Make a Plan to Re-Establish Your Credit

In the spaces below, record the companies to which you owe money. If there has been legal action or an attempt by a collection agency to collect a debt, indicate it in the column labeled “Legal Action.” Record the yearly interest rate if there is one currently accumulating. If someone else cosigned on the loan or your property can be taken for the debt, put that in the “Debt Secured” column. The information chart below will help you decide which debts should be paid off first. High interest rates, secured debts or impending legal action should be a high priority for repayment. In the last column, number each debt in the order to be paid off, using number 1 for the debt you will pay off first. This is your payment priority and the order you will use to list your debts to work out a debt repayment plan

It is important to check your credit report to see that the information you have entered above matches what the companies have reported to you. If the amounts listed above cause you to pay out more than you bring in, you may need to consider increasing your income or decreasing your expenses. Tracking your expenses with the spending plan chart will help you determine how to decrease expenses and/or increase income in order to reduce and eventually pay off your debt