If you’ve never paid attention into your credit rating, it can be a rude awakening finding out your score is less than desirable. Many people are none the wiser until they’re rejected by a lender, so it’s a smart idea to familiarise yourself with your credit report to know where you stand.

Learning of bad credit can be unnerving, overwhelming, and downright scary – but it doesn’t have to be this way. With a little patience and sensible money habits, the road to recovery can be smoother than you think.

We’ve compiled three success stories to prove there can be light at the end of the tunnel.

Story one.

This 21 year old university student living it up with his friends was not too concerned about his spending. A Mustang and the latest computer were among his purchases, and he kept spending this way for a couple of years, getting further and further into debt.

Unfortunately, the debtor had his car stolen, and without full comprehensive insurance, had to borrow even more money for another car. At this point he realised he’d hit rock bottom. He couldn’t make his credit card payments as well as keep a roof over his head. It was time for a change.

The debtor decided to get his life in order; he surrendered his car for repossession, turned his back on credit cards and changed his spending habits, buying only what he could afford. He lived to his means and found himself quite content.

After settling into a higher paying job, the debtor found his feet and even started saving money. He agreed upon settlements with his creditors after seeking legal advice, and bit by bit, wiped his debt completely.

Story two.

As a young adult, the debtor in this story had little concern when it came to paying bills on time. He would allow them to pile up, sometimes not paying until they were 90 days overdue.

At a certain point, the debtor realised he would someday want to settle down and buy a house; he understood it wouldn’t be possible for these plans to materialise if he continued on with such a bad credit score.

The first thing the debtor did was start paying his bills on time. He was so determined to turn his credit score around that he was even paying extra on his monthly bills. The debt grew smaller and smaller; he checked in on his credit score every few months to track his progress and was delighted to see his score improve each time.

Story three.

This story sees a married couple misjudge the cost of buying a house and raising children. When it all became too much, selling their house was unfortunately not sufficient as they could still not make all of their payments.

Determined to steer clear of full bankruptcy, the debtors contacted a debt agreement administrator in order to get on top of their financial situation. The hassling phone calls stopped and a single regular payment came out of their account to pay off their unsecured debts.

The debtors now save up for any purchases and refuse to get a loan for anything other than a house. A debt agreement, while an act of bankruptcy has allowed them to become debt free.

Help turn your credit score around by seeking assistance from credit repair companies such as Credit Fix Australia, debt agreement administrators like Debt Cutter or budgeting specialists including MyBudget. Rapid Finance will always try to assist on your bad credit recovery journey, as well as give you a fair go when applying for a loan.