When you’ve got negative credit accounts all over your credit report, you’re going to want to do all you can to Repair Your Credit – especially if you believe the information reported is inaccurate.

Luckily, the credit bureaus understand that not all of the information they report is always correct, so they give you the option to dispute any credit account you think looks wrong via regular mail.

All 3 have since expanded their dispute departments to cover requests being made online, so you don’t even have to worry about your queries getting lost in the mail, or having to wait longer than a month for a response.  Simply sign onto the appropriate credit bureau’s website, check off which accounts you want disputed, leave an explanation for why you’re disputing the account and you’re done.

When something seems too good to be true, it usually is.  This is no excption.

The problem with keeping your disputes online only is that the process is so overly simplified that it almost completely cuts out the follow-up options you normally have available to you had you sent your dispute letters via regular mail.  Problems with the online-only approach don’t stop there; we also recommend you keep your disputes to regular, certified mail because:

You don’t get a copy of the dispute

Again, the credit bureaus’ online dispute page simply consists of you disputing an account, leaving a note on why you’re disputing it, and pushing Submit.  Once that’s done, you’re given no physical copy of the disputes for your records – something that can be easily avoided by sending the disputes via certified mail, and keeping copies for yourself.

You give up some of your rights by disputing online

If you take the time to read the Terms & Conditions of using the credit bureau’s online dispute service, you’ll see that by doing so, you’re entering into a binding arbitrary agreement with the credit bureaus that prevents you from taking them to court over your disputes.

If it comes down to it, you don’t want to give up your right to take the credit bureaus to court should they persist in reporting information that you know is inaccurate.

Once you have reviewed your credit report for innacuracies, chances are pretty good that there will be some debts left that you actually do need to re-pay.  There are great programs available to you such as Debt Consolidation and Debt Settlement that can help you eliminate your debt quickly and save you money.

Our Solutions Specialists can help you decide which program fits your situation best.  Give us a call!

1-877-492-4109

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Dealing with Debt

As the economy has declined, many consumers have been relying on credit sources such as credit cards and home equity loans for everyday spending.

But we’ve come to realize that the days of free-flowing credit are over. Banks and lenders are lowering credit limits on credit cards and scrutinizing new borrowers. If you’ve been living above your means, addicted to credit of any kind, consider this your personal financial intervention!

Face the Debt Music

Debt management is not a one-size-fits-all topic, because every debt-holder is unique. Your debt could be the result of many different circumstances such as overspending, job loss, or medical bills. You have to gauge your own situation and face up to your ability or inability to help yourself.

Bankruptcy

If you’re seriously drowning in debt, the worst case scenario is to declare bankruptcy. This is the debt management option of last resort. Because a bankruptcy can stay on your credit report for up to ten years it will affect many aspects of your life for a long time. If you’re considering this option, you’ll need to consult a bankruptcy attorney for help with some tough decisions. 

Credit Counselors

Anyone who intends to declare bankruptcy must get pre-filing credit counseling from an approved agency within six months before the filing. The agency must be approved by the U.S. Department of Justice in the judicial district where you plan to file bankruptcy. You must also complete a pre-discharge education course in order for debts to be officially satisfied.

Debt Settlement

Debt settlement is another option if you want to avoid bankruptcy. The debt negotiation industry is growing rapidly. These companies are not low-fee, non-profit counselors, but representatives who aggressively work with your creditors on your behalf to reduce debts by 50% or more!

This is an effective strategy that could result in a deep discount on the debt.

Debt Consolidation Programs

You may be eligible to enroll in a debt consolidation program. These are also called one-pay plans, because the agency collects one monthly payment from you. They distribute the money to your creditors after negotiating lower payments and interest rates on your behalf.

Correct Bad Habits

In the best case debt scenario, you’re credit rating is still good, but you’re simply living above your means (you know who you are!). Debt is usually the symptom of saving too little and spending too much, a deadly combination. There is no magic formula to make debt disappear. The solution is to permanently change your financial behavior by becoming more disciplined with your money. Is it easy? Absolutely not. But the rewards of living life without a credit addiction include much less stress and better sleep.

