What is credit repair? Repair means
to fix something that is broken. Broken credit means
you have more debts than you can handle. To repair
your credit you need to find a way to deal with
On this web site we discuss the ways you can have
professionals help you repair your credit and deal
with your debts, including credit
13 Wage Earner Plans, consumer
proposals, and, if all else fails, personal
bankruptcy. But is it possible to repair your
credit on your own?
Yes, it is, and here's how you do it.
How to Repair your Credit Yourself
First, determine how much credit repair is necessary.
The best way to do that is get a copy of your credit
report from one of the large credit bureaus such as
Equifax or Trans
Union. If the only negative item on your credit
report is an old $100 phone bill, pay the phone
bill. If the amounts are higher, more effort will
Determine which amounts on your credit report can
be paid off in a reasonable amount of time. Then,
with your personal
budget as your guide, make payment arrangements
with each creditor. For example, if you can afford
to repay $500 per month to all of your creditors,
don't offer the first creditor $500 per month. Offer,
say, $150 per month, so you have additional money
to make deals with the other creditors.
A debt consolidation
loan is another great way to repair your credit.
If you can borrow to repay your old debts, your credit
will look much better.
Of course when you have debts it is often difficult
to qualify for a debt consolidation loan. You may
need a family member or friend to act as a co-signer
until you are back on your fee.
Other options include selling assets to raise the
cash to repay your debts. If you have an old car,
perhaps you could sell the car and use the money to
repay your debts.
The starting point is to determine what you owe,
and then make a plan to repair your credit.