Credit Restoration

Originally I was in similar place as you are. My first suggestion is look at your debt Total - All Debt. Are you current on all your pmts or are you behind. Debt is not bad for overall credit score unless you are not paying it. having more credit card and loans out there will change your debt to income ratio but if you are current it shows a good history and that even though you accumulated a lot of debt you are paying it off timely.

Add up your debt total.
Find out any current interest rates on loans ad CC debt.
Make sure you are current.
Their are several methods out there to helping get it paid down.
If you current and your debt amount is not extremely high you might consider paying it off in the traditional manner. You may choose to pay off more than one amount at a time.

If you are current and want to pay somewhat traditionally I suggest make all the minimum pmts plus interest every month. If you find you still have extra left over after all the bills are paid I suggest making another payment on the account with the highest interest rate. Being able to make a double payment on one account will allow you to pay off that account sooner. Once it is paid you move to the next one and so on.

You can also contact the credit card companies and try and get them to lower your interest rates. This might work even better if you are current.

One other option is if you are a property owner you can try and use an equity loan to pay off the debt and then just pay it back as one pmt to the bank. The interest rates will probably be better and there is a tax deduction with that.

One thing to look at if you choose to consolidate your loans is School loans sometimes have really good rates. You might not want to lump an education loan into a refinance of a house or equity loan.. depending on the interest rates.

These are just a few suggestions but not knowing more details it is hard to give you more specific options.


Others may have different opinions.. These are some of my thoughts

Kyle