The reasons for developing bad credit are many, but there are remedies that work. The most obvious — pay all your delinquent amounts and make all future payments on time — is usually the most difficult option.

However, there are other options available to you to improve bad credit. Here are some suggestions that will accomplish the goal of improving poor credit reasonably quickly.

• Correct any errors on your credit report. Obtain a free credit report; you are entitled to receive one every year. If you note any errors, write to any of the three credit bureaus that have incorrect information and ask that it be corrected or eliminated.
• Talk with your creditors to learn if you can reduce your required monthly payments to improve your current cash flow.
• Negotiate lump sum payoffs of older delinquent balances so they are less than the full amount due. While your credit report will display a comment saying, “settled for less than full balance,” the account(s) will be marked “paid off” and free up cash to pay other obligations up to date.
• Consult with a credit counseling firm you trust. They can help you by negotiating with your creditors to lower your monthly payments and/or settle your debts at less than the full amount due. Good credit counseling firms can negotiate a positive result you may be unable to accomplish on your own.
• Try to qualify for a debt consolidation loan. While you won’t receive excellent interest rates, you might be able to improve your cash flow consolidating multiple high interest rate loans into one payment that is significantly lower than the multiple payments you’re now required to make.

Do not rush to a firm that promises to “fix your credit” magically. There is no such “silver bullet” available to you. In the end, only you can repair your bad credit situation and it takes thought, commitment and dedication. There is no quick fix or miracle cure.

Recovering from a bad credit situation requires both your action and your patience. But if you’re dedicated to achieving your goal, use debt consolidation loans (if available) effectively and/or credit counseling professionals wisely. You can increase your credit score and improve your monthly positive cash flow relatively quickly.

For people who live in New York or New Jersey, there are many options to improving bad credit. Let Exchange Place match you with up to four providers of debt settlement services in the New York metropolitan area.