How to Fix Your Credit after Foreclosure The current housing crisis has affected many people as well as their financial situation negatively. If you are one of the thousands of Americans who have had their house foreclosed upon and are now wondering how to get back on track and fix your credit, understand that you do have options. It goes without saying that when you lose your home, your pride not only suffers but so does your credit report. Pride, of course, can be restored. Fixing your credit after foreclosure is a little more daunting. However, it doesn’t have to be if you know the steps to take. First, in order to fix your credit, you must look at the reasons why your home was foreclosed upon. If there were factors involved that could have been avoided or if mistakes were made, identify them and focus on their reasons so you never put yourself through this again. Next, it is necessary that you create a budget that you and your family follow. Since it is possible that the foreclosure will stay on your credit report for several years, you must get used to the idea that it may be necessary for you to operate in a cash-only world. In addition, this will help instill you with good habits you will take into the future once you fix your credit. Another step is to request a copy of your credit report from all three credit bureaus. This will give you an idea of what you are working with and let you know what bad debt you have to pay off. After you have your credit report, work on paying off legitimate bad debt. This is one of the quickest ways to fix your credit. Also, check out the possibility of working with a debt consolidation company. Many times, these companies’s can lower your interest rates and help make your payments manageable. Next, to fix your credit, you must continue to maintain your new spending habits. Do not attempt to open up new credit cards or obtain new loans. Work on managing the debt you have and get out of the hole you are in. Finally, the most important step in fixing your credit is to cut up your existing credit cards that are in good standing. It doesn’t make any sense to get further into debt to try to get yourself out of debt. When you cut up your credit cards, you are more likely to work harder at fixing your credit and getting yourself back on track. If you have more questions feel free to visit AAAcreditguide.com the consumer credit authority website.