Dealing with bad credit can be a living nightmare. If you always feel short of money and constantly worry about your bank balance sliding into the red, then you need to stop and take stock. Dealing with debt can be difficult but, if you pledge to get your finances in order in the early stages of debt, you can clear it relatively quickly and ensure your credit rating is almost entirely unscathed. Here are the best ways to deal with bad credit.
Budget
If you’re only a couple of hundred pounds or so in the red, better budgeting may be able to help you pay off your overdraft over a couple of months.
People often get into debt and bad credit because they haven’t budgeted properly and are unsure of their incomings and outgoings. By using a thorough budget planner (such as this one), you’ll be able to work out your incomings, outgoings and expendable income levels.
This way you’ll be able to see not only what you’re spending, but also where it’s going. Often, by doing this, you’ll be able to cut your expenditure in certain areas, bringing your spending under control and slowly eliminating your debt. All you have to do is stick to it.
Take Free Advice
If your problems are worse than that, then you’re much better off seeking independent advice. Don’t just sit on the problem and keep it to yourself. Things will only get worse that way.
Your family are a great place to start. Even if they can’t provide financial help they can provide assurance and put your mind at rest. If your family aren’t financial experts though, or if you need additional advice from dedicated experts, you can arrange an appointment with your bank or the Citizens Advice Bureau. They’ll be able to help you deal with bad credit and debt.
Consider Loans
Finally, if you need to pay off an overdraft sharpish, then you can consider a loan. Of course, this will come at a cost to you because loans for people with bad credit can be expensive due to high interest rates. However, specialist providers such as everyday loans do offer them, so if you’re turned down by your bank, ensure that you’re aware of other options.
This can either help you pay a bill or consolidate all of your debts into one, manageable repayment. However, remember that it comes at a cost and be sure you can afford the repayments.
There we have it – 3 solutions to bad credit. Make sure you select the one that’s best for you.