What is credit relief? For our purposes, this article will treat the phrase credit debt relief as bad credit relief. A year ago, Roy Thomsitt, a former financial professional and project manager, now of the American Chronicle, wrote that the previous year?s financial numbers made grim reading. ?Bankruptcies rose, and with an estimated 1.4 million adults wallowing in £10k or more of unsecured debt they feel unable to repay.It is almost as if a bad credit record is heading towards becoming the norm rather than the rare exception.?
In order to work on bad credit relief, you need to know what your credit score is. Some information can be secured for free on-line, while more detail will cost you. This is money well spent, however, because you cannot fix an unidentified problem. Score in hand, you will want to apply the breakdown. In general, amounts owed, new credit, types of credit used, length of credit history and payment history make up your credit score. Knowing the amount that each of those components affects your overall score will also help you work towards bad credit relief. For example, the amount of debt that you owe affects your overall score by around 30%. The amount of new credit that you have opened affects the score by 10%, as well as does the types of credit you have used or are currently using. The length of your credit history affects 15% of your score, and your payment history affects the last 35%.
There are practical steps that you can take, starting today, to work on bad credit relief; however, it will be important to keep in mind that credit relief will take time. Secondly, if you take into account the two factors that most affect your credit score, you should know how to start working toward bad credit relief: You need to lower the amount of debt that you currently owe, and you need to pay this debt off on time. If, however, you are experiencing a low cash flow lately, these two tasks may seem impossible. You will need to come up with a plan, and if your financial situation seems too dire to you, you should enlist the help of a financial planner who specialises in bad credit relief. To tackle another area that affects your credit score, you may want to simplify to one credit card. Properly cancel the superfluous cards, and then only use the most beneficial card. In the future, you will want not to fall into the trap of applying for more cards because of the offers that they boast.
In short, bad credit relief is possible if you are willing to put in the time, effort, and discipline. You simply need to keep yourself aware of your financial situation and then work at bad credit relief step by step.