If you have had a JUDGMENT recorded against you, then it will show up under NEGATIVE ITEMS on your credit report.

A JUDGMENT tells anyone reviewing your credit:

• You failed to pay a credit account as promised
• Attempts to work out a repayment plan failed
• The creditor filed a COMPLAINT and you received a SUMMONS
• The creditor was awarded a JUDGMENT by default

If you do not have a current FREE CREDIT REPORT from all 3 of the major report agencies:

• Experian
• Equifax
• TransUnion

From the Credit Report, find out where or what court the judgment has been recorded.

If there is a phone or fax, great!  If not, do a little searching (yellowpages.com) to find.

Fax or mail:

• Proof of payment or release of the judgment.  A copy of the settlement agreement or actual letter from the collection agency or law firm is even better.
• Copy of cancel check(s) from your bank records.
• A brief explanation why you are requesting the judgment to be removed.

Follow the procedure for each agency. Sending to one doesn't do anything for the others!

In some cases, you can make your request online.

It may take 45-60 days to get a response or see the jugment removed.  The Credit Reporting Agency should email or mail their decision.

If positive, YOU DID IT!

If not, then try again.  You may want to call.

The credit reporting agencies want to provide accurate, up-to-date information.  As long as you have the proper "proof and/or explaination" of why the judgment should be removed or classified as "paid-as-agreed", they will work with you.

If you have a REVERSE MORTGAGE on your home, a creditor cannot garnish, levy or lien.

If you are one of the millions of people who have decided to get a Reverse Mortgage (RM) on your home to help your financial situation, and have other significant debt, you need to understand what a creditor can and cannot do.

I'm not going to discuss the pros and cons of a reverse mortgage, but only address the characteristics and how it would apply in a collection situation.

A reverse mortgage is a LOAN.  The company that sold you the reverse mortgage (RM) took into consideration how much net equity you had in your home.

Let's say it was $100,000 (doesn't matter if the home was paid for or not).

The RM company is LOANING you 70%-80% on the value of your home to be paid out:

• One-time lump sum
• Payments
• Credit Line (you use when you need to)

The RM company has determined that based on the net value of your home, your age and other factors, they  can LOAN you $XXX.00.

When you pass away or the home ownership is transferred, the LOAN, with interest, must be repaid. The idea is that at death or transfer of ownership, the RM and repayment cancel each out.

• The home owner wins and they were able to get at the equity of their home and remain living there.
• The RM company wins as they earn more money than they loaned through interest and fees.

So, can a creditor or collector GARNISH, PLACE A LIEN OR LEVY funds from your RM?

                 THE ANSWER TO ALL THESE QUESTIONS IS NO!   (BUT BE CAREFUL)

Since a RM is a loan, you do not own the home anymore.  You live there and everything stays the same, but you have "pre-sold" it to the RM Company.

Therefore, a creditor CANNOT garnish or place a lien.

What about the funds from the RM deposited in your bank account?

This is why I said "BE CAREFUL!"

A creditor that has been awarded a judgment for the claim they made against the debt you owe (credit card, personal loan, etc.) cannot apply for a garnishment or bank levy if the source to the funds are from:

• Federal Benefits (Social Security, Federal Retirement Income, Civil Service Retirement)
• Unemployment Income
• Dissability Income
• Alimony or Child Support
• Various other NON-EARNED INCOME sources including your RM income

HOWEVER....

If you CO-MINGLE funds from your RM or other sources above with the income you may be getting from a full or part-time job (W2 Income), then a creditor may be able to get at those funds.

The safest thing to do is to open up a separate bank account for the earned income and NEVER CO-MINGLE with the other sources of income.

Follow this 5 step plan to make your personal finances healthier and build a better Financial Future for you and your family.

Step #1: Set Your Money Goals

In this first step, it is tim to sit down and really think about where you want to be financially in the future.  Think about the following questions to get you started on setting your money goals:

• What part of your financial life was disappointing last year and what can you change so it is better next year?
• What part of you financial life worries causes you the me the most stress, and what safety nets can you put in place to help relieve this stress?
• What would you be proud to accomplish in the next 5 years of you financial life?

Step #2: Check Your Credit Report

Your credit report plays a huge role in your personal finances and financial future.  Each year you can pull your credit report for free from each of the three major credit reporting bureaus.  Simply go to AnnualCreditReport.com to get your Free Credit Report. 

