Category: General

Your Rights in Relation to Credit Repair

Most people never consider their rights in the process of credit repair, because they think they don’t have any. But the fact is that you do have rights, and knowing them can be the difference between a bad credit score and a good one.

What if your creditors are trying to scare you into paying them? What if you need to file a dispute with your credit report? Or how about if you’ve been scammed by a credit counselling company? In all these instances, knowing what you are entitled to is critical.

#1) Scare tactics

If you are being harassed by those you owe money to, then you will be relieved to hear this isn’t legal. There is a certain procedure creditors have to follow when getting in touch with you.

But most people don’t know what it is, so they just put up with the barrage of phone calls, letters, etc. And in many instances creditors actually lie to get you to pay them.

How can you tell if it’s a lie?

If they say they are going to call the company you work for, rest assured they are not telling the truth. This is against the law, and you should notify the authorities.

Sometimes they will tell you they will take your income. Again, this is totally illegal unless they’ve been told they can do so by a court – In which case you would have plenty of advanced warning.

And obviously they can’t touch your checking or savings account. All these are common threats that are not actually legal.

#2) Credit score

You are legally entitled to get a no cost copy of the report each year. You can do so from all of the major bureaus. This helps you verify that there are no mistakes on any of them.

But isn’t one enough?

No, it’s not. Remember, the bureaus all get their information from different companies, because very few of the merchants you work with report to all them. Therefore, even if one of the reports is mistake free, another one might not be.

What if you find an error?

Then you have a legal right to see that it’s fixed. And the bureaus have a legal obligation to check with the company you have issue with and let you know in thirty days of their decision. If you aren’t proactive, the mistakes on your report will never get fixed.

#3) Credit counseling scams

This is a very popular problem. A lot of “credit counseling” firms are nothing more than scammers that take your money.

Is there anything you can do if you’ve been taken?

Yes there is. If the company told you to file disputes with things on your credit report you know are correct, this is illegal. You get your money back because they were advising you to do something illegal.

And if they don’t fulfil the service you agreed to when you first paid them, they are lawfully required to do so. If they haven’t, you again have legal recourse against them.

How do you know your rights when dealing with a scammer?

Just study up on the Credit Repair Organization Act. This is a comprehensive guide to all your rights in this situation.

The bottom line: don’t allow yourself to be taken.

Even if you owe others money, you have more rights than you think. While this article can’t give you every single one of them, hopefully it’s opened your eyes to the legal courses of action you can take if you’ve been wronged in any of these three ways.

FURTHER READING:

How to Invest Like Warren Buffett

Does Your Spending Reflect Your Priorities?

Share
By General Leave a Comment

How to Negotiate a Debt Settlement Yourself

Would you like to negotiate settlements on your debt accounts? You might believe that you have to pay a firm to negotiate a debt settlement for you. However, if you can talk, read, and write, there is nothing they can do for you that you can’t do for yourself.

Follow these important tips if you want to do the negotiating yourself and save some money. With skillful negotiation, it’s possible to get your debt reduced by as much as 75%!

Not paying your debts in full will have serious negative repercussions on your credit report. But keep in mind that continuing to be late with your payments can be just as bad.
It will be more difficult to get additional credit in the future for a while, and the account that you’re settling will be cancelled.
Be sure your negatives don’t outweigh your positives.
As long as you’re making payments, your creditors won’t work with you on a settlement. You’ll need to miss some payments first.
They must think that a settlement is the only way they can get paid.
For example: that you plan on declaring bankruptcy if you can’t reach a compromise (wherein they might not get paid at all)
Just like the used car salesman never gives you his best deal at first, your creditor will hold back initially. Have the patience to wait them out.
You should be able to settle for paying a maximum of 50% of the principal at the time you first started defaulting on your payments.
Don’t ever write a check based on a phone conversation. Be sure everything is in writing and on company letterhead.
Many people have thought they were settling their debt, only to realize that they had been mislead and were merely making a payment that was applied to the original balance.

