When you have some credit issues that could threaten your overall credit rating, you may want to see what you can do to clear a debt. This means that you get the debt paid off in some way and it will be removed from the negative side of your credit report. It will turn into a positive for your credit and can even work to improve your credit score.
Many times when people have bad credit scores, they can view their credit reports and find where the worst offenders are. These may be large payoff amounts or accounts that have been pending for a very long time. They may even be a combination of both. If you can manage to clear a debt like this, your credit rating is more inclined to improve drastically. In fact, taking care of a debt that is old as well as high, can boost your credit score quite a bit.
Something else that may work, if you cannot afford to pay the entire amount at once, is to contact the place where you owe the debt. Do what you can to work out some sort of payment plan with them. You can actually work up your own before calling them. Base it on what you KNOW you can afford to pay and when you can afford to pay it. In this way, you will prove that you are sincere in your quest to clear a debt. Most of the time, companies will work with you because they want to get their money anyway they can. Occasionally, you will run into places that only want the full amount and are not interested in a payment plan. If that happens to you, it just may be necessary to start saving money so that you can pay it all off at once.
If your debt is very large, you may want to see if you can borrow the money from somewhere so that you can pay it all off. It will most likely be difficult to get a loan from a bank or other highly reputable finance company to clear a debt if your credit is awful. In that case, if you are positive you can repay the loan in installments, you may try borrowing the money from someone you are close to and who has it to spare. Just be sure that you can repay the loan in the time agreed upon.