My ED Debt – What Options Do I Have For Credit Repair?

My ED debt has several different roots but they all start with the same circumstance. I am a single mother who has to support her family full time. The only way she can make ends meet is by taking care of the household chores such as cooking, cleaning, and paying the bills including her son’s school fees, utilities, and daycare. That leaves very little for her to enjoy herself. She also has to worry about making sure her children are able to go to school and what she will have to do in the way of paying for their education.

Due to this she got a credit card. It was an unsecured credit card that had a low interest rate. However, one of the main features of the card is that you cannot exceed your credit line. If you use the card too much, it can damage your credit score.

This explains why my husband immediately brought my attention to our credit card debt when we were planning to buy a home. It is impossible to purchase a home without some form of down payment. Otherwise, the banks will not be willing to take on such a large debt from someone who does not have the means to pay it back. They are also likely to turn down the loan if my husband has more than his monthly salary (he lives paycheck to paycheck).

So, what did we do? We went for a debt consolidation loan. What the company did was add my husband’s credit card debt into the loan. This helped him lower his monthly payments even more since there were only two payments to make. This helped him to increase his credit score which also improved his financial situation.

Before going further, I want to mention that debt consolidation loans can hurt your credit score. My husband found out the hard way. He borrowed money to pay our house payment. Once he defaulted on the debt and got caught by his credit monitoring service, his score went down a few notches.

This was a lesson my family learned the hard way. Make sure you only borrow what you need. People tend to get into excessive debt and file for bankruptcy. As a result, they cannot take out more loans. As a result, their credit score goes down.

What we did to fix our situation was to get a debt management company to negotiate with our lenders. The first thing they did was to lower my interest rate which lowered my monthly payments. They also shortened the period of my debt and lengthen the time my monthly payments were due. These tactics lowered our total debt by about $4000, which improved my credit score.

If you are having credit problems and think you need help, I highly recommend that you seek out credit counseling services. Credit counselors will help you manage your debt better and develop a good budget. After a few months of working with a credit counselor, I had my first successful payment and my credit score had gone up about two notches. Now, I am over my debt and have my credit back up again. It certainly has made life easier.

Another option for those in a tough economic situation is to use a debt settlement company to negotiate down your payments. Again, your credit score goes down but you pay less than you owe. Debt settlement companies can negotiate your debts down to an amount that you can afford and still make your monthly payments. These companies usually have a high success rate because they are able to speak with creditors on your behalf. This makes them much more likely to get the reduction in debt that you are seeking.

One more option for those having my of debt problems is to go through debt consolidation. Many credit card companies are now offering consolidation programs for those in debt. This works by combining all of your debt into one payment that has a low interest rate. The result is that you only have one bill to worry about. Consolidating also allows you to get out of debt faster and increase your credit score.

For many people, having my ed debt problems means that they have either lost their jobs or can’t make enough money to provide for their household. Both situations make it even harder for people to make their monthly credit payments. Even if you don’t have a job at the moment, it is not impossible to find a good paying job. If you are in serious debt and want to get out of it, make sure that you take advantage of any credit counseling services that are offered to you. The longer you wait to deal with your credit problem, the worse it will become and the more difficult it will be to restore your credit score.