Instead of pulling all three reprots at once, try spreading them throughout the year.  For example, pull your Equifax credit report today, then mark your calendar to pull your Experian credit report in 4 months and your Trans Union credit report in 8 months.  By doing this you will be keeping a close eye on your credit without breaking the bank!

If you want to check your credit score for free, go to CreditKarma.com

Setp #3: Research your Debt Elimination Options

If you have credit card debt, retail store cards, medical bills or other unsecured debts, you have several options available to you to help eliminate that debt once and for all while saving you time and money.

• If you plan to pay off your debt on your own, consider adjusting how you make your payments.  The Debt Snowball is a popular method to help you pay down your debts fast. 
• If you are able to keep up with your payments, but your high interest rates are keeping you from eliminating your debt, a Debt Consolidation Program may be a great option for you. 
• If you are struggling to keep up with your minimum payments or you have already fallen behind, you should consider enrolling in a Debt Settlement Program which can reduce your monthy payments and eliminate your debt for much less than what you owe!

Step #4: Create a Budget

If you are like so many others out there living paycheck to paycheck, creating a budget can help you to start saving for your retirement and start building an emergency fund.

Start by writing down everything you spend for an entire month.  Once you have done this, take a look at how you’ve been spending your money, and see where you can cut back in order to put some money into savings or pay down your debt.

Step #5: Set up Automatic Retirement Contributions

Participating in a retirement plan at work is a great way to make sure you’re consistently investing for your future. If you don’t have a workplace plan you can invest in an IRA as long as you have some amount of earned income.

Set up a direct deposit so a percentage of your paycheck is automatically invested in your IRA. Or set up an automatic transfer from your bank account to your IRA once a month or every payday. Automating your financial goals is the best way to make sure you accomplish them.

Debt collector harassment can make your life miserable!

I read an article today from the Oreonian entiltled "Eugene woman sues after bill collector sends cops to house".

You can click on the link above to get the complete story, but here's a summary:

• Retired, 85 year old woman got behind on her Wells Fargo Mastercard
• Wells Fargo turned the account over to a collector
• Collector repeatedly calls and harasses her
• Collector uses one of the cruelist, unprofession and I think, illegal tactics that I've ever heard of.  He calls the police and tells them she is suicidal and of course they come to her house.
• As a result, they "forcibly" took her to an emergency room with a warning not to leave (according to the claim)
• Now she has additional medical bills from the fiasco!

I do not know what prompted the collectors action.  Hopefully, the lawsuit will sort this all out.

But, are you serious?  Can a debt collector harass a senior citizen to the point of possible suicide and not suffer severe consequenses? 

It seems so...but we have rights.  Hopefully her lawsuit will help.

The Fair Debt Collection Practice Act  is the law about what a collector can and cannot do, and in my opinion, this collector has violated the law.

According to the FDCPA, these are practices that are off limits for debt collectors?

Harassment

Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

• use threats of violence or harm;
• publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
• use obscene or profane language; or
• repeatedly use the phone to annoy someone.

False statements

Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

• falsely claim that they are attorneys or government representatives;
• falsely claim that you have committed a crime;
• falsely represent that they operate or work for a credit reporting company;
• misrepresent the amount you owe;
• indicate that papers they send you are legal forms if they aren’t; or
• indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying:

• you will be arrested if you don’t pay your debt;
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
• legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

• give false credit information about you to anyone, including a credit reporting company;
• send you anything that looks like an official document from a court or government agency if it isn’t; or
• use a false company name.

Unfair practices

Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

• try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law allows the charge;
• deposit a post-dated check early
• take or threaten to take your property unless it can be done legally
• contact you by postcard.

If you or someone you know (especially a senior citizen) is receiving harassing calls and/or illegal activity from a debt collector, you have options:

• Click here for a free guide on HOW TO STOP COLLECTION CALLS.
• Contact your states attorney general a file a complaint. 

           In Oregon, Click Here:

 photo by: BLW Photography

If you have fallen behind on your credit card payments, you know just how annoying the debt collector calls can be. Some people are so bothered by creditor calls that they change their phone number or even disconnect their phone to get some peace and quiet. 

Although your creditors have the right to attempt to collect an unpaid debt, a creditor must do this within the limitations for the Fair Debt Collection Practices Act (FDCP).