WHAT IS A CREDIT SCORE?

It is more like a "snapshot" rather than a "video".

When you apply for a credit card, auto loan, mortgage, or other forms of credit, the lender will request a credit report from one or more of the three major reporting agencies:

Experian

P.O. Box 2002    Allen, TX 75013     (888) 397-3742

Equifax

P.O. Box 740241   Atlanta, GA 30374  (800) 685-1111

TransUnion

P.O. Box 1000   Chester, PA 19022   (800) 888-4213

Even though the three reporting agencies above provide scores to lenders, approximately 90% come from FICO (Fair Isaac Corporation).

A credit report is basically an evaluation of your credit risk.

In other words, if the lender lends you money (makes a loan or issues a credit card), what is the likelihood that you will repay.  By comparing information from hundreds of thousands of past of past credit reports, the credit score estimates your level of risk.

Obviously, the higher the score, the lower the risk to the lender.

Different lenders interpret credit scores and reports differently, so you may have a score that is not the highest, and yet because of several factors such as:

• Payment History
• Amounts you currently owe
• Length of Credit History
• New Credit
• Types of Credit

That creditor may go ahead and aprove you.

If you  have negative items or errors on your report, you can make a request to the agency to remove those items.

If you have charged off accounts or accounts in collections, you may need to consider a Debt Management or Debt Settlement program to help take care of these.

BEWARE OF CREDIT REPAIR COMPANIES!!!

No company can remove negative items on a report unless those items have been legitimately taken care of.

Click here more receive FREE INFORMATION.

photo by: tj sceneshttp://www.flickr.com/photos/uncut/

Too much DEBT = Too much Stress

Here are 3 Tips on how to cope with DEBT and STRESS:

FIRST: FIND OUT EXACTLY WHERE YOU STAND FINANCIALLY

It may sound like a useless exercise, but believe me, the unknown is usually not as bad as you think it is.

When stress, panic, fear, whatever you call it takes over, your mind has a way of making the situation seem bigger than it really is and impossible to correct. DON'T BELIEVE IT!  Someone once said that FEAR is:

 False Evidence that Appears Real

It's time to face your F.E.A.R and find out what your reality is.  A Basic Budget can be very helpful.  Don't forget to include all of the miscellaneous items like:

• Starbucks
• McDonalds
• Movie Rentals

Those small items may seem insignificant, but they can really add up to a big chunk of your monthly budget!

SECOND: SEE IF YOU CAN FIND 3-4 EXPENDITURES THAT YOU COULD LIVE WITHOUT!

If you are $200-$300 a month short and the stress is overwhelming, could you do without (or at least cut back on):

$4.00 Latte x 5 days x 4 weeks = $80/month

$6.00 Lunch x 5 days x 4 weeks = $120/month

                                      $4.00 Movie Rental x 2 days x 4 weeks = $32

That's over $200 saved!  Could you cut back on your cable bill by eliminating some movie chanels and getting Netflix instead?  What about canceling that gym membership and walking your dog instead?  Just be creative.  There are many small ways to cut back that add upt to BIG TIME MONEY SAVED!

Remember, is the stress of "living without" a couple of things worth minimizing the stress of going deeper and deeper in debt?

THIRD: It's time to get some advise on how to deal with your debt! 

Debt Management and Debt Settlement are two programs that can:

• Stop collection calls
• Reduce you total monthly debt payment
• Lower or eliminate interest rates and late fees
• Help you become DEBT FREE in 24-48 months

REMEMBER:

• Your mind will make the problem seem greater than it really is
• There is always a solution
• It's time to TAKE ACTION

Before you attempt DO IT YOURSELF DEBT SETTLEMENT, you may want to consider what's involved.

After many years of negotiating debts for our clients, I'd have to say for the average person trying to settle debts yourself is too hard.

That's not to say that you may not be able to do it yourself, but you need to understand how the process works and how the collection agents are professionally trained to get as much money out of you as possible.

