The content is accurate at the time of publication and is subject to change.
It can be very challenging to get out unscathed through a financial crisis. And whats even worse is that such things happen only in the most unexpected times. You could be in the middle of a ceremony or an important exam or interview or it could even be your marriage, you can never say when a business can go sore or when one can lose a job in these trying times. And in order to tide through the crisis, the primary escape route would be to take a loan, but what if the bank refuses to give you a loan?
This can happen if you have a bad credit record. In other words, the credit score that was recorded by the crediting bureaus is very low. This can be due to a number of factors. Not paying your dues on time, defaulting on a loan, breaking mobile phone contracts, insurance fraud, filing for bankruptcy etc can be a few plausible causes for a bad credit record. But if you already have a bad record, there are ways to sort it out and you need not feel that it is the end of the world.
The worst result of having a bad credit record is that the financial institutions will stop trusting you as a customer. And these are the very people who are most capable of helping you out in times of financial crisis. The best thing to do is to try and build that trust and start getting their help as soon as possible. Do not make the mistake of falling for sharks in the form of unorganized or illegal underground freelance bankers who will torment you for the rest of your years if you fall into debt with them.
To begin, get a copy of your credit report from the crediting bureaus. Lots of times, there would be wrong entries made in the report. It is always better to check the record every year so that there are no erroneous entries which could point to you being financial unstable. If there is an error, make sure that you contact the credit bureau first and file a report. After doing this, check with the institution which was involved in that particular transaction and find out why the error was recorded. You will need to establish whether the error was on the part of the credit bureau or the other institution. Once you do this, you will know whom to hold responsible for your situation.
And when you are in really deep trouble, try to close some of your crediting accounts and cut down on your spending. The latter has to be done as soon as possible. And after this, try to sell off your assets and use the amount to pay off your debts. After doing all this, take some time to reflect on your errors and ensure that you do not repeat your mistakes in the future. Learn from your mistakes and live a financially stable life.