Settling your debt is something anyone can do; you don’t have to pay thousands of dollars to a debt settlement firm. It may seem nerve wracking, but remember that the person to whom you’re speaking does it all day, every day. If it’s your only option besides bankruptcy, be aggressive and patient.

Be certain to get everything in writing. What is said on the phone means little, unless you can prove it. Follow these tips to get your best deal. You really can do it yourself!

FURTHER READING:

Your Action Plan to Financial Freedom

The New Green Family Guide: A Beginner’s Guide to Going Green As a Family

How to Work Smarter, Not Harder: 101 Strategies to Make the Most of Your Working Hours and Become More Efficient and Productive

Share
By General , , Leave a Comment

How to Avoid Common Credit Repair Mistakes

There are indeed some very serious credit repair mistakes you can make that will kill your chances of raising your score. Here are five of the most deadly:

MISTAKE #1) Not taking any action

This is the worst thing of all. Many people just keep putting it off until it’s too late. Most of the things that hurt your score will remain there for seven years.

Think about all the loans and mortgages you won’t be able to get. In other words, you need to take action. Doing something is better than not doing anything at all.

MISTAKE #2) Not paying your bills on time

This is one of the biggest reasons people have bad credit. And some opt not to even if they can, in order to reduce their overall debt.

Obviously it’s no secret that getting rid of debt is critical. But remember that late payments will have a negative effect on your report for a long time, which is even more important. Only worry about your overall debt when your monthly expenditures are taken care of.

MISTAKE #3) Having multiple credit cards

Many people do this in order to “establish credit.” This is probably not a good strategy. Applying for too many cards will negatively impact your score, and will also make it more difficult for you to pay on time.

Think about it: having five different payments is much harder to keep track of then one. And the higher your credit line is, the more likely you are going to spend money on things you can’t afford. Therefore, you will dig yourself into a further hole.

MISTAKE #4) Avoid shutting down each of your accounts at the same time

You might think you should get rid of all your cards to help your credit. But keep at least one open. If you shut down each of your accounts while you still have bad credit, you don’t give yourself the chance to build it back up.

MISTAKE #5) Going with dishonest companies

There are a lot of scams in the credit repair industry. Many of the companies that claim to help you raise your score will just take your money and leave you in an even bigger hole.

How do you spot the scammers?

Any company that claims they can help raise your credit score by disputing everything on your report should be avoided. Many of them will have you believe you can reverse just about anything on your score.

This is false.

Also, you can easily spot dishonest companies by just reading customer reviews. Check with the BBB as well. These steps will help you easily avoid scams and locate the right company for you.

FURTHER READING:

Money-Saving Tips for New Moms

How to Transform Your Money Mindset

Share
By General Leave a Comment

Bankruptcy: Your Alternatives

Should you file for bankruptcy or not? This is a decision many are wrestling with. The truth is, you probably have more options than you realize. Here are six of the best:

#1) Negotiate

Initially, you should call up the companies you owe money to and attempt to arrange an alternative payment plan. In many instances they will be willing to work with you.

#2) Hire a credit counsellor

This is more effective than the first option, unless you are a master negotiator. Sure it’s more expensive, but it’s usually much more effective. And in most instances your creditors are more willing to work with a legitimate company than an individual.

What will they do for you?

They basically help work out a more favorable repayment plan. But in most instances these firms will only deal with unsecured obligations.

What’s a “more favorable plan?”

They generally attempt to do either one of three things: get the grand total reduced, get better interest rates, or lengthen the amount of time you can pay it back by. All of these will make the payments easier to deal with.

How do the counsellors determine who they will work with?

They will want to know how much money you make. They have to know this to figure out if it’s possible for you to pay off your debts with the new terms.

So if they decide not work with you, do you have to file bankruptcy? Not necessarily. There are still more options.

#3) Get a debt consolidation loan

This is where you take out a loan for the amount of your home’s value in order to reduce your debt. Obviously you stand to lose your house if you can’t pay your debt. Therefore you need to think long and hard about this. It is worth speaking to a certified professional before making such a big decision.

