How To Repair Your Credit: Step One — Resolve Your Debt Burdens
If you are worried about repairing your credit while your debt load continues to stand in your way, the first step is to resolve that debt. Until you resolve your debt, your debt-to-income ratio may be too high to allow for credit repair to be a real option.
For many people, the most direct and advantageous method of taking care of burdensome debt is through bankruptcy. Having a bankruptcy on your record may be much less damaging than defaulting on loans or retaining a high debt-to-income ratio.
Chapter 13 debt reorganization will allow you to consolidate your debt into one monthly payment and repay at a a rate you can afford. Once you complete your Chapter 13 bankruptcy repayment schedule or obtain a debt discharge through Chapter 7 bankruptcy, the next order of business is to restore a healthy credit rating.
Reducing your debt-to-income ratio is critical. Using credit responsibly once again is also important — even if that means starting over with a secured credit card. Once your debt load is reduced or gone, and you keep it down through prompt monthly payments after using credit again, you can be on your way to a strong credit rating again.
Immediate Debt Relief And Stress Relief For The Honest But Unfortunate Debtor
Has your debt gotten out of control — and your credit rating taken a hit — after flooding triggered by a hurricane, a divorce or job loss? Richard Banks & Associates has been guiding burdened debtors to debt relief and credit repair since 1974. We recognize that you no doubt believe in financial responsibility and want to make a good faith effort to repay the debt that is harming your credit rating. We will never urge you to file bankruptcy unless we determine, after reviewing your financial big picture in detail, that it is the right solution in your case.
Also see our bankruptcy FAQ and our bankruptcy practice center.