credit repair question

the prob w/ debt consolidators is that many were forced into that role after they lost their primary jobs as shady mortgage brokers and found a new role in defrauding old customers. they claim they're negotiating debt but r collecting fees from you while not actually paying your obligations. while, it is a bigger haslte looking at the derog reporting lines, it's worth the call to make sep arrangemets w/ all and set how much you can afford 2 pay them. make an offer, say 30%, and bargain from there.

 

Good luck. If you know someone who is an accountant or an attorney, they may be able to help you.

 

I don't know... basically, you have two options: 1. get a credit report and call up each creditor and work it out, or 2. pay someone else to do the same. Unfortunately, no one here has any experience with 2.

Your question is reasonable, it's also outside our experience. Have you talked to a financial advisor?

I've look on places like Lifehacker and not found anything.

 

If these items are in collection, you will actually damage your credit more by paying the collection.

I know it sounds strange but once a collection shows up on your report, it damages your credit the same whether it is paid or not. The more current it is, the more it damages your score. So, at this current time it is aging but if you pay it, it changes the date to more recent damaging your credit further.

Now, if these are not collections and you are just attempting to pay down debt, I would work with each company personally. Most of these so-called debt consolidation companies are a scam and will rip you off and at that end of it, your credit could be ruined, you can be out a ton of money, and nothing paid down.

I know you are busy but you are better off doing this yourself. I know you think you do not have time but there is always time if you really want to go something done.

It's a matter of if you want something right, do it yourself.

I use to work in the mortgage business and have worked with tons of people in repairing their credit and getting their debt under control so they could purchase a home. Pretty much every single person that hired someone to do it for them got screwed. You DO NOT want to trust someone else to take your money and pay your bills.

My recommendation is to pull her credit report off annualcreditreport.com and see what all you have out there. I would then call each company personally and tell them you are making a good faith effort to pay down your debt and want to work out a debt plan (companies appreciate this) and see what they have to offer. Remember, everything is up for negotiation so do not take their first offer. Also, be careful for settlements because they will damage your credit.

 

Debt consolidation loans may be helpful or not depends up on you.."Debt Consolidation" can many forms and can be confusing to understand at first. Be sure to about each program relative to your prioritization of these factors. Since there are a variety of debt resolution options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, bankruptcy, and other debt resolution options, it very necessary to you at least you fully concerned about that what type of option you are going to be choose because its an important decision about your finacial status.!
_______________________________
reclaim ppi
mis sold ppi
claim back ppi

 

Do not consolidate your debts. For someone in your situation the best thing to do is one of the variations of the following.

1/ pay the minimum on all debts except the one with the highest interest. Throw all extra money against the debt with the highest interest rate. WHen that is paid off throw the minimum you would have paid and the amount you were paying against the highest rate at the 2nd highest rate. Continue down the line until you are out of debt.

2/ pay the minimum on all debts except the one with the lowest balance. Throw all extra money against the debt with the lowest balance. WHen that is paid off throw the minimum you would have paid and the amount you were paying against the lowest balance at the 2nd lowest balance. Continue up the line until you are out of debt.


There are two tips to allow this to work. When you pay off the first debt do not immediately use that card or line of credit to purchase more. Buy whatever you need in cash. Consider credit like an alcoholic views booze. AVOID AT ANY COST. Pay CASH. Also feel free to call all your debtors and say words to the effect of "I have lost my job, can you give me a break on the interest rate for 6 months, I want to pay you back"

They will want to work with you and they simply want you to pay them back, not file Chapter 11 and run. Most will come to some type of arrangement.


I know you work 60 hours a week. Going forward devote 58 hours a week to work and 2 hours a week to designing a budget and getting the creditors to work with you to pay them back.


This is not some original thought I have dreamed up, this is the only sure fire way to get out of debt and is a version that all the major credit firms, books, get out of jail companies will use. The Dave Ramsey approach another poster provided is a variation on number 2 above.

The thing you HAVE TO STICK TO AS A FAMILY is to not compound your problems. Keep ONE credit card as an emergency use only card. You need credit cards to book flights, book cars, book rooms etc. But don't use it. Book whatever and then pay cash. Going forward you need to buy all things with money saved, not money borrowed. It is a B***h at first and you will see almost no progress. But by the time you have paid off the 3rd or 4th creditor you will see it working.


Unless you are a complete idiot DO NOT HIRE someone to do this. You can do it yourself. You need a budget and a plan.

PM me if you are unsure of anything in here. It will work.

 

[ame="http://www.youtube.com/watch?v=1gKX9TWRyfs"]YouTube- ZEITGEIST II ADDENDUM (FULL MOVIE!) - PLEASE SHARE[/ame]

 

I would go to fatwallet.com forum. Go to the finance section and search there. If no one has posted a question like yours, then post your question. They are very likely to help.

 

I can give you some advises myself if you are really serious about improving your credit

1- Pay off your credit cards. There is not one thing in your credit report that affects your credit score than having your credit cards close to the credit limit. For example if you have 3 credit cards and you have 5,000 in credit limit in each of them, then each credit card should mantain a balance of $1,000 and have $4,000 in available credit.

2- Pay off your collections account yourself, call them i only takes a few minutes.

If you follow the above, you credit must improve shortly.

 

debt consolidation companies are rather helpful. I tried them myself and now I'm debt free. Of course, they take fees for their servic, however, according to the new laws they are not allowed to take upfront fees and you will be charged only after actual help is provided. Anyway, good luck!

 

Some say, do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.
cftc nfa

 

My wife and I entered a program with Money Management, and now we are completely credit card debt free. It took four years, but I am so happy it's finally over.

 

Nearly all credit helpers are scammers. Just work it out yourself. It isn't that hard.