Credit can be so useful. Especially in an emergency, but it can also be such a hard thing to manage and keep in check. Not keeping it in check though, can result in some crunch situations that are going to cause you serious problems in life. So to help you deal with these, read on for some advice.
Pay some of what is owed
One serious crunch situation that is pretty common with credit is not being able to make every payment that you owe. This could be because you have had unexpected bills crop up, or that you had overstretched your finances, or that you have been laid off from work. If the latter is the case check out forbes for some wider helpful advice.
If you do find yourself in this situation, the best recourse is to contact the credit provider as soon as possible. This is particularly important because if you don’t the payment will be marked as missed and this will negatively affect your credit score.
The aim of contacting them is to negotiate a manageable payment for that month. Something you can get some tips on at hbr.org. Ensuring that the credit provider stays happy, and you are not wiping out all of your resources. Of course, it will depend on the individual provider as to whether they will agree to this, but you will only find this out by contacting them. So get on that phone!
Error on report
Another crunch issue that people with a credit account often find themselves in is that there is an error on their report. This is where the company has not recorded a payment being made, or the amount is wrong.
This can be very problematic because it ends up making you look like you are not holding up your end of the bargain, when in fact you are. Meaning your credit score will be negatively affected through no fault of your own. To help you resolve this, it’s worth contacting companies like repair.credit to see if they can recommend a provider that can help you get your credits to score to where they should be. Something vital for any future purchases you want to make.
Lastly, many people that take out credit find themselves in a position where they just can’t make any of the payments they owe. This is more serious than missing a few payments as mentioned above because it will be recorded as continual default on the debt. Something that can have a massive impact on your credit rating and ability to get finance for essential life items like vehicles and homes.
So, if you find yourself in this tight spot, then it may be useful to look into debt consolidation. This is where you hand your debt over to a company, then they pay it off. While you pay them one single amount. This is particularly useful if you have multiple accounts and cards that need settling. As well as, if your payments are too high to make and live comfortably on what remains.
So if you find yourself in your own personal credit crunch, don’t panic. Just review the options above and pick the one that is best suited for the situation that you find yourself in.