A Good Name

How often do we consider our financial reputation? Am I known to be one who pays my debts or one who defaults? I am a believer that responsible people do not miss payments intentionally. Typically it is do to a lack of finances. Finding myself in this situation made me take a good look at how I was managing, or should I say mismanaging the money I had. After calling the creditor to explain why the payments fell behind, and reminding them of my good payment history that wasn't appeasing to them. It's funny how different you are treated when you are considered a customer who defaults. I did what I was guided to do (through asking God for guidance, I simply followed his plan). Today I am so close to having the debt paid off, I am counting down to the last payment. Should you find yourself in a bind and fall behind on payments, don't allow that to discourage you, keep going.

There are times when we find ourselves having to decide who's getting paid this week and who isn't. That is a reality for many people. I remember a bank rep saying to me that while my score had fallen in to the low 500's (due to my decision to close all of my credit accounts while paying them off) that she could see I pay the bills. That was more important to me than a high FICO score. Yes the bills are paid on time despite the low score. What I've found throughout this process is that gradually the score will creep back up with consistent and on time payments. My goal isn't to have a high credit score, it is to have a good financial name. I prefer to repay those I've borrowed from as I work my way to financial independence and eliminate debt. Going through this has showed me that I do not want to live with indebtedness to banks, finance companies, etc. It takes grit and determination to rebuild your standing. From my point of view, too much attention is placed on the credit score.

That alone has taken many people down a path of financial destruction, one that is hard to come back from. Not impossible, but certainly challenging. The best advice I can give to anyone wanting to rebuild their financial reputation is this, ask God for guidance. He will help you in creating a plan to work your way out of debt, guide you in making a budget and lead you to the right people who will assist in areas you need help in. There is a lot of great knowledge available on line for free, yet many choose not to take advantage of it. Anyone who wants to improve their finances can. It does not happen overnight but if you take in the lessons and patiently work your plan, you will soon find yourself in good standing. And with a good name!!