Want to know how to repair your bad credit debt? Well read on! For people experiencing credit problems, hearing the words “repair your bad credit debt” can seem like an impossible task. Then there’s companies who promise to show you a “magical” way of restoring your bad credit reputation for a fee (of course). The hassle of going through these companies (and I won’t mention their names–at least not in this article) can be more stressful then having bad credit. However, though it may be time comsuming, repairing your bad credit debt does not have to be so aggravating. Everyone experience pitfalls at some point in their life and sometimes things happen that is beyond our control. Consider your bad credit debt as really uncertain credit that has its own story. And if that last suggestion didn’t encourage you, well still be at ease knowing you can repair your bad credit debt. All it takes is a little of your time and effort.
Here are some steps for repairing your bad credit debt. Following these steps can set you on the road toward credit repair and the destination of good credit.
- Obtain a copy of your credit report from all credit reporting bureaus (Equifax, TransUnion and Experian)
- Review your credit report thoroughly to ensure accuracy of bad credit debt
- Dispute an discrepancies
- Write down or highlight lenders (name, address, phone and money owed)
- Contact each business/lender to negotiate settlement payoff amount
Making contact with creditors Contacting companies to repair your bad credit debt may seem intimidating. Don’t let fear discourage you from repairing your credit. Think about it, at least you are contacting them in an attempt to resolve your debit rather than them trying to hunt you down and using scare tactics to get their money. Here are some tips when contacting creditors and negotiating settlements to repair your bad credit debt:
- Be honest with yourself regarding your current financial position.
- Only agree to pay what you can afford and keep your end of the deal. Pay as promised.
- Get settlement terms in writing (some companies are resistant, but ask anyway and be persistent)
- If you can’t get the settlement terms in writing, make sure to get the name and number (even Agent ID# is possible) of who you arranged the settlement with.
- Get a calendar and write down the amount and due dates of the settlements (so you can plan to pay on time).
- Keep records of your payments (money order receipts, copy of cashier’s checks, printout of bank statements, etc.)
- Obtain another copy of your credit report to ensure the company has reported that the debit has been paid in full.
- Keep in mind that you are doing this to repair your bad credit debt.
How to obtain a free credit report annually To obtain your free credit report you can either call all three credit bureaus and requesting your credit report or you can visit