Dealing with bad credit is definitely depressing. Sometimes it feels like, no matter how far you climb out of debt, you’re still in the hole. But, debt is also a normal part of life. Most people are dealing with some form of debt, from school loans, to home purchases, to bad financials decisions in the past. The only thing you can do about bad credit, though, is not let it ruin your life. In fact, by taking some steps to change your perspective, there are many ways you can use your bad credit situation to take new strides in your life.
1. Use poor credit as motivation to push harder.
Sometimes it takes a big tragedy or huge mistake to find the power to move forward in a new way. Instead of constantly seeing a bad credit score as an inevitable burden that will be hanging over your head forever, think of it as a new starting place in the race. You will have to run faster and push harder to get where you want to go, but this kind of motivation can often lead people to places they wouldn’t have reached for without that major kick start to get them going.
2. Prioritize your finances more intelligently.
When you’re dealing with debt, you have to take the time to make a serious plan if you ever hope to get out. But, this is not a negative thing; it is only positive. Many people simply exist without carving out any kind of financial plan. And, even if their credit is sound, they may not have the discipline to save, prioritize, and account for their spending. With a goal to change your credit, you now have a very clear outline for moving forward.
3. Apply for special pay-off programs.
Having bad credit will not help you get a loan or buy a car, but it will offer you access to some financial planning assistance. There are plenty of centers for relief and counseling for those dealing with large debt and poor credit. Looking into these types of programs can help shed light onto the reason behind your financial issues, connect with others working toward their own financial stability, and help piece together a plan for the future.
4. Learn early-on about the realities of debt.
Making mistakes is often the only way to really learn. And, believe it or not, some mistakes are best made early in life. If you are dealing with bad credit, just know that understanding the realities of debt now could be much better than having to learn about it later in life when the stakes are higher. It’s much better to get that learning out of the way now than to make huge mistake with a future business deal or major purchase.
5. Share your knowledge with others.
Getting out of a bad credit situation and living to tell the story is definitely something worth congratulating. And, with so many people in debt themselves, this is also the perfect opportunity to share what you know and help others. There are plenty of opportunities to even make some extra income by publishing and lecturing on how you, personally, got out of a huge debt.
Stella Walker is a full time freelance writer and blogger and frequently contributes to Creditscore.net. She specializes in personal finance, entrepreneurial advice and independent business topics. Please feel free to leave any questions or comments for Stella below!