For this discussion, let's talk about unsecured debts and mainly credit cards.

If you fail to make minimum payments on time, what happens?

1.  Your next statement will show an additional LATE FEE of say $35 added to the balance.  Now your minimum payment is last month's plus this month's plus the $35 late fee, and you can't afford it.

2.  You will now most likely get a DEMAND LETTER that says your account is now DELIENQUENT and demand 3 payments plus 2 late fees. Of course by now, you really cannot afford to pay.

3.  The PHONE CALLS START! Your account is transferred to the creditors internal RECOVERY DEPARTMENT or basically their collections department.

The caller may be nice or very demanding, depending on the company.

You can and should explain your circumstances, but they are usually not very sympathetic!

4. At this point (about 3-4 months delinquent) the creditor is not ready to accept a settlement for less than the entire amount including late fees and additional interest.

Oh, by-the-way, your interest rate has been increased.  There is small print on the back of the application you signed that basically states that if you fail to make payments on time, they can INCREASE YOUR INTEREST RATE.

Although the Credit Card Act of 2009 limited the UNIVERSAL DEFAULT method of increasing rates, creditors can still:

• Increase rates
• Charge late fees
• Charge over-the-limit fees
• Charge annual fees

5.  Just before the account is set to CHARGE OFF, you may get a letter from the creditor offering a settlement. 

The settlement offer may let you have 3 OPTIONS:

1. Pay 65% of the amount due by the end of the month
2. Pay 75% of the amount due over 6 months
3. Pay 85% of the amount due over 12 months

You do the math! Not gonna happen!

SO NOW WHAT???

This is where "Do it yourself debt settlement" gets hard.

By now, you have been getting phone calls several times a day and possibly even at work!

The creditors may even be calling your friends and family!

There are legal ways to stop the calls.   FREE INFORMATION

The account has now been CHARGED OFF and sent to a collection agency. 

Now you starting getting calls and letters from the COLLECTION AGENCY, even though you sent out letters to the original creditor!

If the collectin agency finds out that you have a job, they may decide to FILE A COMPLAINT in your local courthouse.

You will now receive a SUMMONS that states the situation and that you have 20 or 30 days to "answer" or "contest" that you owe the debt.  But, since you owe the debt, that would be a waste of time and money (yes, is costs to file an "answer").

If you call the collection agency or attorney for the creditor, you may be able to negotiate an agreement whereby they stop legal action and if you repay 100% of the debt plus attorney fees and court costs!

If not, they will set a court date and win a JUDGMENT by DEFAULT.

With the default judgment, they can apply for a WRIT OF GARNISHMENT that your employer has no choice but to honor.

In most states, the amount that a creditor can garnish is 25% of your net (after tax) income.

Let's say you earn $$3,000 per month and 30% is withheld for taxes, etc. That leaves $2,100 after-tax income.

At 25% of $2,100, they would deduct $525 each month until the entire debt is repaid!  COULD YOU SURVIVE ON $1,575?

Not hardly, so you would probably end up agreeing to a STIPULATED AGREEMENT that would let you repay the entire amount at maybe $200/month at a reduced interest rate (each state is different).

Can a Debt Settlement Company do any better?

In most cases, yes.  Do It Yourself Debt Settlement takes a lot of time and if you are not trained in dealing with collectors and attorneys, you may end up paying too much or possibly being forced into bankruptcy.

Why not explore your options by requesting a

FREE CONSULTAION

Or Simply Give us a Call

1-877-492-4109

photo by: Henrique Vincente

Top 10 Things You Should Know about CONTROLLING YOUR DEBT!

#1 Americans are loaded with credit-card debt.

The average American household with at least one credit card has nearly $11,000 in credit-card debt, and the average interest rate runs in the mid to high teens at any given time.

#2 Some debt is good.

Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates.

#3 Some debt is bad.

Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay the bill in full. If there's something you really want, but it's expensive, save for it over a period of weeks or months before charging it so that you can pay the balance when it's due and avoid interest charges.

