How can I fix my credit now?
I am on unemployment after being laid off from my job which was pretty well paying. I am 22 and I have accumulated a bunch of debt over the past 5 years, mostly from student loans, I didn't forsee the economy plummeting before I could get settled into being able to make payments. So now I am getting 435 dollars a week, trying to start my own business in graphic design, and eventually I want to buy property. The problem is I have no way to pay off these things on my credit score that is keeping it so low since I barely have enough for my day to day living. What is my options of holding these creditors off from destroying my credit further, cleaning up my credit so I can get additional credit in the future. I need some help.
Hi cmloomis,
I understand you are going through a tough time. You should first pull out your credit report and make a list of the debts you owe. Contact all your creditors and explain your situation to them. You can negotiate on the debt amount. Request for a payment plan that is affordable.
I would also suggest that, you should try to cut down on your expenses and save to pay off your debts. Make a monthly budget plan. Try not to spend on anything that is not included in you budget.
Good luck to you.
Hi cmloomis,
Is it possible to extend the loan term? You will have to pay a greater interest rate in future, if you extend the loan term, but it will get you out of the present trouble.
Once your business starts paying off well you can also think of a loan consolidation. There are certain benefits of loan consolidation:
1) The monthly payments that you make are lowered.
2) There is fixed interest rate.
3) You make only one payment for various loans
4) The flexible payment structure is very helpful during hard times.