After Foreclosure How Do You Rebuild Credit?

After Foreclosure

For most people a foreclosure is a very traumatic and stressful event. Many people that have been part of a foreclosure report that they are mentally exhausted after the foreclosure proceedings have ended.

Many people believe that with foreclosure their debts have been erased and they can begin fresh. But this simply isn't the case.

If you have lost your home due to foreclosure, it is a near certainty that your credit rating has been adversely affected. Fortunately credit repair after foreclosure is a real possibility so long as you do not fall into the same trap in the future. <

Right after foreclosure you need to take steps to rebuild your credit. The steps are easy but many people find them difficult to stick to.

The first thing you need to do is write out a family budget and actually stick to it no matter what. Debt and financial problems are often times caused by excessive household spending. After you have sat down and written out your household budget, you need to start marking your calendar for dates when your bills are due. When bills are due make sure that you pay them on time it is a critical step to rebuilding your damaged credit. Not all of your problems are manageable by you and your family. Often times it helps to have an outsider help you manage your finances. If you are a member of church, for example, you will likely find that many church members will assist you with your finances free of charge. Discussing your financial matters with an outsider is embarrassing for many people and is therefore usually avoided. If you are adamant about improving your credit you really need to get over your embarrassment. A person experienced with financial planning can truly offer a lot of help to you and your family.

Repairing your credit takes time, especially after something like foreclosure. Family counseling won`t improve your credit but it can help reduce the stress experienced by your and your family. Regular counseling sessions can be a great way to learn how you developed the habits that led to foreclosure.

Going through foreclosure does not mean that your life is ruined forever, but having poor credit can keep you from buying the home of dreams in the future. Believe it not, your credit score can even affect your ability to get a better paying job and even receive promotions at your present job. Your car payments will also increase if you do not take action to repair your damaged credit. The important thing to remember is that your credit is fixable but it will take some time to get your credit back to where it once was. With a little patience and planning you will have your credit restored in no time.


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For more related articles read these pages

  • The Effects of Bankruptcy
  • Debt Collectors and Your Rights.
  • Debt Consolidation plan free yourself from debt
  • Why Do So Many Of Us Have Money-Management Problems?
  • Do you spend your money wisely? Or are you financially insane?

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