How to Pay Off Bills With Bad Credit

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Paying off bills with bad credit can be done by taking out a loan, though the interest rates will be high, and paying back any other debt to increase the credit score. Pay off bills, even in the case of poor credit, with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Reports & Credit Scores
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Video Transcript

Hi, I'm Roger Groh. We're here today, to talk about how you can pay off your bills, even when you have bad credit. Well, many of us have been late, at one point or another, making payments. That shows on our credit history, which makes it more difficult to borrow money, up the road, but yet, you still want to pay your bills, you're not trying to do anything bad, so how do you do it? Well really, bad credit does not affect cash flow, so the simplest thing, is improve your cash flow. For instance today, if you forecast and your tax professional forecasts, that you're going to be receiving a rebate on your income tax, based upon the amount of money they're taking off your check, every paycheck, you might be able to get more cash to yourself today, in lieu of the rebate, that's coming in six months. You can then take that excess cash coming to you, and you can pay off your bills. The second thing is, you can always take a loan out. Now, you might pay more for that loan, because you've got a bad credit history, but nonetheless, you'll be able to take another loan out. You could consolidate your debt, you could pay it off, and maybe ultimately, pay less, especially if it's credit card interest, where frequently the rates are in the 20% range, which is terribly high, from my point of view. The third thing is, go and borrow some money. Again, the objective here, is to bring down the rate of interest, on the total debt that you have out. You're not trying to walk away from it, you're still trying to pay it, but if you can pay less interest, you can save money, and perhaps a family member or a friend, or even your employer, might be willing to lend you money, so that you would be able to do that. I'm Roger Groh. Those are some of the simple steps that you can take.


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