Most people think that in order to repair their credit they need to have a lump sum of cash to pay off all of their debt at one time. Though this seems like a great strategy in theory, the likelihood of this actually occurring is slim to none.

The majority of people will continue to push their credit repair to the bottom of their “to do” list. They justify this process with thoughts like “I will pay it off when I have the money” or “As soon as I have all of the cash I will clear out my debt”. These kinds of thoughts allow people to sit on their debt with a certain level of comfort………….or so it seems.

I know from personal experience that this perceived “comfort” is shallow and superficial. In truth, each person in need of credit repair suffers from an underlying unease and is subtly haunted by the prospect of becoming swallowed by their debt.

So, in hopes of offering a method of releasing some of the tension, I have constricted an easy to understand “First Step” in your credit repair journey.

What is the First Step?

The first step is to collect a complete credit report from all 3 bureaus. When doing this, you want to be sure that all of your scores are included in the reports you obtain, not excluding your fico score.

What to look for

It is important to look for 3 things when you receive your credit reports.

1. Errors In the reporting information.

Occasionally the credit bureaus will make a mistake in your report. For example, they may list other people’s debt within your report, or they may have an incorrect balance on a credit card, or they possibly might have you marked down for a delinquency when you have not been delinquent. These types of errors are fairly common and need to dealt with ASAP.

2. Collection Accounts
Collections are possibly one of the most damaging aspects of a credit report. You should look for these on all of your reports and then contact the collection agencies to set up a payment plan.

YOU DO NOT NEED TO PAY COLLECTION ACCOUNTS OFF IN FULL.

Nearly all collection agencies will be willing to work out an installment plan with you. Tell them what you can realistically afford. Most companies just want to see an effort to make payments on what is owed.

3. Late Payments and/or Delinquent Accounts
If your credit report is showing that you are late or delinquent on certain payments, contact these companies to establish arrangements to get caught up on your payments. This is vital to your credit repair. If you do not communicate with these companies they will send your debts to collections.

So there you have it! No more excuses. No more justifications. It is your financial life and if you do not take the first step in your credit repair process, who will?