You should consider how to build credit using good money management skills today. Your first step is to keep a record of outgoings and use a strict budget that you can stick to. Bankruptcy and debt consolidation may add more costs to an already bad situation. You will have to deal with more expenses, high interest and repayments that may not be enough to satisfy your creditors. This can be stressful and worrying.

The best remedy is to start saving money. There are many ways to do this. Firstly, try purchasing accounting and budgeting software that enables you to save. It may seem like just another added expense, but the cost will benefit you in the end. Part of this process will be to track your outgoings and incorporate them into a monthly budget plane. The software will assist you by making the task much easier, but if you prefer you can set up a manual table with a paper and pen.

Next, label your table with the heading of Daily (or weekly) Spending – Week of ________. Make sure that you list all your spending requirements, savings, income, taxes, banking fees, food, rent, etc. Each week, when bill payments are due, spend as much as you can on them first, leaving a minimal amount of money for the following week’s essentials. For example, if your telephone bill is $114, your utilities bill is $59, and your cell bill is $180 and you get paid only $300 then it will be obvious that you do not have enough to cover this. It is now time to cut down on unessential items. Do you really need two phones?
Forget going to the cinema, budget in rentals, but unfortunately, you may simply have to do without this week. Listen to the radio or watch t.v.

Try to also develop a table that includes your estimated monthly repayments and your living expenses. List your gross income, pensions, bonuses, child support, retirements, and other deductions. Then work out what can be saved on and put it towards paying down your debts. Sadly, you will have to reduce your groceries, medicinal, personal, pet, holiday and gifts costs. Are there any assets that you don’t really need? Do you need that second car? Why not sell it and clear some more debts?

These simple little tips, along with good record keeping, will help you to gradually reduce debt, fix your credit score and rating, and help reestablish you credit. You may want to think about getting a higher paid job, if your current one offers measly wages. In fact, taking on another job part-time on top of your regular employment can pool in more money. Always remember that there is always a way to rebuild your credit and repair the damage done.