Credit Repair Guide - Top 10 Tips
where do you want to be
tomorrow?
- Communication
Don’t ignore letters from creditors. Make sure you promptly respond to their letters and calls. If you promise to make contact on a certain date, make sure that you do, even if it is only to let them know you are making a payment or to advise why there may be a delay.
- Good manners cost nothing, but bad manners cost a lot
There is no use in getting angry and frustrated with your creditors, even if you feel justified. No matter what, make sure that you are polite and courteous. Ideally, you need to make someone sympathetic to your situation, so be polite so that you can keep them on side – even if they are being rude.
- Don't let yourself be harassed
If a creditor, or someone acting on their behalf is harassing you take their name and the company they work for and report them.
- Get everything in writing
By creating a paper trail you can make sure that you have all your facts right and be sure of where you stand. Note down who you speak to, the time and what is agreed. If necessary, confirm all conversations in writing as well.
- Don't bluff
If you make an offer, or promise to do something, make sure that you follow through on your statement. Telling creditors what you think they want to hear will not help your situation, especially if you’re not in the position to complete on your promise.
- Don't threaten bankruptcy
This is a threat that creditors hear a lot and the typical response is to call your bluff. It will not help your position in negotiations.
- Be succinct and precise with your offer
Explain your reasons for your difficulties and then make your offer. Be precise about your offer. Don’t leave things open-ended and open to interpretation. And don’t offer things you can’t provide.
- Getting into trouble
If you do get into trouble and cannot complete on an offer make sure that you contact the creditor immediately and in advance. Try and provide a portion of the funds you promised. Don’t wait until after the deadline before contacting the creditor.
- Protect yourself
If you receive court or official papers make sure that you know how much time you have to prepare any required responses. You may find it useful to consult the Citizens Advice Bureau to clarify your rights and the means to resolve the claim before going to court.
- Be realistic!
Always make sure that your offers are realistic and that you only offer payments you can afford. The majority of creditors are fair and will expect realistic payments within your budget, so make sure that you are up front and fair with them.
