Credit Building After Long-Term Unemployment
Being out of a job is not totally bad and uncommon. What is bad and common is the low credit that emanates from a long period of unsteady income. This leads to spending decisions that push your credit into a difficult angle and need for credit building. Leading to a low credit score that scares creditors and even prospective employers. Don’t be worried, you can still rebuild towards recovery as soon you get a new job. Fresh Start Credit believes you can go from that low credit score to having credit scores amongst the top 18% by going through these simple steps;
1. How Much Is Your Net Income?
We don’t need to know the answer, keep it to yourself. You’ll need it to determine the lifestyle it can afford you. Ascertain your net income through your first paycheck when taxes and other deductibles have been sorted out. With a true picture of your income level, you’ll be able to plan on what should go into the rebuilding of your credit ratings. Don’t make the mistake of spending above your limits, it must always be below your income.
2. Work Out A Budget
Having your income and known expenses in mind, create a budget that’ll accommodate your plan of rebuilding your credit. You can start out by paying off your debt using the minimum monthly payment plan to ease the burden on your income. Before you start to pay off your accumulated debt, do an assessment. Know all of your expenses and which you can reduce or do away with. You’ll be left with some amount that must be committed towards clearing off debts.
3. List Out All Your Debts
Scary, right? We know it is. You just have to do it to ascertain what you are going to settle in the coming months. Knowing the total value will help you work out a repayment plan to aligns with your income. In developing a list, separate the current ones from those overdue. For the ones already overdue, note the value of delinquency with the period overdue in months.
4. Get Off Your Credit Cards
That’s what got you’re here and cannot help in credit building. You can only make it worse if you are still doing the same thing while expecting a different result. You need to quit living on your credit cards. Draft out an expenses plan using your income since you already have a sort of take-home pay. It is definitely difficult to be independent of your credit cards after relying on it so much. However, there are no other means to rebuilding than to quit being too attached to your credit cards.
5. Know Which to Pay First
There are different opinions when it comes to payment of debt. However, you need to conduct a close appraisal of what needs to be paid. You may have to contact your lender or let a qualified Fresh Start Credit Repairer handle the rebuilding. It will cost you less while you get faster results.[contact-form][contact-field label="Name" type="name" required="true" /][contact-field label="Email" type="email" required="true" /][contact-field label="Website" type="url" /][contact-field label="Message" type="textarea" /][/contact-form]