Once you get so deep into financial trouble, it can be hard to get yourself back out.
Fixing your credit can really help out with your credit score and credit report.
It may cost some money to go about fixing it, but the costs are well worth it in the end, as you will benefit greatly from the rewards, not just financially, but also emotionally.
Just think about how much less stress you will be under without all of that enormous debt looming over you.
Paying high interest rates on things like cars and homes may just sound like a part of life to some people, but you need to think about what these interest rates are really costing you in the long run.
After seeing what these high interest rates can do to your credit in the long run, it makes more sense to find and execute a strategy to fix your credit.
Here is an example to see exactly how much high interest payments can cost you long term.
Supposed someone owes $150,000 for their house, $30,000 for their cars, and $10,000 for credit card debt.
While the house will be eventually paid off completely, the car and credit card debt will likely continue, as you trade in a vehicle and get a new one, and even after paying your monthly credit card bill, you continue to use it and rack up more debt.
On average, the typical sub prime borrower ends up paying an extra 2% on home loans, 4% on auto loans, and 5% for credit card debt.
So let's take a look at what that adds up to.
The person in the above example will end up paying back an extra $3,000 annually for their home, $1,200 annually for their cars, and $500 annually for their credit cards, which comes out to a monstrous total of $4,700 a year or $391 a month.
To most people, that monthly amount is a big deal and could help out greatly in paying for your other monthly expenses.
That alone should make you think about getting your credit fixed.
Plus, if you don't need to spend that $391 a month and can actually put it away in a savings account, assuming it has an annual 3% interest rate, over the course of 30 years, you would have saved up an astonishing $227, 850! Think of the kind of retirement you could have with that amount of money!