If you
suspect that you cannot get a decent loan because of your credit, or would like
to qualify for a better interest rate than you would with a cloud on your
credit, there are steps that you can take right now.
A number of credit
services, some funded by debt carriers, offer personalized service to help you
organize your funds and reduce or pay off your debts. Depending on the exact
nature of your credit problem, you may be able to get quick help, or you may
need counseling, assistance, and a plan to follow.
Taking the first step
is the important thing. The worse your credit is, the longer it may take, but
you will definitely feel better when you whittle away at your mountain of debt
and unpaid balances. The trick is to manage your credit rehabilitation in a way
that improves your credit score, one of the means your credit is rated.
The Consumer Credit
Counseling Service (CCCS) provide free professional counseling and some low
cost services including budget counseling, debt management planning, educational
services, housing counseling, and phone and mail counseling.
Debt
management counseling will help you determine how much you really can afford to
pay on your bills; arrange affordable repayment plans that creditors will
accept; and develop a personalized budget.
Of particular interest is
housing counseling that the service offers. The CCCS is HUD-Certified on the
home ownership readiness; default resolution; delinquency and foreclosure
prevention, and rent/lease delinquency.
You can find more help at Debt Counselors of America, which
has an extensive list of free editorials and suggestions about controlling debt
and offers numerous programs that assist in debt restructuring. They offer a
variety of publications and debt restructuring programs, including programs for
people who are current on their bills as well as for those who are behind.
Like the CCCS, the National
Foundation for Consumer Credit is funded by lenders, credit unions,
community groups and other contributors. This nonprofit network also provides
credit and debt education and counseling for repayment and debt
restructuring.
