How to fix your blacklisted credit profile

Recently there has been a lot said and written on how to improve your credit score, but what should you do if you have a black listed credit profile? 

Being blacklisted has huge implications, not only will you be denied credit but unless you rehabilitate your profile you may find your existing loans being called in or even higher interest rates being charged because of your blacklisted status.

Here are some of the options:

1. Debt Counselling:

A debt counsellor will in most cases provide you with a simple debt rehabilitation program and on accession work as the go between for outstanding debts and will try to negotiate a lower repayment on your debts by extending your loan terms. Short term this is the easiest solution however you need to keep in mind that the debt counsellor changes a fee for their services and this is NOT always the best long term solution.

2. Putting Yourself Under Administration:

Many consumers who are in the debt trap file for a an administration order as an option to protect and assist them to repay their debts. It places the management of their financial affairs in the hands of debt administrators, who receives your income and, after deducting an amount to cover your living expenses, distributes the rest proportionately among your creditors. This is often an expensive option and you loose finical control.

3. Hiring An Attorney:

Not all consumers who are blacklisted can afford to hire an attorney and this is usually an option reserved for those who have already repaid their debts but still find themselves blacklisted and therefore want to have their blacklisted status removed. This is an expensive option to follow, however if you have the money to spend then this may be the right move to ensure you restore your credit profile.

4. Do it Yourself Credit Repair:

This is by far the most popular and cost effective option and if you understand your rights and obligations as a consumer you will be empowered to make informed decisions and not only rehabilitate your credit status but ensure it stays that way going forward.