To get your finances in order, it's key to create a budget and track your progress. There's no universal approach for monitoring your budget, but if you're in debt, you'll want to take inventory of your finances often and take note of your spending habits at least once a month. The goal is to avoid overspending – and understand how much you spend each month to create a plan to pay off your debts. "This word 'budget' seems to be such a painful word to everyone, but there is actual power and freedom in having a budget in place and having the power to tell your money where to go," Omo says. "It's the basis of your plan to get out of debt."

The best way to consolidate debt is to consolidate in a way that avoids taking on additional debt. If you're facing a rising mound of unsecured debt, the best strategy is to consolidate it through a credit counseling agency. When you use this method to consolidate bills, you're not borrowing more money. Instead, your unsecured debt payments are consolidated into one monthly payment to the agency, which in turn pays your creditors each month. Your credit counselor works with your creditors to try to reduce your interest rates and eliminate extra fees, like late charges or over-limit charges.

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Hybrid loan option: CommonBond offers a unique “Hybrid” rate option in which rates are fixed for five years and then become variable for five years. This option can be a good choice for borrowers who intend to make extra payments and plan on paying off their student loans within the first five years. If you can a better interest rate on the Hybrid loan than the Fixed-rate option, you may end up paying less over the life of the loan.
Do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.
Here is where it all comes together! Rapid rescoring can raise your credit scores quickly. Many of the tactics on this list are highly effective but can take 30 days or more to actually reflect in your credit score. But a consumer can utilize a Rapid Rescore in order to speed up that recalculation of their credit – and raise their score within just days or a week. With a Rapid Rescore, the credit bureaus simply recompute your score immediately, instead of at the next natural cycle date. Therefore, if you’ve paid down debt, added yourself as an authorized user, deleted collections, or added new positive tradelines, it will show up post haste. A Rapid Rescore is invaluable if you’re applying for a business loan, trying to get approved for a mortgage so you can make an offer on a house, or just trying to clean up your credit before a potential employer checks your report. However, you’ll want to enlist some help to take advantage of a Rapid Rescore, so contact Blue Water Credit if you’d like more information or help with any of these tactics!
Step 1: Tell the credit reporting company, in writing, what information you think is inaccurate. Use our sample letter to help write your own. Include copies (NOT originals) of any documents that support your position. In addition to including your complete name and address, your letter should identify each item in your report that you dispute; state the facts and the reasons you dispute the information, and ask that it be removed or corrected. You may want to enclose a copy of your report, and circle the items in question. Send your letter by certified mail, “return receipt requested,” so you can document that the credit reporting company got it. Keep copies of your dispute letter and enclosures.
You can get rid of credit card debt in several different ways. Debt consolidation loans are one way. You can also take out a home equity loan (or a cash-out refinance) from your mortgage lender, or you can open a new credit card and transfer the balances over. The latter might come with a zero percent introductory interest rate, giving you several months or more to pay down your balance interest-free.

American Consumer Credit Counseling (ACCC) offers consumer credit solutions ranging from debt counseling and debt consolidation relief, to pre-bankruptcy counseling and post-bankruptcy debtor education. If you are seeking debt consolidation options, ACCC offers a simple and effective consolidation program that's more prudent and beneficial than a debt settlement solution or taking out loans for debt consolidation. For personalized credit counseling advice and to learn about the best way to consolidate debt, contact an ACCC credit advisor today.

Did you just get a tax refund, a bonus, a raise or an inheritance? Instead of spreading it out and making small extra payments to all of your debts, opt for the snowball method. Consider paying as much as you can towards the debt with the lowest balance so you can reduce or eliminate it entirely (while keeping the account open). This reduces your credit utilization dramatically and can increase your credit score just as dramatically and quickly. Reducing your credit utilization from 50% of your credit limit down to 30% of your credit limit can result in a 50-point score lift, according to the VantageScore report.
How it works: Once you choose the secured card you prefer, you’ll open an account under your child’s name. If your teen is approved, the bank will ask for a security deposit. Most secured cards require deposits of at least $200, but there are secured cards with security deposits as low as $49. That deposit typically becomes their line of credit. For example, if the minimum security deposit is $200, the line of credit will also be $200.

The best way to consolidate debt is to consolidate in a way that avoids taking on additional debt. If you're facing a rising mound of unsecured debt, the best strategy is to consolidate it through a credit counseling agency. When you use this method to consolidate bills, you're not borrowing more money. Instead, your unsecured debt payments are consolidated into one monthly payment to the agency, which in turn pays your creditors each month. Your credit counselor works with your creditors to try to reduce your interest rates and eliminate extra fees, like late charges or over-limit charges.


Your best bet is to call and ask to see if they can put you on a payment plan where you can afford to pay them (even if it’s just the bare minimum a month) or if they will possibly settle for less money. A tip: anything that has your name attached (banking account,utility bills, credit cards, anything you finance, student loans, medical bills, car loans, home loans, your apartment, etc) that you miss a few payments on or don’t pay at all can be reported to the credit agencies and sold to collections companies.
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