Credit Repair After Delinquent Payments Or A Bankruptcy


Someone who is struggling with delinquent payments may not want to consider bankruptcy because it carries such a negative stigma. However, if you are in a downward spiral financially and you can no longer make your regular payments, bankruptcy may well be the very best option because it will allow you to start again.

Being behind on credit payments and not being able to catch up can cause a great deal of stress. Collectors calling you at all times and knowing the money is not there affects not only your finances but also your long-term health. You must also consider that delinquent payments will stay on your credit report for 7 years or more just like a bankruptcy.

While you may consider that a bankruptcy is the last resort it may be the best solution for your financial problems. The stress will be off and you can get started back in the right direction. You will also be able to focus your energies on your income and job situation rather than just the late payments that you cannot make.

A bankruptcy will stay on your credit report for 7 to 10 years but delinquent payments will also. Both are damaging to your credit score but the fact is a bankruptcy will allow you to begin again without the stress while getting farther and farther behind in making payments will only prolong your financial pain. And with each passing year, it will be easier and easier to get credit so your financial life will get better and better.

A bankruptcy may be the best option to turn around a negative financial situation. It does have a negative stigma and may be considered to be the last option but when you start anew you can begin to rebuild rather than just keep trying to catch up.

You can start rebuilding credit immediately following a bankruptcy. While you probably will not be able to get traditional credit you can try to get a small loan from a local bank or credit union or you can also try to get a secured credit card. You may be charged a higher interest rate so make sure that you don?t borrow too much. Make regular payments for about 3 to 6 months and 6 months and then you can probably just pay it off. Make sure that every single payment is on time.

If you opt for a secured credit card you will be required to put $500 to $1000 into a savings account, which will be used as security for the credit. This is an excellent way to start to rebuild credit and many credit card companies offer this type of card.

Your credit will start to improve immediately as you begin to take these actions. It will take some time but you will be making progress. Filing bankruptcy may not be your first choice of action but if you are drowning in overdue bills it may be the only sensible solution to turn your financial life around.


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