Being a single mother may cause you to face a lot of financial struggles. There are a lot of bills that you need to pay while you also take care of the most basic needs of your children.
If you are already burdened with huge piles of debt, then it is advisable for you to learn more about credit tips single moms need to undergo credit repair. This will allow you to know exactly what you need to do at these trying times. Among the most effective credit repair tips that are available for single moms like you are the following:
Know Exactly Where You Stand
This is considered to be the most important thing that you need to do if your aim is to improve your credit score and remove the negative remarks in your credit reports. You have to spend time writing in a piece of paper the debts that you owe together with the payments that you make for each debt every month. It is also advisable for you to list down how much you usually spend every month for the essentials like food for you and your children, school expenses of your kids, personal care, rent, power, gas and car maintenance. You should then add your minimum expenses per month and your debt payments every month. After that, you need to determine your income. You have to know exactly if your spending budget is less or more than your income. If your spending is more than your income, then it is advisable for you to start creating a good budget so you will no longer bury yourself more in debt.
Resist Credit Offers
This is one of the most useful credit tips single moms need in order to repair their bad credit. When attempting to undergo fast credit repair, you have to make sure that you do not spread your financial obligations wider or increase your monthly payments. It is advisable for you to politely refuse your credit companies if they start to offer you deals that are only capable of increasing the amount of your debt.
Review Your Credit Reports. It is advisable for you to grab a free copy of your credit report and review every bit of information present in there. You have to know exactly what causes your score to be significantly reduced by spending time checking out all of the details present in your report. It is also important for you to figure out if there are any erroneous information in the reports. If there are errors, then you should start disputing them to the major credit bureaus. This will allow you to eliminate such errors while also raising your score along the process.
Look For a Reliable Debt Settlement Company
This is one of the most effective credit tips single moms need when repairing their credit. The debt settlement company will work by negotiating to your creditors for the purpose of lowering your overall debt. If your creditor agrees to the request of your debt settlement company, then you will only be required to make a single payment in order to settle your debt. Once your creditor receives your payment, then a report saying that you have already settled your obligation will be submitted to the credit bureaus. This will be a major help in bringing your credit score up.
Contact an Effective Credit Counseling Agency
Credit counselors are considered to be extremely useful in terms of reducing your monthly payments and in creating an effective debt repayment plan. Although it would take a long time for you to settle all of your debts through this option, you are guaranteed that there will be a few dollars left in your monthly income and these can be used to settle other bills. Just make sure that you deal with the most reputable agency so you can avail of the best kind of service. You may consider asking your close friends and relatives for recommendations. It is also advisable for you to check the Better Business Bureau so you can obtain a list of reputable credit counseling agencies.
Keep Your Credit Card Balances Low
This is one out of the top 6 credit tips single moms need to repair their credit that is capable of working wonders. When trying to fix your credit score, you have to make sure that your credit cards carry balances that are below fifty percent of their limits. Make sure that the balances are only between the thirty to thirty-five percent range. This will allow your credit report to show a history of having a low percentage and this can definitely help in raising your score.