For some, having a monthly loan payment is much more manageable than credit card debt. This is because the interest is applied all at the beginning, so it doesn’t keep accruing.

#4) Lower your expenses

This is the simplest and easiest method. Just take a very close look at where your money is going.

Check your credit card for the past month and notice the charges. Cancel any monthly payments from companies you aren’t using. Chances are, there are more than a few in this category. Focus on the big expenses, because those are the ones that are making the most difference.

#5) Sell nonessential items

Think about getting rid of that second car you own. Consider taking out the money in an investment portfolio and using that to pay things off. Sell your TV. All these things can make a big difference.

#6) Get a loan from a loved one

This is obviously not a good option for everyone but in some cases it may be the right thing to do. Only you can decide for yourself. Just be sure you have done your research carefully before you make your decision.

FURTHER READING:

How to Raise Cash Quickly

How to Earn Extra Income Online

Share
By General , Leave a Comment

Nice Bachelorette Party Games Part 1

Planning a bachelorette party is one of the easiest parts of a wedding to plan. There are literally hundreds of ideas for things to do, and a myriad of options for games. Many of those ideas are a bit on the racy side, but there are plenty that that are just plain clean fun which you can use if you are not sure of your guests, or if you don’t want to be too embarrassed in front of friends and work colleagues.

For example, one popular bachelorette game involves asking the guests to become poets. Ahead of the party, take 50 index cards and on half, write romantic things, like “roses”, “cuddly”, etc. On the other 25 cards, write very non-romantic words or phrases, like “nose hairs” or “ironing”. Then have each guest draw one card from each pile. They should then create a silly poem based on the two very different words or phrases they have chosen, for example, “Roses are red, your nose hairs are ewwwww.”

One fun game that is sure to engender at least a few laughs is “name that item”. Take a paper bag (a fabric bag is better if you have one) and fill the bag with typical “male items”. The items might include a razor, a money clip, a tie, shoe polish, etc. Seal the bag, or fold it over really well.

Then have each guest feel the bag and try to guess the contents. Have them write their guesses on a piece of paper. After everyone has had a chance to feel the bag, the contents are shown and the person with the most number of correct guesses gets the bag of male-oriented items.

Here’s a fun idea. This game might take the whole of the bachelorette party, but it’s a fun one that involves all the guests, helps them get to know one another and provides video proof you all had a good time. You need video cameras for this game, so if the host only has one camera, be sure to ask guests to bring more video cameras. Make sure you also have enough blank tapes for this game.

Depending on the number of guests at the party, you’ll divide the party into two or more groups. It’s best to divide the group into teams small enough so that the whole team can get into one car. So you’ll have maybe five women on each team. You’ll give each team a video camera, blank videotapes and a list of “scavenger hunt” type activities they must perform and tape.

Some video scavenger hunt ideas include having a complete stranger sing the national anthem, having a member of the team sing “I wish I were an Oscar Meyer weiner” in the meat section of the grocery store, or taping a stranger who can do a good impersonation of John Wayne.

The teams should be given a specific amount of time in which to complete their assigned tasks, and then return to the party location (ideally, a home, in this case). The videos are viewed and the teams vote on the team that did the best. Bonus points are given for the team that creates their own stunts.

MORE READING:

Life Insurance

All-Inclusive Vacations Can Save You Money

Bargain Travel: All-Inclusive Cruises

Share
By Bachelorette Parties, Entertainment, General, Wedding Planner, Weddings , , Leave a Comment

How to Resolve Issues on Your Credit Report

One thing a lot of people want to know is how to fight a dispute they have with the credit bureau. This can be a tricky issue.

How does the system work?

Basically each of the finance companies you work with reports to either Equifax, Expedia, or TransUnion.

But very few report to all three.

And because of this, you never know where an error will occur, because your report might be flawless with one bureau and not with another. It just depends on which merchant made the mistake.

