How to Overcome Bad Credit


Overcoming debt isn’t an easy thing to do for anyone with bad credit.

Getting loans to bail you out of financial woes only work like a crash diet. It produces the results you need, but if you don’t change your lifestyle, you will go back to where you left off. Thus, adopting some money-saving strategies can help you deal with financial issues.

Here are clear-cut, everyday ways to improve your credit rating:

Make a commitment to pay off your debts

This is probably the most essential step in overcoming your financial issues. Because the truth is that there would be times when your determination softens and paying off your debts is a struggle. It can be due to circumstances or life events. This is fairly normal but there are ways to get around with it.  Make a commitment to save your finances and do what it takes to follow through.

Be 100% responsible for your debts

Anyone who’s been in debt long enough can attest, that even when you make more money you can still end up incurring more debts. Sometimes when someone in the family gets sick or your car broke down, you have to use up your credit card or apply for loans because you have no savings.

It takes financial discipline and consistency to overcome debt. Being 100% responsible for your debt means that you are fully responsible for how and what you do with your money. It means that you are fully taking care of your finances. This means that you actually have to stop blaming your circumstances and start being able to control where your money goes. Don’t make excuses for not being able to pay off your debts.

Create a budget

Start by evaluating the amount of money coming in each month. Include your income, miscellaneous cash and other financial sources such as child support or alimony. Next, calculate your daily and monthly expenses. List your fixed expenses such as food, utilities, mortgage and so on. Write down your variable expenses like car maintenance, property taxes, gifts and other outgoing expenses. Create a budget based on your income and outgoing expenses and decide where you can cut back.

Find cheaper alternatives to your wants

Scale back on your total overspending by differentiating the nice-to-haves with needs. Cut back on unnecessary expenses by shopping around for cheaper alternatives, negotiating with current servicing providers for a better rate and monitoring monthly expenses by comparing them with your budgeted list.

Focus on boosting your credit score 

Get a copy of your credit report then use the tips below to boost your credit score.

  • Dispute credit errors
  • Negotiate with your creditors to remove the debt that went to collecting agencies
  • Check that card issuers updated your credit limits
  • Don’t close all your credit cards. Leaving one to two pieces of plastic can improve your credit score if you start paying responsibly. You can also use a secured credit card if you’re worried about not being able to pay on time. Just make sure that you don’t whip out your credit card. Keep your utilization rate lower than 30%.
  • Avail of NSW Mortgage Corp’s bad credit loans. We will also negotiate on your behalf with your creditors, solicitors, sheriffs and banks.

If you’re experiencing financial problems we have the right bad credit loans for you. Call us today!

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