Losing a home to foreclosure is a traumatic experience in two ways. Losing your home, the place you planned to set down roots and make your own personal history in inflicts tremendous emotional trauma. Working hard and struggling to save your home is an exhausting and emotional journey for most people.
On the other hand, your credit suffers trauma as well whenever you lose a home to foreclosure. It's more difficult to rebuild credit after foreclosure because the process can leave it in complete disarray. However, with diligence and patience, rebuilding credit is possible by taking financially sound steps. Here are a few of those steps you can take to repair your credit after foreclosure.
Adjust Your Spending
Cleaning up your household budget will help your credit score, which took quite a hit with the foreclosure, get back on track. To ensure that you don't sink into deeper debt and that you start moving forward financially, you will need to adjust your spending habits based on your current financial situation.
• Download a budget worksheet (there's an excellent one here: http://www.newyoucreditrepair.com/tools.php).
• List all income.
• List total monthly expenses.
• Calculate your net income (total income minus expenses)
• If your net income is negative or too low, adjust your monthly expenses by reducing costs where possible.
After setting a reasonable budget you are willing to follow, you can proceed to the next step.
Keep Paying Your Bills
Even when you are not in debt, keeping up with your bill is essential. It becomes even more important when trying to repair your credit. See the "Debt Reduction Calculator" area of our site (http://www.newyoucreditrepair.com/tools.php) for some helpful tools that can help you figure out how to keep paying down debt while staying current on those pesky bills that keep piling up, including
• A credit card tracker tool to clarify your debt situation
• A credit card paydown tool to set up a plan to eliminate your card debt
After a credit disaster, not incurring new debts and past dues is as important as paying down debt, in order to recover properly and at the shortest time possible. Modest reductions in your current debt load, as well as paying your debts on time will definitely help improve your credit score.
Next time, we'll take it to the next level and discuss a "get out of debt" plan and where you can get assistance if your DIY efforts aren't enough.
New You Credit Repair offers a variety of uniquely effective solutions to common financial problems. Once we review your financial situation, issues and goals, we will tell you which services we recommend for your specific situation, and where you should start. Call 866-403-0248 or go to http://www.newyoucreditrepair.com for more information.