Credit Bailout - What's Going to Happen to Consumers?

Forget about how it happened, or who is at fault. The fact is that currently the economy is in a bit of a mess, and ultimately we're all going to have to deal with it. One question on everyone's mind is, "What's going to happen with consumer credit?"

If the banks are worried about lending even to each other, how are they going to lend to you - the little guys and gals? What will happen when you want to finance a new car or refinance your home? What about getting credit for braces for your ten year old?

These are legitimate concerns for us all right now. And it's true that lenders will be much more cautious about loaning money to anyone. The answer is to make sure that your credit worthiness and financial health is as good as it possibly can be now, and to continue to do what you can to improve it over time.

First, make sure your credit is good, or do what you can to improve it. Check your credit reports and make certain they are completely accurate. Make certain that any negative credit is reported accurately, but that good credit history is reported accurately as well. If you find mistakes, you can write to both your creditor and to the reporting agency and request that they fix the faulty information. Then monitor your credit reports regularly.

Next, if you have accounts that are overdue or in collection, call those creditors and make arrangements to pay them back, and follow through with the agreements you've made. This is a step that some don't want to take because it's embarrassing and your creditors might treat you unkindly.

Persist that you want to make reasonable repayment arrangements. Most will work with you. Some will even knock off some interest and late fees. This is also essential to re-establishing your good credit if it's battered, and it will make all the difference when you apply for a loan or a credit card in the future. It will take time, but you will begin to see improvement in your credit score.

Pay attention to your financial health and management practices. With the economy in upheaval, you will do well to be certain that you are taking care of business first, meaning that you are paying your bills on time and saving some money, too (in an institution that is insured). Your investments might be in a mess right now.

Seek out a very wise and trusted financial advisor to help you decide what to do next. And of course, as mentioned earlier, by all means protect your credit. Today and in the future, banks will still be willing to lend to those with good credit scores and who have demonstrated credit-worthiness.

These economic times are uncertain, but don't let that send you into a panic. You will be wise to take a deep breath and make sure you have your financial house in order and your credit as healthy as you can get it.

Take steps now to do all you can to protect your credit worthiness and to improve your credit, even if it's already considered good. That way, in spite of the lending crisis, you will be able to secure credit when you need it. Visit http://www.debtcredittips.com immediately to safeguard your financial health!