A CREDITOR CANNOT:

• Make frequent or harassing calls!  In other words, they cannot dial you you 10 times a day!
• Call you at work!  If you are getting calls at work, it could jeapordize your job and your employer will certainly not think well of you!
• Make threats of legal action without following through!  "If you don't send us money now, we will start a lawsuit against you".  Well, if they say it, they better start it, or you can file a complaint with your state attorney general.
• Call family or friend and tell them you are  delienquent!  They can call a family member or friend in an attempt to get information about how they can contact you, but they cannot discuss your debt with them or mention your situation in any way!

Download this FREE GUIDE -->

How To Stop Collection Calls

The best way to stop collection calls is to write a letter to the collector stating that you intend to pay your bill, but you cannot at this time.  Tell them that you are giving them legal notice according to the FDCPA to stop calling you immediately or you will report them to the attorney general.

It is best to mail the letter as registered mail so that you have proof that they received it.

After a collector receives the request in writing, they can only call you one more time to state they received it and what their intentions are in the future. If they call you again, it is time to to go online to your state attorney general's site and file a complaint.

You can try to simply fax the letter to the credior.  In most cases this will stop the calls, but legally the creditor does not have to stop without the written request by mail. In some cases, a creditor may honor you request by phone, but this doesn't happen often.

If you are intimidated by collectors, then we can help. Simply click the link below to find out about your options.

photo by: Mykl Roventine

When you are facing a mountain of credit card debt, many people get confused and overwhelmed with all of the information that is out there to "help".  Over the last year or so, we added many posts to this blog about various options for Credit Card Debt Elimination. 

I thought it might be helpful to pull together what I find to be the most helpful posts on your best 3 Credit Card Debt Elimination Options:

#1 If you can keep up with your current payments, you should try to eliminate your debt with a Debt Snowball.  Click on the link below to read a post about what a Debt Snowball is and how to use it.

What is a Debt Snowball?

#2 If you have fallen behind on your debts, but would be able to keep up with your payments if you could just get caught up, Debt Consolidation may be your best Deb Elimination option!  A Debt Consolidation program can help reduce your monthly payments, lower the interest rate your credit card companies are charging, and put you on a "level payment plan" to get you out of debt FAST!  Click on the link below to read a post all about what a Debt Consolidation program can do for you.

Debt Consolidation Program vs Debt Consolidation Loan

#3 If you have had a drastic change to your monthly finances (loss of job, divorce, illness...) or if you are behind on your credit card or other unsecured debt payments by more than a couple of months, Debt Settlement is probably going to be your best option. Click on the link below to learn about Debt settlement and how it can help you reduce your monthly payment, get rid of interest and fees altogether, and eliminate your debt for HALF of what you owe!

Debt Relief Options: Why Debt Settlement May Be Your Best Choice

If you still have questions about the options available to you, or if you want to find out how to get started with these programs, our Debt Solution Specialists can help.  Feel free to ask a question in the comment thread below, call our toll-free number, or click on the button at the bottom of the page for a FREE DEBT ANALYSIS!  We are here to help find the right solution for your situation.

1-877-492-4109

Does reading your credit report make you feel like this? 

Getting a copy of your credit report is simple to do right from your home computer using AnnualCreditReport.com.  When you have your credit report, you'll be able to see what your creditors are saying about you. However, credit reports can be a little confusing and very intimidating. In this post, you'll find a step-by-step explanation of how to read and interpret your credit report.

Section One: Your Personal Information

Here you'll find identifying information like your:

• name
• current address
• social security number
• date of birth
• spouse's name (if applicable)

Don't just skim over this section. Make sure everything is correct. One bad piece of information and the credit history listed on your report could be wrong.

Section Two: Credit History

The Credit History section contains a list of your open and paid credit accounts and indicates any late payments reported by your creditors. It is extremely important to read through this section very thoroughly. If you find any information that is incorrect or accounts that don't belong to you, you'll need to submit a dispute letter to the credit-reporting agency.

