Many folks would like to fix their credit on their own. This is not a problem if you can wait for a year or longer in most cases. The long way to fix your own credit is to make payments on time and get you debt to credit ratio down to about 40%. For most people this alone will take longer than a year. If you need your credit to be fixed because you are trying to get a mortgage, then the best thing to do today is to take a look at all of your credit card debt, and make a plan for yourself
The One Year Self Credit Repair Plan
Dave Ramsey came up with a good strategy, although it is not his, he adapted to make it a wonderful option for the average individual. This is a 123 year plan which snowballs your Credit card payments in order to get them all paid off in 1 to 3 years. To do this the right way, you absolutely must make your payments on time. Look at the credit card that has the lowest balance, and put any extra monthly income towards that credit card balance. On the month that you make your last payment, if you were paying $300 on that card, role of that $300 payment into the card with the next lowest balance, so the total payment might be $500 a month. Continue doing this until you reach your highest debt payment, which could be a car payment or a mortgage. By the end of this, if your mortgage payment was $1200 a month, you might not be paying $2000 or more per month after you have snowballed all of your payments
into your mortgage.
Building Momentum on Credit Payments
The key factor in this novel plan is to make sure that once you have paid a cart off, that you continue using that money to pay other debt off instead of towards other expenses or luxuries. As you work on compounding your payments towards finally getting debt-free, your credit will not only raise, but you will be debt-free! This is the best thing you can do for yourself and your debt.
Well this plan is not necessarily a quick one, it is definitely a good one for getting out of debt. If you want to quickly fix your credit score, give us a call here at new day credit repair, we will give you 50 to 100 points in 3 to 6 months. Looking forward to hearing from you! (866) 368-8828