When you are facing financial challenges, it can be difficult to know where to begin. Do you think about the immediate stressors in your life, such as threats of foreclosure, mounting credit card debt and not enough income? Or do you focus on future challenges, like what bankruptcy or foreclosure will do to your FICO credit score? There is truly no easy answer to this quandary, as it is critical for you to examine both present and future stressors when weighing your situation.
Thankfully, there are many ways to remedy your financial situation, provided that you educate yourself about potential decisions and seek out support, such as the expert guidance of an experienced attorney. With education and support, you can weather threats of foreclosure and mounting debt. Eventually, with proper reactions to your situation, you will be able to build a new, solid financial foundation.
For example, if threats of foreclosure turn into an actual foreclosure for whatever reason, no hope for your financial future must be lost. Certainly, foreclosures do impact credit scores. However, many scores can begin to recover over the span of two years post-foreclosure. In order to allow your scare to recover, you will need to ensure that your other bills are paid on time and that you ideally do not acquire any new debt. When your debt to available credit ratio begins to favor available credit, this scenario can impact your score for the better as well.
Weighing your financial options when you are burdened by debt and mounting bills can be an overwhelming process. By obtaining information on your options, consulting an expert and actively working to rebuild your credit score after it has taken a dive, tomorrow can ultimately be much brighter than today.
Source: MyFICO, " Can my score be ruined by one item?"