• Company Name - identifies the company that is reporting the information.
• Account Number - lists your account number with the company.
• Whose Account - Indicates who is responsible for the account and the type of participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:
  
  
  • I - Individual
  • U - Un-designated
  • J - Joint
  • A - Authorized User
  • M - Maker
  • T - Terminated
  • C - Co-maker/Co-signer
  • S - Shared
• Date Opened - This is the month and year you opened the account with the credit grantor.
• Months Reviewed - Lists the number of months the account history has been reported.
• Last Activity - Indicates the date of the last activity on the account. This may be the date of your last payment or last charge.
• High Credit - Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.
• Terms - For installment loans, the number of installments may be listed or the amount of the monthly payments. For revolving accounts, this column is often left blank.
• Balance - Indicates the amount owed on the account at the time it was reported.
• Past Due - This column lists any amount past due at the time the information was reported.
• Status - A combination of letters and numbers are used to indicate the type of account of the timeliness of payment. Abbreviations for the type of account are as follows:
  
  
  • O - Open
  • R - Revolving
  • I - Installment
• Date Reported - Indicates the last time information on this account was updated by your creditor.

Section Three: Collection Accounts

If you have accounts that have been referred to collection agencies in the last seven years, this is where they will be reported. The name of the collection agency will be listed along with the amount you owe and, in some cases, their contact information. If a collection is listed on your report that doesn't look familiar to you, contact the credit bureau and submit a dispute letter.

Section Four: Public Records

Here you'll find a listing of public record items that reflect your history of meeting financial obligations. Such as:

• Bankruptcy records
• Tax liens
• Judgments
• Collection accounts
• Overdue child support

Look closely at all the information listed here. If anything is mistaken, contact the credit bureau and submit a dispute letter.

Section Five: Additional Information

This section consists primarily of former addresses and past employers as reported by your creditors.

Section Six: Inquiries

Contains a list of the businesses that have received your credit report in the last 24 months. If you find the names of businesses that sound unfamiliar, you should find out who they are and why they're looking at your credit! The credit-reporting agency may be able to help you with contact information.

If you find out that you have more debt that you thought and need help ELIMINATING YOUR DEBT once and for all, our Debt Solutions Specialist can help you find the right program to fit your goals.  Click the link below to get a FREE Debt Summary based on your debt and start heading towards becoming debt free today!

photo by: Kay Kim

If you have accumulated a substantial amount of unsecured credit card debt, you may be tempted to try Do It Yourself Debt Settlement.

Although it is possible, most people who are inexperienced in dealing with debt collectors end up paying much more than they should.

Why does Do It yourself Debt Settlement end up costing you more?

There are several reasons, but the most important is that debt collectors are for the most part, TRAINED PROFESSIONALS whose only job is to get as much money out of you as possible!

They don't care about your circumstances or why you have fallen behind, and since most of them are paid on commission, they can get mean when trying to get you to pay up.

Collection agencies and Law firms that deal with collections will throw around terms like:

• LEGAL ACTION
• LAWSUIT
• WAGE GARNISHMENT
• LEVY

This scares the average person into agreeing to a monthly payment plan they can't afford or a settlement for 75%-80% of the balance.  A reputable Debt Settlement agency knows how to deal with these collectors and how to get you the best deal possible.

Here is a real life example of a settlement that was just completed by our Settlement Specialists:

Our client was a single female and was unemployed for a long period of time. As a last resort, she used her credit cards to buy groceries, gasoline, and sometimes cash advances to pay her rent. 

One of her cards was a Visa Card and after charge-off was given to a collection agency.  After several unsuccessful attempts to "work something out" with the collection agency, she contacted us to find out what her Debt Relief Options were.

She decided that Debt Settlement was her best option, and our Debt Settlement specialists went to work!

The original balance was approximately $1,400, but after moving around from collector to collector , it was purchased by a "LAW FIRM".

The balance had grown to more than $2,500 as over $1,100 had been added in interest, late fees, and so-called legal fees.

After going back and forth with the collector, our Debt settlement Specialists were able to negotiate the debt down to just $700 which was 50% of the original amount but only 28% of the RIDICULOUSLY INFLATED current balance.

Yes, it is possible for you to negotiate settlements on your own, but after 10 years of experience in helping hundreds of clients settle debts, avoid garnishment and bankruptcy, I believe in the long run the average person will end up paying much more than necessary.

If you need help settling your debts, our Debt Solutions Specialist are here to help.  

1-877-492-4109

Or simply click on the link below for a Free Debt Elimination Analysis!

If you have fallen behind on your credit card payments, you know just how annoying the debt collector calls can be. Some people are so bothered by their creditors ongoing calls that they change their phone number or even disconnect their phone to get some peace and quiet. Although those are good options, they really only need to be uses as a very last resort. 

