There are many different reasons you might find yourself with a bad credit file. Let’s face it, we all go through a bad run of luck from time to time, and it’s often due to circumstances beyond our control. A bad credit file will affect your chances of taking out a future loan and can make things much harder for you.
Life after credit repair
If you have managed to pull yourself back up afterwards, then you should feel proud of your efforts. This is the first step to taking control of your finances. The important thing is to make sure you don’t fall back into the same trap of missed payments or other issues that will see your credit file plummet once more. Here’s how you can take back the control and stay on top of things.
Write Up A Budget
Having a budget is a great way to see at a glance all your incoming money and all your expenses. Add your loan to your budget and factor in how much has to be repaid each week. By seeing it all laid out clearly in front of you, you will have a better chance of staying on top of your loan repayments and ensuring you don’t fall behind or miss one. It’s also a good way to cut back on other unnecessary expenses so you can avoid overspending and work towards paying off your debt even faster.
A great tool to help you create a budget is Debt Consolidations online budget planner calculator. All that you need to do is enter any income and expenses. You will then be able to clearly see where your money goes, and how much you can potentially save. This will help you stay consistent with your spending. More importantly, it will ensure that you don’t miss payments which can lead to those dreadful defaults.
Don’t Take On Too Much Debt
This one may seem obvious, but we all know we can get in sticky situations, or want to take advantage of an opportunity and take out a loan to help. Think twice before going down this route. Too much debt is not only had to repay but also doesn’t help your credit rating. Work on paying off your current debt and save any opportunities you see for the future.
Think about how you manage your money. Do you have more expenses than incoming money? You may want to reassess what you are spending your money on and see if there are any ways you could be saving. Cut down on those takeaway foods, make a coffee at home instead of buying one, limit your social activities or simply meet friends for free activities, such as a walk or run around the neighborhood. If you jump on Facebook, you can join one of the many money-saving groups and find some great tips to help you out.
Start A Side Hustle
It’s the thing to do in this day and age and it can help bring in a little extra money and clear those debts. There are so many opportunities out there. You may have a spare room in your place that you aren’t using that you could rent out? Do you have skills you can offer, such as copywriting, bookkeeping, babysitting, etc.? You don’t have to bring in much, just remember that every little bit helps and can get you out of debt even faster.
One sure-fire way to ensure you never miss another payment is to have a little nest egg of savings set aside for a rainy day. This may seem impossible depending on the financial situation you find yourself in, but you only need to start small and work your way up. Just put away $5 from every paycheque to start. Over time this money will add up. You can add any money you might ‘come into’ throughout the year, such as for a birthday, Christmas, or even from your side hustle above. Having money to fall back on not only provides peace of mind but will also help you avoid falling into the path of a bad credit file again.
Ask For Help
Don’t be afraid to ask for help. If you find yourself in a position where you are unable to make the next payment, speak to family or friends and see if they have any suggestions for you. It doesn’t hurt to ask for help, most people will appreciate that you are trying and are being honest about your situation, which is the most important thing. It’s when you ignore it and just hope for the best that you find yourself in the most trouble.
You’ve done a great job getting your credit file fixed, so make sure you work hard to ensure you are never left with a bad credit file again. Try out some of these tips and take back control of your money.