How To Achieve Debt Relief After A Large Kitchen Renovation

Now that you’ve finished renovating your kitchen thanks to the kitchen remodel loan that you got, the problem you have to solve right now is, how to pay off that loan. A massive kitchen renovation potentially calls for hefty personal loans and of course paying them off, later on, could be very hard. Fortunately, though, there’s a way for you to be free from your large kitchen remodel loan if you are struggling to pay it off. And that is by achieving debt relief.

What is Debt Relief? 

Debt relief is a change in the terms of your debt or the amount that you owe that allows you to put the debt behind you more quickly.

Debt relief seems to be an excellent choice if you are drowning in debt, or if you are struggling to pay your debts (in this case your kitchen remodel loan). If that is the case, you should know how to achieve debt relief.

How to Achieve Debt Relief?

Here are the best ways to weather out your debt crisis:

1. Do-it-yourself or self-payment initiative. 

Know that you can get out of your debt crisis on your own.You have to make smart and tough decisions on how you can pay off your kitchen remodel loan by cutting down on your expenses. There are two ways for you to be able to repay your debts on your own and that includes:

• Identify the expenses that are necessary
• Get rid of anything that is really not needed, at least temporarily, or until all your debts are settled.

Managing your finances correctly will allow you to pay off your monthly payments while not having to compromise on the necessary expenses at home.

2. Consumer credit counselor

If you need help with managing your finances, perhaps talking to a consumer credit counselor will help ease your burden. The counselor will talk to you about all your finances. And then, come up with a debt management plan based on your current financial woes. A debt management plan is a debt solution that you can use to help pay off your debts at a more affordable rate.

• Your counselor will first determine how much you are able to pay back and then try to negotiate with your creditors. Your counselor could try to extend the term or lower your monthly payments based on what payments you can afford to pay. 
• There are also some cases where your consumer credit counselor can try to negotiate with your creditors to reduce the interest rate. This should ease up your monthly payments and be able to pay them consistently.

3. Debt consolidation programs

Another good way to achieve debt relief is by bringing together all your debts into one manageable account. There are main benefits of consolidating your debts into one account.

• Get rid of the high interest rates.
• Have lower monthly payments.
• You can focus on making just one payment every month.

This method, however, does not affect or change your total debt. The total sum of your debt will still be the same, what you did was just bring together all your debts into one account so you can pay them off easily.

4. Debt settlement

Debt settlement was not really considered as a good way of achieving debt relief, at first. But it has lately gained prominence among people who are deep in debts. You can find more on debt settlement companies here.

• In debt settlement, you will hire a debt relief company to negotiate with your creditors on your behalf. The goal here is to pay your creditors a portion of your debt after mutually agreeing to a sum which is less than what you originally owe. 
• By paying off a portion of your debt, your creditor will agree to forgive the rest of your debts. 

Conclusion

Whether you’re struggling to pay off your kitchen remodel loan because of your poor money management skills or because you’ve lost your source of income, you’ll surely love to get rid of them by achieving debt relief.

How To Repair Your Credit For A Kitchen Remodel Loan

If you are asking if you can still get a kitchen remodel loan for your home even though you have a bad credit score or poor credit history. The answer is yes. Yes, you are still entitled for a kitchen remodel loan or any kind home improvement loan even if you have a bad or poor credit history. You just need to repair your credit first before you can secure a loan.

Here’s how to do it.

1. Take a look your credit score or history.

You can’t start repairing your credit score if  you don’t check your credit report first. Remember that you have the right to get a free copy of your credit report every 12 months. If you haven’t receive your credit report, be sure to get a copy of it and check it for errors.

Your credit report includes all the data used to calculate your credit score and it may contain errors like:

• Identity errors - errors concerning with your identity
• Incorrect reporting of account status - these are errors concerning about the current status of your account. 
• Data management errors - these are errors where incorrect information are being used on your credit report.
• Balance errors - errors that concerns about your current balance.

You have to check your credit report for any of these errors. If you find an error on your report, you need to dispute them with the credit bureau. Just make sure to bring all the documents needed to support your claim once you go to a credit bureau. These documents will help confirm the errors on your credit report.

2. Start repairing your credit.

Once you’ve dealt with any errors on your credit report, it’s time that you start repairing your credit. Now, there are three main ways to repair your credit and these are:

• Pay all your payments on time.
• Pay any unpaid or overdue debt.
• Avoid getting new credit until your credit score is back up where it needs to be.

To do these things, you need to make some tough, smart decisions with your budget. You have to make sure that you are not spending more than you earn. You can do this by being smart with your budget like:

• List out your regular monthly expenses like rent or mortgage, car payments, and home, care, and health insurance, and subtract it from your current monthly income. 
• Next, list out also all of your other expenses at home like groceries , entertainment, food, and gas expenses. 
• After that, you should create a budget limit for each of your expenses based on your income. Say, your family spends $400 a month for groceries, try limiting that to $300 a month.

This way you should be able to pay all your credit payments consistently while not compromising your other expenses at the same time.

3. Make payments on time.

Your bad credit score could be caused by your late credit payments. Know that your payment history affects your credit score more than any factor. It can affect your credit score by up to 35%. Making credit payments on time is the best way to improve your credit score.

This will also help you to be qualified for a home improvement loan like a kitchen remodel loan. Creditors will be looking at how you’ve made your credit payments recently and base their decision to whether give you the loan or not.

Conclusion

You need to repair your credit and your credit report first, before you can be qualified for a kitchen remodel loan or for any kind of loan. Just keep in mind though, that your credit score will not improve overnight. It will take months or, years even, before it starts to climb back up.