Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Debt, Credit Rating, Credit Repair, FICO® Credit Scores, and Limiting Luxuries

There is a big difference between wants and needs and when you are faced with excess debt and debt elimination, then the only thing you really need to focus on are your needs and how you are going to pay for them.

You don’t need to own the latest wide screen television or an X-Box or PlayStation. If you’ve got overwhelming debt, then one of the first things you need to do is start limiting luxuries and maintaining and start improving your credit rating, FICO® credit score, and credit report.

Now this doesn’t mean you are going to downgrade your lifestyle at all, because along with all these luxuries that you’ve been purchasing, your lifestyle has been downgraded considerably with the increased stress and financial burden you are faced with every day directly related to your credit rating, FICO® credit score, and credit report.

Now consider how much happier you would be if you didn’t have to pay back all that debt and worry about debt elimination and debt recovery.  Consider how much happier you would be if you didn’t have to think about how you are going to pay the food bill at the end of the week.

Once you start putting these factors into perspective, you can see how the purchase of luxuries that might possibly give you a few moments of pleasure have added considerable  stress and strain to your lifestyle and have actually limited the things that you can do on a daily basis.

Wouldn’t you like to trade in some of those appliances that you never use for less stress and more time to get out and enjoy yourself? Wouldn’t you like to trade them in with a chance to take a short holiday away from the debt worry?

Now is the best time for you to start looking at these luxuries and consider the benefits they have given you and the downside that you are living with.

When in debt, you must limit or eliminate your luxuries and those that you have and don’t need - cash up and use the money to pay off some of your debt. You will be a lot happier in the long-term. 

Bottom Line:  Your credit rating, FICO® credit score, and credit report will have a negative impact if you do not limit your luxuries.

Dr. Robert Miller, Ph.D.
Investigations Analyst
www.TheCreditRobbers.com

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Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Containment of Debt and Impact on FICO® Scores, Credit Reports, Credit Ratings, and Credit Bureaus

Sometimes when you still trying build up your income to cover your outgoings it is quite difficult to keep on top of specific items of debt on a monthly basis.  One such area a lot people have problems with is credit card debt with most people having several credit cards with outstanding debt.

Credit card debt is not something to take lightly.  It has a direct impact on your FICO® credit score, credit report, and credit rating.  Any credit bureau will not allow this debt to go unnoticed.

A technique that you can use while you are building up your income or eliminating other debt is to contain specific areas of debt such as your credit card debt.

Let’s say you have five credit cards and they are all almost at the limit. It’s likely that payments of these will be at various different times throughout the month so with a little bit of planning you can create a situation where you have containment of your credit card debt by using a revolving payment solution.

What this means is you pay off what is required for your monthly payment of one credit card and then draw out sufficient funds to pay off the monthly payment on the next card and so forth. So one card pays the next card and you are containing the debt within each of these cards are not spending any more money on the cards while using one to finance the other until you can start chipping away at the balance.

All you will need to concentrate on is the actual interest portion of the total debt of all the cards for the month.

While this is not the optimum solution, it might be your only alternative until you can get on top of some of your other debt, thus you will need to determine when you’re working on your budget, whether this is something that you will need to do and then you will need to work out exactly how much the interest portion will be and calculate how you’re going to come up with that portion from your income.

Once you have this sorted and can manage this from one month to the next you have contained that particular debt for the short term until you can address the problem.
You will only do this if you have other forms of debt with the interest rates that are higher and you will want to reduce the debt on the ones with the highest interest rates first. It might even be necessary to get a low interest credit card to help you to do this.

As you can see containment of debt is a very serious problem, but a problem that can be managed.   If managed properly, it will have a positive impact on your FICO® credit score, credit report, credit rating, and all of the credit bureaus that constantly monitor all of the above.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

Contact Us: Send a FormMail Message

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