#4 Get a handle on your spending.

Most people spend thousands of dollars without much thought to what they're buying. Write down everything you spend for a month, cut back on things you don't need, and start saving the money left over or use it to reduce your debt more quickly.

#5 Pay off your highest-rate debts first.

The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on. Another option is to use the Debt Snowball.  This system focuses on paying off the smallest balances first. Either way, make a plan and stick to it.

#6 Don't fall into the minimum trap.

If you just pay the minimum due on credit-card bills, you'll barely cover the interest you owe, to say nothing of the principal. It will take you years to pay off your balance, and potentially you'll end up spending almost three times what you orriginally charged.

#7 Watch where you borrow.

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

#8 Expect the unexpected.

Build a cash cushion worth three months to six months of living expenses in case of an emergency. If you don't have an emergency fund, a broken furnace or damaged car can seriously upset your finances.

#9 Don't be so quick to pay down your mortgage.

Don't pour all your cash into paying off a mortgage if you have other debt. Mortgages tend to have lower interest rates than other debt, and you may deduct the interest you pay on the first $1 million of a mortgage loan. (If your mortgage has a high rate and you want to lower your monthly payments, consider refinancing.)

#10 Get help as soon as you need it.

If you have more debt than you can manage, get help before your debt breaks your back. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances.

NEED HELP NOW? 

Call 1-877-492-4109 Today!

Have you heard of Credit Card Skimming?  No? Well, neither had I until today and yet I was a victim of it several months ago.  I've often wondered how someone was able to clone my card and go on a shopping spree at the Home Depot.  Today I finally got my questions answered.  

Here's how they did it:

Thanks to those magnetic strips on the back of credit cards, you can pay for gas at the pump or buy groceries at the checkout with one quick swipe through a card reader.

We all love this because it is convenient, but thieves have used this technology to create a new kind of fraud -->> Credit Card Skimming. It's one more danger we must guard all watch out for and another maddening example of how crooks find ways to turn technology against us.

Here's how it works

The bad guys buy magnetic card readers (readily available online) and attach them to legitimate card readers at ATM machines, gas station pumps, movie rental kiosks, or anywhere they think they can get away with it.

The counterfeit card reader captures the credit card information of everyone who uses the machine. (On ATM machines, crooks also attach tiny video cameras to steal PIN numbers.)

They then remove the phony device and use the stored information to buy stuff online or write the data onto new magnetic strips to make counterfeit credit cards or ATM cards.

Counterfeit Credit Card Trends

Portable skimmers (small enough to fit in a palm) can be used by anyone who handles your credit card, such as a waiter. All they have to do is get your card out of your sight for a second. That's enough time to swipe it through the device, and steal your information without you suspecting a thing.

Here's an example of what a credit card skimmer would look like on an ATM machine.  Notice the tiny pinhole camera.  Who would even think to look for that?

Follow these tips to protect yourself from Credit Card Skimming:

• Don't let your credit card out of sight. Watch carefully anyone who handles your card.

• Keep track of receipts and check your credit card statements regularly to make sure you authorized all purchases.

• Report any unauthorized purchases immediately to your credit card companies.

• Don't use a credit card reader if there are any signs of tampering. Don't swipe your card through devices that offer to clean the magnetic strip. Those are scams designed to capture your credit card information.

Have you been a victim of Credit Card Skimming?  If so, how did you resolve the issue?  I'd love to hear your story.  Let's chat in the comment stream below!

photo by: shawnzrossi

Need help eliminating your credit card debt?

Our Debt Consolidation and Debt Settlement programs can get you out of debt fast and save you money.  Click on the FREE Debt Summary link to get more information!

1)  KEEP MAKING MINIMUM PAYMENTS

The credit card industry loves this!  They know that if a consumer just makes the minimum payment each month, it may take 10-15 years before they ever pay off the account.

When you add up all of the interest and fees they charge, you could end up paying 3-4 times the original amount you charged!

2)  SECOND MORTGAGE OR EQUTIY LOAN

If you have equity in your home, you may be able to qualify for a 2nd mortgage or equity line of credit.

