts of services, even though they generally require lower interest rates and forgiveness of some fees, because they would much rather have a consumer who pays off a delinquent balance little by little with the assistance of a company rather than not paying off the balance at all.

Those companies who advertise so prevalently, claiming to be able to erase bad debt from credit effortlessly yet for a fee, are best avoided.  These companies may indeed get negative items erased from credit reports, but the result is merely temporary.  By the time the consumer realizes the debt is back on their report the company is long gone with the money.

Perhaps the most noble and empowering way to repair credit is to do it yourself.  Those same collectors, who call at all hours, demanding payments and generally being quite rude, will have a miraculous turn around if you are suddenly willing to cooperate.  The next time one calls resist the urge to hang up or yell at them for hounding you.  Instead, try explaining to the collector that you know you owe the money and you fully intend to pay it, and tell them a realistic amount that you can afford monthly.  You may be surprised to find that an amount as small as five dollars a month can keep the collectors at bay. Some financial experts even suggest sending a copy of your budget to the collector to show them that you aren’t kidding when you say you only can spare a few dollars.  This proves the collections company that you’re serious, and may stop the phone calls.   Even if the manageable payments are tiny in comparison to the balance owed, it is legions better than ignoring the problem.  After all, you did incur this debt, and it is your responsibility to pay.  

If at all possible, contact the company prior to the accounts going bad.  If you know you are going to have problems paying your bills this month there is nothing wrong with calling up your lenders and requesting what is called a “skip pay.”  This means you skip making a payment one month, without penalty, in an effort to stay afloat.  That may be just what you need to get your monetary affairs back in order.

Stay in contact with your creditors, try to pay your bills promptly, and stay dedicated.  Why pay for something that you can do on your own?

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