How do I start over?

Question

How do I clean up my awful credit? Is it better to file for bankruptcy?

Answer 1

I think it just takes time. If you still have credit cards, start making the payments on time, or use a counseling service like Care One, so that they can get everything consolidated and hopefully you'll get lower payments out of the deal. They lowered my payments by a little bit, not much, but once you complete the program they send a letter to your creditors, etc.
On the other hand, my brother filed for bankruptcy, and not long after that, Radio Shack gave him a credit card, and he started rebuilding his credit.

Answer 2

We filed bankrupcy 5 years ago and It is VERY difficult to legally reestablish your credi to a good standing.

Do what ever you can to pay off what you owe.

Filing bankrupcy will actually HURT your credit for years to come. Every loan or credit card you may get later will cost MORE in interest.

In the long run.. clean up your credit by paying min payment plus $2.00 on all of your cards but one. Pay half if you can or as much as you absolutely can on the lowest balance debt until it is paid of. Then cut up the card. Always make payments on time!

Start on the second lowest bill. Pay $2.00 more than due on all outstanding bills and pay the most you posibly can on that one.

Starting with the lowest balance bill and working your way to the most expensive will make the process seem like it is going faster.

By paying $2.00 more on your credit card payments it shows on your credit that you paid MORE that what was due.

Makes you look better to creditors. I would not suggest bankrupcy. If you have a home or cars you can sell and pay down/ off balances and THEN start over that really is the best way. Good LUCK!

Answer 3

Filing a brankrupcy is definitely a bad idea. You'll loss your financial ability and flexibility. You'll loss almost all the opportunity!

Why not work out a restructuring plan for your financial. List down your expenses (all of them). Cut expenses of critical catagory immediately! eg, sell your 2nd home if it doesn't really helping you in earning any money now! or sell your car if it is not a compulsary for you to own a car to carry out your work. Try car pool if you definitely need to drive to work!

Stay at home at all time, no entertainment out from the house until your financial cash flow is positive. So what do you wanna do at home?
Start your internet business immediately, starting building your fundamental of positive cash flow!

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When you are not affordable to get whatever you want, it is a prove that you are financially insecure. Work in the private sector is good but, if you are still young try to make money with every single seconds that you have. E.g: Work at home after your working hours or during weekend. Go for the internet business, which requires less of your time and the one that will not make you feel headache with web designing, or which require IT knowledge. Second, choose the internet based company which offer you the opportunity and at the same time giving you the convenience to start the business. Third, choose the business, which does not require big money to start it.

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Remember, You CAN'T guarantee whether you will get many fish or not by spreading your net into the sea, but u CAN guarantee that there is no fish at all if you never spread your net into the sea.

Now you are spending your time creating positive cash flow. Hope you can get out of the financial problem soon.

Answer 4

If you have the discipline to create a budget and stick to it, than fixing your credit is better than doing a bankruptcy. I had no choice, no job, full time student, loss my wife (went back to women) and had around $40,000 in credit card debt on cards in my ex's name only. I had to start over and waited until after graduation to start over with credit. I have paid off my car and have started to take out small loans that I can pay back quickly if needed. I also have student loans that I am paying on. It is going to take me years to get back to where I would want to try and buy a car or a home. If you can reduce your living to ketch up on your bills and work on a payment plan. I found out that if you called your creditors, than they usually work with you. I have a $19 dollar annual fee on a credit card that they just raised my limit to $3000.

Answer 5

It's much harder to get a chapter 7 nowadays.. but that would start you over, erasing all debts, except for student loans and taxes.


why bother cleaning up your credit, just dont borrow money and you dont need credit. What are you doing to do, clean up your credit so you can borrow more and get right back in the same situation?

Answer 6

I need to do the same thing. My credit is terrible.

Answer 7

creditboards.com ... do yourself a favor.. check it out