The only permanent way to improve your credit report is to reduce your debts. Your household budget can help you determine if you can cut your expenses enough to free up the cash necessary to repay your debts and improve your credit score.
But what if you have more debt than you can handle, and simple budgeting won’t be enough to fix the problem? Then you need to take more drastic action. You may need to consider a debt consolidation loan, debt settlement, a debt management plan, a consumer proposal, or even personal bankruptcy. Each of these options may negatively impact your credit report; obviously filing personal bankruptcy is not good for your credit score. But remember, if you have more debt than you can handle now, you won’t be able to borrow, so if your credit score is already damaged, it may be better in the long run to fix the problem.
Which option is right for you? It depends on your level of debt, and your ability to make payments. Start by using our debt options calculator to see the costs of the different options, and then take action. Debt problems will not get better on their own, so the sooner you take action, the sooner you will have a fresh start.
