Being in a poor credit situation really is like being pulled towards a black hole. No matter how hard you try, your bills go up, you put more money on your credit card and you can’t make the payments on your loans. For many, it’s a depressing cycle, but it is one that can be broken with some good advice.
It often takes someone with an objective view of your situation to help you see a way out of bad credit difficulty. They can look at your income and spending and see where savings could be made. They can recommend ways in which you could consolidate all your debts so that you only have to keep track of one payment, and they can help you to buy a home, regardless of your credit position.
1. Take a deep breath
Like many of life’s problems, the first step to overcoming your bad credit problems is admitting to them. Many people find it embarrassing to admit that they have so much debt – in fact the unwillingness to talk about financial problems often means that they get worse before they get better. By taking a deep breath and admitting you need help to sort your finances out, you’ve made one of the most important moves forward.
2. Ask for help
Whether you’re looking for a mortgage product, a consolidation loan or just some help with financial planning, you need help from an expert. Mortgage advisers and financial advisers can help you improve your credit rating and your lifestyle by finding ways to manage your debt and paying back the money you owe. Your life doesn’t have to stop because you have debts, but it may have to change so that you can regain control.
3. Follow the advice
Make sure you choose a good advisor – one that’s authorised by the Financial Services Authority (FSA), and that has access to a wide range of products that can help you. These might include bad credit mortgages, which can help you to buy your own home, remortgages that allow you to release cash to pay off debts, or consolidation products that allow you to put all your debts into a single amount. Once you’ve found an advisor you trust, follow their advice and you could see a long term improvement in your credit rating, pulling you out of that black hole for good.
Mike Burridge is with Leybridge Limited, a mortgage advice company that specialises in helping customers with bad credit. Find out more at their Bad Credit Mortgage website. |
|
