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
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
Source: MyFICO, "
Can my score be ruined by one item?"