If you have a bad credit rating to your name, then obviously your name is blacklisted. In order to regain credit, you have to take steps to repair your credit scoring. The only way one can do this is by clearing any outstanding bills you may have against your name, and home. The best way that one can go about doing this is by gathering together every outstanding bill you have.
Go from the smallest to the largest bill then sit down and work out, as best as you can, how much you can reasonably afford to pay off any outstanding bills. Do this only after you have worked out what money you have coming in, and what money you have going out. What are you left with after paying for essentials such as food, electricity, gas, water, insurance clothing and such like?
By the amount you have left you should be able to work out whether or not there is enough money to pay what you owe. The next stage follows in that you should contact any company that you owe money too. This is to arrange to pay them as quickly as possible. If you find that it would be impossible to pay off your debt at the original rate, again, contact the said companies to try and rearrange a repayment plan – but at a smaller rate, and over a longer period of time.
If you are one of those people who have ignored the letters that have arrived from companies ordering you to pay back what you owe, then getting them to rearrange a revised repayment plan could be tricky. Any company that is owed money tends not to like being made a fool off – especially if you have been ignoring their letters for repayment of the debt. They do not take too kindly to people who abscond on what money they owe.
Yet, if you find yourself in deep financial trouble, with your name blacklisted, you can, [in many cases] stop your debt from being passed on to a debt collecting agency. All it will take is a phone call explaining your circumstances to whichever company you owe money too. They will probably ask for a breakdown of your money coming in, and going out. They will then ask for proof of this which you must send to them [photocopies of your bills].
If, after looking at your finances, the company agrees to a repayment plan with you, they will then send you the relevant documents/contract which must be signed by you. On this document will be a revised repayment plan, the day and date on which money will be taken from your bank account. Obviously, this amount should be smaller than what you where originally paying, and the timescale in order to pay the debt off, should be longer too.
You must remember that your name will still be blacklisted while you are paying off any debt, and only when the debts are cleared, will you then be credit-worthy once more. Companies appreciate it a lot more if you get in touch with them straight away once you find yourself struggling. They do not appreciate you hiding and ignoring their calls, because the longer you leave it, the worse it will be.,and the more the debt will grow.
If, after rearranging to pay off your debts you abscond again, then the said company/s will have no other alternative than to pass on your debt to a debt collecting agency. These agencies are ruthless and specialize in regaining money back from difficult customers. They represent the said company/s and will hound you until you have paid back what owe. Court action could also be taken against you in which you will have to pay all court costs [plus the original debt and any APR added on] if you lose the case.
Yet, once all your debts are paid in full your name will be cleared once more, and you will be credit worthy. Never hide from what you owe. If you find that you are having trouble paying back what you owe, get in touch with the company you are involved with. Speak to them at the earliest opportunity, explaining your predicament. Nine times out of ten, they will appreciate you getting in touch, and will be more than willing to help you – rather than you having to beg them – because you have been ignoring their letters for so long..
This is the only sure-fire way to repair your credit. Pay off what you owe on time, every time, and never leave it until it is too late to do anything about it. Only then, will you clear your name from debt and repair your credit.