If you or you & your spouse have bad credit, there are a few things that can be done to fix the problem. It may be hard to get started back on the right track but it can be done no matter how bad your credit may be at the moment. When the time is appropriate, you can find out how to qualify for unsecured personal loans.
WORK WITHIN A BUDGET
It may seem like a simple thing, but working within a budget can significantly help with your personal debt. First you will need to know the minimum amount of your monthly take home income. You should write the amount down first on a sheet of paper. Next you will need to write down your recurring bills, such as electric, heat, water, different insurance payments, minimum amount of gas for vehicle, and property tax or rent. If you have property tax to pay, even though it is usually paid twice a year, you will want to divide it up into monthly amounts. When you put away property tax in monthly amounts you will not have to worry about where you will get the money to pay the tax. After you have subtracted out all your recurring bills from your monthly income you should put some money away into a savings account for emergency or unexpected bills.
PAYING OFF BAD DEBT
Once you know how much monthly income is left you will want to start paying off your outstanding or bad debt. First you will want to know who you owe and how much the total is for each bad debt. You should start paying off the smallest one first. This way you can get rid of some quickly and start to improve your credit. When you get ones paid off you will have a weight lifted off of your shoulders. It will feel great to get the bad debt paid off.
If there is interest still being added to your bad debt, you can talk to the place you owe the money to see if they will stop adding interest to it. Some places will work with you to help you pay the debt off. Those places may even offer you a percentage off of what you owe if you pay so much in installments and not miss a payment. This definitely helps to pay off your personal debt sooner than expected and can save you money. If you do get a percentage off of what you owe you may end up having to claim the amount you did not have to pay as income at tax time.