You may have a poor credit report but don't worry; that doesn't mean you won't be able to get credit. The standards for granting credit are not all the same with different creditors. In fact they may differ quite widely. Some look at your whole history. Some, on the other hand, are concerned only with your recent financial dealings and may grant you credit if you are now paying your bills regularly. In fact it might be a good idea for you to get in touch with them informally in order to ascertain what their standards are.
If you lack the necessary discipline to stick t a budget or keep track of your bills and payments you might consider getting in touch with a counseling organization. Many of these are free or low cost non-profit and are there to help people who have similar financial problems as yourself. Remember you are not the only one to run into trouble - if that is any consolation.
However take care, 'non-profit' does not necessarily mean that its fees are affordable or even legitimate. Some of these organizations charge high fees,or attempt to hide such fees by pressuring you to make 'voluntary' payments. Which, of course, only dumps you with even more debt. Avoid such outfits.
Reputable organizations of this type can help you in managing your financial troubles and help you develop a budget and free educational materials. Their counselors are well versed in all matters of credit, money and debt management in general. You will discuss your financial situation fully with them and, with their expertise, you will hopefully develop a completely personalized to resolve this situation. An initial session of this type will normally last an hour or so with, usually, as many follow-up sessions as may be needed before you have nutted out a promising program.
Do some checking around when looking for assistance of this kind. Many credit counselors offer their services through local offices, by phone, or on the internet. I f you can, try and find one that offers in-person counseling. Many un iversities, military bases, credit unions, housing authorities and branches of the US Co-operative Extension Service have non-profit credit counseling programs. If you are unable to avail yourself of any of these then you could try your financial institution or your local consumer protection agency. Failing all the above, bite the bullet and tell your friends and extended family of your money problems - you might find them to be excellent sources of information and referrals. And, if you get lucky you might just dig out on a branch in your family tree a long forgotten rich uncle with a prosperous sheep station in Australia.
But, failing this putative uncle and with bankruptcy looming as the only option, be aware of a change in bankruptcy laws. You must now get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. Check http://www.usdoj.gov/ust (the US Trustee Program) for a state-by-state list of government-approved organizations.
For more information, see Knee Deep in Debt and Fiscal Fitness: Choosing a Credit Counselor at ftc.gov/bcp/conline/edcams/credit/
Michael Perrin
[http://felicitasio.com] (loosely translated as 'Oh frabjous day') for more musings on the ubiquitous credit card and gateway to the 'Credit Secrets Bible” a must read for those of us with a credit problem -- and who doesn't have such a problem?
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