Chat with us, powered by LiveChat

Rebuilding Credit After Gambling Debts Are Resolved

Getting out of debt from gambling can be really hard. I know, I’ve been there myself. The good news is, there are ways to rebuild your credit even after you’ve piled up a ton of gambling debt.

First off, you gotta get help for the gambling addiction itself. That’s step one. Don’t be afraid to ask for help – I sure needed it. There’s support groups, counselors, even medications that can help you stop gambling and get your life back under control.

- -

Once you’ve got the gambling under control, then you can start chipping away at the debt. It won’t happen overnight, but if you make a plan and stick to it, you can be debt-free eventually.

Get on a Written Budget

This is key. You gotta know where your money’s going each month before you can start paying down debt. Track every penny – make categories for stuff like rent, utilities, food, transportation, etc. That’ll show you where you can cut back and free up cash to pay the debt.

Some easy ways to save: ditch cable TV, stop going out to eat as much, find a cheaper cell phone plan. Every little bit helps.

See also  How to Handle Medical Debt as a Self-Employed Entrepreneur

Pay Off the Highest Interest Debt First

This is usually gonna be credit cards. Pay as much as you can towards the card with the highest interest rate each month. Once that’s gone, move to the next highest card. This saves you money over time.

- -

You can also look into balance transfer cards with 0% intro APRs to lower interest while you pay off the balances. But don’t run up more debt on the old cards!

Talk to Your Creditors

Call up your creditors – the credit card companies, banks, etc. Explain your situation and ask if they can reduce your interest rates. Often they can lower rates quite a bit, which will help you pay off balances faster.

You may also ask about hardship programs or other special repayment plans to make payments more affordable in the short term.

Consolidate Your Debt

Debt consolidation rolls all your balances into one new loan, with one monthly payment instead of multiple cards. This can make paying off debt simpler.

Options include balance transfer cards, personal loans from a bank, or debt management plans from a nonprofit credit counseling agency. Shop around for the lowest rates.

- -

Sell Stuff You Don’t Need

Have anything just sitting around collecting dust? Old electronics, jewelry, furniture, clothes, tools? Sell it online or have a garage sale. Use the cash to pay down balances.

You can also pick up a part-time job – like dog walking, Uber driving, etc. – and put that income towards the debt.

Prioritize Secured Debt

Secured debt like car loans and mortgages should take priority, since not paying them could mean losing the assets. Try to keep making at least minimum payments on these while paying down credit cards.

- -
See also  Debt Consolidation Calculator

Get Professional Help

Nonprofit credit counseling agencies can help you manage debt, create a budget, negotiate with creditors, and more. They offer free financial advice and debt management plans to consolidate debt into one payment.

Bankruptcy is a last resort if you have no way to pay. It damages your credit for years but wipes out most debt.

Dispute Any Errors on Your Credit Reports

Get free copies of your credit reports from AnnualCreditReport.com and dispute any incorrect info with the credit bureaus. This can boost your scores.

Pay Down Balances

Keep making payments each month, even if it’s just the minimums. As you pay down balances, your credit utilization ratio improves, helping increase your scores.

Become an Authorized User

Ask a family member with good credit to add you as an authorized user on a credit card they manage responsibly. This can give your credit a boost.

Limit New Credit Applications

Each credit application causes a hard inquiry, which dings your scores a bit. Avoid applying for multiple new cards; instead, focus on managing your current accounts well.

Check Your Credit Reports

Get copies of your credit reports every few months to check for errors and monitor your progress. You can get them free at AnnualCreditReport.com.

It takes time, but taking these steps can help anyone rebuild credit after gambling debt. Be patient and keep at it. Your scores will improve as long as you stick to your new, responsible habits. You got this!

Let me know if you have any other questions!

-Alex

References

[1] Debt Recovery and the Debt Recovery Process | Debt.org

See also  7 Steps to Eliminate Small Business Debt

[2] 5 steps to rebuild credit after debt settlement – Hello Resolve

[3] How To Dispute Your Debt and Win Against Collectors & Creditors

[4] Financial Help for Gamblers: How to Pay Off Debts – InCharge Debt Solutions

[5] Protecting yourself from problem credit due to gambling – Experian

[6] How long does it take to rebuild credit after debt settlement? – Hello Resolve

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Sacramento, California Timeshare debt relief lawyers

Sacramento Timeshare Debt Relief: Get the Legal Help You Need…

Largest Debt Settlement Companies

The Debt Settlement Landscape: Navigating the Largest Players Introduction So,…

Can MCA lenders freeze your bank account?

The Brutal Truth About MCA Lenders Freezing Your Bank Account…

Navigating Spousal Credit Card Debt: Your Obligations

Will you pay your wife’s credit card debt? It’s a…

Penn Credit Corporation: Debt Collection Experts

In the world of debt recovery, one name stands out:…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation