Prevention of the Credit Repair Process

As one finds oneself in a dilemma due to financial implications that are brought about due to one losing their job, or losing an amount of income due to reduced hours of working, a question arises as to whether or not we may well get into trouble with our debt repayments. This in turn, if it happens, will affect our credit history and score negatively, which may require credit repair after the so called storm has passed.

The very well known saying of prevention is better than cure really comes to the fore in terms of the financial difficulties that we may encounter. In terms of this saying, should we find ourselves in a position of financial difficulty the best possible route to follow, in order to possibly avoid a credit repair process later on, is to be open and honest with all your creditors.

This does not involve walking into the office of your creditors with something of a could not care less attitude, but rather a process of contacting the creditor and advising of the current situation and requesting as to what your options are. This will open the channel of communication and the creditor will most likely make a note about your current position and perhaps a rescheduled payment plan or contribution holiday can be considered. This is not the case with all creditors, but it really would not hurt to at least ask and then consider your next option, if they are not helpful in this plight.

By approaching your creditors, instead of ignoring a situation where you may get into an amount of trouble in terms of repayments, might help you in not having to conduct credit repair processes which are more difficult than merely communicating with your creditors early on. The credit repair process may even include the possibility of a large amount of administration in order to try and get your credit score back to where it should be. And therefore one is urged to rather communicate than ignore the problem, thus allowing it to get out of hand.

Other options that exist, although not totally recommended are those of debt consolidation or filing for bankruptcy, if it has got to such a bad point that one does not have any other options. The bankruptcy issue will not prevent a credit repair situation but may actually amplify your credit woes, hence this should be an absolute last resort.

Debt consolidation can serve in your favor if done correctly, and in a timely fashion. You should however consult a professional or conduct a good amount of research prior to opting for the debt consolidation process, in order to avoid any potential credit repair situation, as this option can possibly cost you more money if not structured and applied correctly.

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