BUT BEWARE!  Right now, these credit cards are UNSECURED.  If you default, you have not pledged anything as collateral.

If you take out a loan against your home's equity and default, your home is at risk!

On the other hand, if you are disciplined enough to pay off the 2nd or equity line quickly, you could end up saving thousands of dollars in interest and fees.

3)  DEBT MANAGEMENT PROGRAM

If you are able to make the minimum payments and maybe a little more, then you should consider a DEBT MANAGEMENT PROGRAM.

If you qualify:

• You will have ONE MONTHLY PAYMENT
• Th payment is disbursed to each of your creditors for you
• Most creditors will LOWER your INTEREST RATE and ELIMINATE late or over-the-limit fees
• Creditors will not be calling
• You should be DEBT FREE in about 48 months or so

 4) DEBT SETTLEMENT PROGRAM

It is not unusual for people in today's economy to find themselves in a financial situation they have never been in before.

This could be due to several factors including:

• Unemployment
• Reduced hours
• Medical bills
• Divorce

If this is the case and you CANNOT AFFORD THE MINIMUM PAYMENTS, much less the payments required by a Debt Management Program, the a DEBT SETTLEMENT PROGRAM may be you best option to pay off credit card debt.

In this program, an amount of money you can afford is set aside so that at some time in the future, an offer to settle your account can be made.

You may be able to settle your accounts at 50% of the balance.

But, DEBT SETTLEMENT IS NOT EASY and most people cannot do it by themselves.

You may want to consider seeking professional help.

5) BANKRUPTCY

If you cannot make the payments required by either a Debt Management Program or a Debt Settlement Program, then your only option may be bankruptcy.

DON'T PANIC!

Get an appointment with a couple of BANKRUPTCY ATTORNEYS in your area.

There should not be any charge for your initial consultation.

You most likely will qualify for a Chapter 7 or 13, and the attorney will explain the differences.

If you would like a FREE CONSULTATION with NO OBLIGATION, then click below and we will send you some information that may be very helpful.

photo by: alancleaver_2000

It seems as if debt collectors can get away with about anything.

The Fair Debt Collection Practices Act is supposed to protect consumers, yet few people know anything about it.

Most collectors are trained professionals who will:

• call you several times a day
• call at early, late or even at work
• berate you for the debt you owe
• make false statements about their intention to bring legal action
• call family or neighbors about your situation

And these are just a few of the unlawful, yes, UNLAWFUL tactics used by most collection agents.

The Fair Debt Collection Practices Act (FDCPA) spells out what a collector may or may not do, and even though you do have rights and it may be possible to bring a lawsuit against the collector for violating those rights, most people just don't have the time or money to proceed.

So, what can you do? Here's some tips that will help:

1.  Stopping collection calls at you home

The FDCPA states that if a collector receives a letter requesting that all calls stop concerning the collection of your account, they must STOP!

To get more information on how or what to do, click here.

2.  Stopping collection calls work

Not only is getting collection calls at your place of employment embarrassing, it may also get you in real trouble with the boss!

You may be able to stop the calls at work by simply telling the agent that your employer does not permit calls to the employees.

Although this may work, you should also state in your letter (above) that this request also includes your place of employment.

HOWEVER, if you have not receive calls at work yet, then don't request it in your letter (above) as it tells the agency that you hav a job!  You don't really want them to know that for as long as possible.

3.  Most of the letters you receive from a collector state something like:

"unless you dispute the validity of this debt in the next 30 days, the debt will be deemed valid".

Even if you think the debt is valid, it doesn't hurt to request validation.

WHY?  Because the FDCPA states that if you send a written request for validation, the collector must cease all contact until the debt is validated by a statement or some other form of validation.

If you owd much more that you can repay, it may be time to seek professional help. 

Programs such as Debt Management, Debt Settlement, or even Bankruptcy may provide you with a way to finally put an end to the harassment from collectors and get completely out of debt once for all.

For a FREE, Financial Analysis, click here.