While nobody wants to be in a financial pickle, it is something that can happen to anyone. There might have been some unexpected expenses you suddenly had to cover or perhaps you didn’t keep an eye on your budget as you should have – no matter what the reason is, there is, luckily, a way to fix it.You might not be able to enjoy a flawless credit score overnight but at least you’ll have a plan to stick to and a bright future in sight. That is, after all, all that really matters as long as you commit to following your plan and fixing your finances from now on.

Here is a handful of expert tips on how to get back into your creditor’s good books so that you can not only get some peace of mind, finally, but also enjoy all the perks that come with having a good credit score.

The rich doe tend to get richer, however unfair it may be, and a good credit score is a foundation you need to have in order to prosper financially.

First: Calling the creditors and negotiating

You probably know very well that the worst you can do is to avoid those dreaded phone calls from the creditors. They are trying to get a hold of you for a reason, after all, and all they really want is to have a plan that works for you so that they can get their money back.

This is going to help you out tremendously as well, though, so pick up the phone and brush up on your negotiation skills first. The point is that, if you have something to bargain with, you might, in fact, be able to write a bit of your debt of and look towards a much brighter future.

You should have a lump sum ready at hand, however, as this is one of the few ways you might be able to sway the creditors. They want their money back and have, most likely, encountered numerous people before you who will never pay them back a cent in their life; if they can at least get a lump sum secured, they’re much more likely to help you out in return.

Consider if you’re able to use some of your savings, ask a family member to help you out, or consider getting a short term loan in order to set things straight. Since this is to fix your credit score, it’s important that you stay on top of the down payments from now and never miss that deadline – otherwise, all of this will have been for nothing.

Next: Working out a better budget

While you know better than anyone the reason you got in this financial situation, in the first place, working out a better budget certainly won’t hurt your future finances. Now that you’re keeping an eagle eye on your bills and never missing a due date again, you might find that your expenses have increased a bit. This is a good thing, though, as long as you continue paying those bills.

Begin your new and healthier financial life by having a look at this article to learn more about how you should budget when you have a bit less money to work with. If you happen to have a bit left at the end of the month, it’s definitely going to feel great when you can safely tuck it away in your savings account.

The savings you manage to build up from now on should, hopefully, enable you to create your first emergency fund. This is the essence of financial security and you’ll feel so much better when you know that you have a couple of paychecks put aside for those emergency dentist appointments or to pay off some other bills you may not have taken into consideration.

In the end, an emergency fund will keep you from getting in over your head, financially speaking, and you’ll never have to miss a due date and get those creditors on your neck again. It’s the kind of stuff that helps you to sleep a bit easier at night.

Saving, budgeting and finding new ways to make more money are all parts of what makes households prosper and keep them from struggling. That’s why you need to prioritise the money you pay yourself, in terms of savings, and value the relationship you have with your bank.

It just makes it a bit easier to improve your credit score, get offered a credit card with a ton of benefits and be pre-approved for a loan you know you’re going to need, in the future.

By Erica Buteau

Change Agent. Daydream Believer. Maker. Creative. Likes love, peace and Jeeping. Dislikes winter, paper cuts and war. She/Her/Hers.

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