And mistakes happen all the time.

More than 50% of people have one or more errors on their report. This could easily affect them when they apply for their next loan, mortgage or credit card.

Don’t the bureaus check for accuracy from time to time? No they don’t. These glitches will never get repaired unless you do something about them.

So how do you file a dispute? Here are the three steps you need to take:

#1) Call up the finance company the mistake occurred with.

Verify with them that you made the payment on time. If they confirm it, you need to file your dispute.

But will the credit bureaus even pay attention to you? Yes, because they are required by law to look into every claim filed with them.

How long will it take?

They have to get in touch with the merchant in five days or less, and reach their decision within thirty days.

#2) Send the bureau a letter.

Tell them exactly which transaction you have issue with. Don’t be vague.

What do you say?

There are plenty of dispute letters online you can use for reference. But essentially you just want to let them know that you found a mistake(s) on your report and detail the mistake.

Make sure to include documents that verify your claim, such as cashed checks, etc. This makes it much more likely to be resolved.

#3) Send it via certified mail.

Then write yourself a note somewhere to remind yourself to check in on them after thirty days.

What if they exceed this time limit?

Then call them up and see what’s going on. After all, you have a legal right to an answer within this time, and you need to hold them to it.

The bottom line: you need to be proactive about your credit score. If you aren’t, then you could easily have mistakes that negatively affect you for seven years down the road.

And it would be smart to check in with your report every few months to verify everything is still correct. Almost nobody does this, but making this a habit is smart. Just make the date on your calendar three months from now so you don’t forget.

FURTHER READING:

Tips for Paying Off Credit Card Debt, Part 1

Tips for Paying Off Credit Card Debt, Part 2

Share
By General , Leave a Comment

How to Get Started With Credit Repair

Credit Repair- Getting Started

There are all kinds of credit repair tips out there. The reality is that if you have bad credit, there tons of simple solutions. It’s very possible to improve your credit and even completely fix it in a very short time period.

How? Here are four most of the most effective strategies:

#1) Credit counselling

This will not only give you strategies for better money management, but the company will negotiate with the creditors on your behalf as well. In many instances they can reduce the amount you owe substantially.

Since they are very experienced in the industry, they have a much better chance of negotiating better terms for you than if you were to do it yourself.

#2) Look for mistakes on your credit report

One very simple and easy method to quickly improve your credit is to just scan your report. Anyone can get a copy of their report for free at least once every 12 months, so it doesn’t cost you a dime.

What if you find errors?

Then just call up the credit bureau and let them know. They will look into it. If they verify that indeed they made a mistake, they will erase it from your report.

This will instantly improve your credit score. And since mistakes are quite common, there’s a good chance of this working.

And don’t give up.

Even if they don’t remove something the first time, keep after them. It might take two to three months, but eventually you can get that erroneous late payment taken off.

#3) Pay on time

This is one of the simplest methods to raise your credit. It’s so obvious it might not seem worth mentioning, but it’s one of the most important tips of all.

What if you can’t pay on time?

If this isn’t possible because you have too much debt, attempt to get a consolidation loan. This might reduce the amount you owe, and it also makes it easier for you to pay them.

#4) Build up your investments

Instead of spending on things you don’t need, start putting a certain percentage of your money away every month for investing. This is easily one of the best methods to repair your credit.

But be wary of scams.

Remember, there are many firms that go after people with bad credit. They claim they are going to help them you raise your score. But often times they just take your money and disappear.

How do you spot those companies?

Basically, if they charge you a huge upfront fee, you know they are dishonest. Also, if they say to dispute everything on your credit report even if it’s right, it’s certain they are not legit.

By implementing these tips, one at a time, you can improve your overall credit rating and start reaping the benefits of having a high credit score.

FURTHER READING:

Emergency Fund 101: How to Save Money for Unexpected Expenses

The Best Ways to Save $25 Per Week

How to Transform Your Money Mindset

Share
By General , , Leave a Comment