A little education can go a long way.  Here is what you need to know to stop those collection calls once and for all! 

When Can Debt Collectors Call?

The Fair Debt Collection Practices Act (FDCPA) is the Federal law that says what debt collectors can and can't do. They aren't to call you about a debt that you don't owe. When you are first contacted by a collection agency, you have the right to request them to verify the debt is yours. If the debt collector can't come back with proof that you owe the debt, they're not allowed to contact you anymore.

Even without sending a validation request, debt collectors have certain rules they must follow when it comes to contacting you over the phone. They can't call you before 8 a.m. or after 9 p.m. your local time. They can't call you repeatedly, and they can't call you at anytime you've previously stated is inconvenient.

Stop Debt Collection Calls

All you have to do to stop debt collectors from calling you is tell them that you prefer to communicate with them in writing. Written communication works in your favor because it gives you a record of everything that is said. If the debt collector violate the FDCPA, you have written proof of that violation. Keep in mind that, by law, the debt collector does not have to honor this request.

If the debt collector does not honor your request to communicate with you in writing, the next best way to stop debt collectors from calling you is by sending what is known as a cease and desist letter. In the letter, state that the collector should cease and desist further communication with you. Note that the cease and desist letter only applies to debt collectors, not the original creditor.

What Happens After you send the Cease and Desist?

Once the collection agency receives your cease and desist letter they can communicate with you once more, via mail, letting you know one of three things.

1. further efforts to collect the debt are terminated
2. Certain actions may be taken by the debt collector
3. The debt collector is definitely going to take certain actions.

When you send the cease and desist letter to the debt collector, send it via certified mail with return receipt requested. This will provide proof that the letter was sent and received. If the debt collector communicates with you beyond the single instance allowed by law, this evidence will allow you to seek punitive action against the debt collector.

photo by: stevendepolo

There is a way to STOP WAGE GARNISHMENT, but it is easier to prevent than to stop!

Most states allow a creditor who has been awarded a judgment concerning a debt owed to apply for a writ of garnishment that would allow them to garnish up to 25% of your net income.

This would be devestating!

We get many calls asking us to help AFTER THE FACT, and although we often can and do stop wage garnishment, it is not easy. Before we share a couple of ideas or techniques to try, it is important that you understand the process of a wage garnishment:

When you don't pay the debt you owe (and for the purpose of this article, let's talk about a basic unsecured credit card), the creditor starts contacting you with letters and phone calls.

They can be very annoying and in some cases the creditors will violate the Fair Debt Collection Practice Act (FDCPA).  You can STOP the CALLS , but for now, let's talk about stopping wage garnishemnt.

If the creditor cannot get you to start paying back the debt, they may choose to file a COMPLAINT in your local county courthouse.You will receive a SUMMONS, usually hand delivered, that states that you owe the debt and have 20-30 days to respond with an ANSWER to the court.

The "ANSWER" would be your legal (has to be filed correctly and there usually is a fee) explanation why you dispute the "CLAIM" and don't owe the debt.  For 99% of those who receive a SUMMONS, they owe the debt (even though the interest and late charges added are ridiculous!), so disputing the claim is usually a waste of time and money.

At this point, YOU CANNOT IGNORE THE SUMMONS!!!!! 

If you have some money set aside, call the creditor or attorney and offer a SETTLEMENT or arrange to repay the debt in monthly installments (called a STIPULATED AGREEMENT).

A SETTLEMENT is an offer to settle the debt you owe for less than the full amount.  A creditor may accept an offer of 50%-75% if you can make it in a lump sum or possibly in 3 payments. 

A STIPULATED AGREEMENT is really just an agreement between you and the creditor/attorney to repay all of the debt at a reasonable monthly payment at a state limited interest rate. As long as you don't miss any payments, they agree to not pursue the wage garnishment.

Since they have the JUDGMENT, and know you are employed, they are guaranteed to receive 100% of the debt owed plus filing fees and court costs, so you are not in a very strong negotiating position.

If trying to Stop Wage Garnishment on our own sounds intimidating, you may need HELP! 

For a FREE ANALYSIS OF YOUR OPTIONS, contact one of our Debt Solutions Specialists at 1-877-492-4109 OR simply click the link below.

photo by: purpleapple428