Why Bad Credit Doesn’t Mean You Are Financially Defeated
A bad credit profile isn’t easy on anyone. Although there are means and ways around it, having a less-than-stellar score can make it difficult for a person to make large purchases, take vacations and secure loans whether it’s for a home or a car. If you have bad credit, you know this first hand. However, you’d most likely agree that the thoughts and feelings that come with damaged credit, are much more burdensome than the financial strain itself. It’s important to realize that a damaged profile shouldn’t make you feel hopeless or guilty in any sense. No matter how responsible you are, life circumstances can put you on a path to bad credit.
Why it’s Normal to Feel Bad for Having Poor Credit
Telling you to not feel at fault for bad credit is easier said than done. As an adult, you most likely feel that you are the one who should be in control. So when you see a score that doesn’t reflect your ambitions or who you are as a person, it’s quite likely for you to feel negatively about your situation.
Society Puts the Blame on You
We live in a society where people are quick to criticize one another. For example, a homeless person may be judged as lazy or a failure, but they could have been an ambitious, working-class citizen who stumbled upon some unfortunate circumstances. Likewise, some people are quick to dismiss others with poor credit as irresponsible. Some individuals may certainly be responsible for their situations, but it’s fair to say that many aren’t. If a change in your circumstances led to your current position, it can be hard to convince others that you weren’t the cause of your problems. The attitudes and perceptions of others can definitely shape the way you feel about your financial standing.
Reduced Financial Freedom
As an adult, your independence is most likely important to you. In fact, it’s one of the things you probably spent many of your younger years hoping for. But when your credit score takes a dip, your financial independence might seem to vanish. After all, it gets harder for you to do the things you once were able to, now that your credit limits your options. As a result, those vacations and big ticket items will be much harder to obtain, especially since it’s necessary for you to have a good credit score for these purchases (unless you can somehow pay for them with cash). The addition of financial burdens makes this situation even harder, making you feel trapped. Living with such circumstances can bring about stress and frustration, especially if you can’t provide the life your family deserves.
Repercussions of Bad Credit Feel Like Punishment
Having bad credit also feels patronizing. If you live a busy life, juggling the responsibilities of having a family, car, job and home, it most likely feels quite punishing to see limitations on how you can maintain or pay for these things. To make matters worse, there may be people in your life who label you as irresponsible, criticizing you for making bad choices. We all make bad choices throughout our lives – including them – so even if a few missteps in judgement landed you in financial trouble, you shouldn’t beat yourself up about your situation.
What to Remember When Bad Credit Takes an Emotional Toll
- Everyone makes poor financial choices at times
- Even responsible people can suffer from bad credit
- Bad credit IS something you can improve
- You can take control of your credit by making simple adjustments
- Bad credit isn’t punishment; it’s the result of financial missteps taken over time
What Really Matters
While it’s understandable that your credit could make you feel down at times, it’s important to remember that you aren’t hopeless. There are systems in place to help individuals like yourself get back on their feet after they’ve been derailed from having a good track record. Taking advantage of these arrangements can help you carry out the tasks and chores you need to, without having to feel stifled by inability to pay for them.
Helping You Out
- Bad Credit Loans – If you need a loan and have bad credit, you’re not out of luck. There are options. Although you will most likely pay higher interest rates, you can still obtain a credit card or car loan (often referred to as a bad credit car loan). These arrangements allow you to carry out the some of the purchases you need to make, while giving you the chance to rebuild your credit.
- Speaking with Financial Advisors – Speaking with your personal advisor is very important if poor credit is a problem for you. Their job is to help bring you back to healthy financial standing. They can give you tips on all aspects of your finances, including your savings, investments and daily expenses, so that you learn the best ways to manage your funds and live within your means.
- Budgeting plan – No matter how good or bad someone’s credit is, it’s wise for ALL individuals to have a budget. It is one of the main tools to keep you debt free. However, a budget is even more essential for people who have poor credit. You will need to review every aspect of your finances to see where you can cut back, so that you’re not paying more for things than you need to.
You Can Change Things for the Better
Remember, bad credit isn’t something that you can’t escape from. It may seem tough at first, but with the right advice and action plan, it’s a predicament you can turn around. The most important thing to realize, is that bad credit can happen to anyone, and feeling defeated over it won’t make your situation better. Rather, make it your goal to stay out of further financial trouble, by paying for things on time and avoiding expenses you can’t handle. By taking these steps, you’ll put yourself on the path to financial recovery, and may soon say the end to your bad credit days.