Credit Repair and Your Emotions?

It is a subject that few people discuss, but more and more therapists are talking about it – the key link between our emotions and our money.  We may think that money is all about our rational selves, but in fact our emotions are often very much invested in our pocket books.

If we want to repair our credit, we have to deal with the emotional as well as the numerical side of money.  There are a few tips that financial experts now believe can help you harness your emotions in a way that can actually help you improve your credit score:

Give Yourself a Break

There is no point in beating yourself up over your credit score – whatever it is.  Instead, promise yourself that you will do better in the future and then work to repair your credit rather than working on berating yourself.  Taking action to improve your credit rating will improve your outlook as well as your credit.

Don’t make excuses

If you have been the object of identity theft or have genuinely been mistreated by a company, then by all means include an explanatory note in your credit report.  However, most lenders do not want to hear a lot of excuses.  Whatever your problems have been in the past, you will seem like a much more reliable lender if you focus on what you are doing to get out of problems.

You will feel better and get better responses from lenders if your focus on current action rather than past mistakes.  Instead of wallowing in pity and explaining in great detail the personal and financial problems that led to a bad credit rating, give yourself and lenders the condensed version and then move on to a detailed review of what you are doing to repair your credit.

Work on your emotional response to debt and money

Most of us carry a lot of emotional baggage with us when it comes to money.  We see money as a marker of success, or we see money as a way of making ourselves feel better, and these attitudes lead us to much of our financial and credit problems.  If we rely on money to make us feel successful, then we are apt to overspend.  If we fear money – or the lack of it – we are unlikely to save it or make investments with it.

We need to be aware of the ways we respond to money and the ways that those responses shape the ways we deal with money.  Some financial experts recommend that clients keep money journals, in which they record their money hopes, their money fears, and their responses to spending and money.   A money journal can help you by showing you how feel about spending and about money.  If you can isolate the emotions that influence how you spend money and how you make your money decisions, you will be well on your way towards fixing your financial problems.

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