Fixing collectors who lie!!

 There is no reason to feel guilty....

It really doesn’t matter how you got here, nor why you have decided to repair your credit history. The important part is you are ready to do it. I highly recommend that you bookmark this article or print it out. You will want to refer to it often. You will also need a pen and paper to take notes.








Before you can worry about repairing your credit history you must first get your affairs in order. You can only accomplish this by first getting organized. So let’s begin by creating a list of your current income. This means including everything from government checks to pension checks. Now that you know what you have coming in on a monthly basis it’s time to figure out your expenses such as car payments, school loans, utilities, rent etc. This is considered a balance sheet and by putting one together you will have an excellent idea of exactly where you are going wrong with your personal finances.




Your next step is to directly contact the creditor. If you were previously a good customer in most cases the creditor will be willing to work something out with you. This is an important step towards repairing your credit history. Once you and the creditor have come to an understanding do not forget to request that they remove any negative mark that they may have placed on your credit report. You will always want to get your mutually agreed upon agreement in writing. It will be a lot easier if you write up the agreement and send it to them along with a self addressed stamped envelope.




If you have a damaging history of delinquencies, and a poor credit score, I recommend that you write to the creditor asking them to change any charge-off to a, “paid as agreed”, or “paid in full, on-time.” The same strategies that I am sharing with you right now will also work with collection agencies and credit attorneys as well. The most important thing about using this technique is to remember… DO NOT SEND ANY MONEY UNTIL YOU HAVE AN AGREEMENT!!! In the past I have had students send a payment in with the agreement letter just to find there self standing in front of a judge, and worse than that they lost the case and ended up spending more money.

With your agreement in place you are moving in the right direction. You can keep up the good work by starting a new line of credit. This is a strategy that is often over looked and that can immediately increase your credit score by 150 points. In order to start a new line of credit all you have to do is get a secured credit card, secured loan, or a car loan. Out of the methods that I have just mentioned obtaining a secured credit card is by far the easiest one. It is also important to note that you should never let your balance go over 20% of the maximum credit offer. Get Equifax Credit Watch Gold 3-in-1 Now!

The strategies that I have just shared with you will indeed help to repair credit history, however it isn’t enough. You will also want to correct some errors that you currently have on your credit report. If you were to listen to the media you would believe that the best way to repair your credit is to use a credit repair agency. However if you were to to believe the Federal Trade Commission (which would be a wise choice) they explain that there is nothing that any other agency can do for you that you can not do for yourself. In fact they recommend that you do repair your own credit.

Bouncing Back From Bankruptcy

 Bouncing Back from Bankruptcy

Being consumed by thousands of dollars of debt can seem like an insurmountable challenge to overcome. The creditors are hounding you, you're having trouble even making minimum payments on your credit card bills, and you're facing the threat of foreclosure or repossession. Fortunately, you do have options to help you relieve your debt. While it isn't for everyone, Chapter 7 Bankruptcy is one option that you may want to consider.



The Pros

One of the greatest advantages of bankruptcy over other debt relief methods is that it is relatively quick process that allows you to restart your finances. As soon as you file for bankruptcy, creditors are legally required to stop collection attempts. If they continue to harass you, they may be held in contempt of court and fined. If you file for bankruptcy through a lawyer, he or she will handle any further interaction with the creditors on your behalf.

Under bankruptcy you can have exemptions for repossession placed on all of your necessary property, such as your house and your car. Bankruptcy gives you the chance to start debt free, without the stress of paying off gigantic credit card debts, which allows you to get your finances back in order much faster.




The Cons

A recent bankruptcy on your credit record temporarily prevents you from qualifying for a mortgage, a car loan, and lines of credit. However, since overspending with credit is what caused you to file for bankruptcy, this temporary limit on spending could be viewed as a positive. Under most banks you will not be eligible for a mortgage until 5 years have passed since your bankruptcy. Your bankruptcy will remain on your credit record for 10 years, but many creditors will grant limited lines of credit to past debtors. Need a Bankruptcy Lawyer?

One negative aspect of filing for bankruptcy is that you may feel embarrassed or feel that you are a disappointment to your family. However, filing for bankruptcy and saving your home and your car may be less embarrassing than having your home foreclosed on and your personal property repossessed.

Filing for bankruptcy isn't for everyone, but if you are overwhelmed with debt and calls from creditors, it is an option that you may want to consider. If you are in debt, a bankruptcy lawyer can review your financial situation and help you decide which debt relief strategy is best for you.


You may be stuck with feeling that you cannot recover from having to file bankruptcy.

Recovery

The first thing that you need to do after filing bankruptcy is to develop an improved credit score. Here are a few ways to go about increasing your credit score:

- Credit counselors and debt counselors are different. You don't need to get into another program that could harm your already diminished score. Credit counselors are professionals and they can help you to learn the art of being able to manage your resources so that you don't find yourself stuck again financially. They have dealt with many people in your situation and they can help to give you information to get you on the right track.



- Continually get a copy of your FICO credit score. Make sure that you read over your credit report in order check for anything that may be hindering you that shouldn't be on there. You don't need anything else in addition to the bankruptcy bringing you down.

- Tightly budget and plan your income and what you plan to spend. You will have to look into what caused you to have to file bankruptcy and then work to fix that problem so that it doesn't bring you down again. Many people don't like making budgets but this is almost a necessity for getting your finances back on track.

- Use your credit cards sensibly. You need to slowly build credit and credit cards are definitely one way to do that. But, you should hold-off on having to use your credit cards unless you need to. If you do find it necessary to use your credit cards while you are recovering from bankruptcy, then be sure to use pay them off on time and regularly and to use them sparingly. Do not quickly decrease or increase the amount of credit cards you have. Do it slowly or it could affect your score in a negative way.

- Be careful on the loans you take out. Some financial institutions have loans setup for people who are fresh out of filing for bankruptcy. Banks are in the business of making money, and they feel that they can make a lot of money by taking advantage of you by offering these loans.

If you have school loans which probably didn't get discharged in the bankruptcy, pay those back diligently, and do double or triple the payments if you can and this will help your credit score greatly. 


- Start Small

If you are looking to rebuild your credit rating as fast as possible, and want to wait a little on the big loans, then here is a way to do it. While it is possible to get a loan for something like a house, you will still have to pay a rather high interest on the loan. The fact that you declared bankruptcy earlier will remain on your credit rating for 10 full years, and every potential lender will know about it. By waiting a little, and building your credit rating, you could become eligible once again for a more attractive loan with a lower interest rate.

An easy way to build your credit up again is by getting a secure credit card. By making all your payments on time, and in full each month, your credit rating will get better before long. Having a second credit card that is wisely used can even speed up the process a little more. Then add a small loan that you are sure to be able to pay off in a short period of time.

- Use a savings account. You can start by putting just a small amount in each month, and over time, not only will this help to improve your credit score, it will also set you up with some emergency cash, just in case.

It is horrible to have to file bankruptcy. But, bad things don't last forever on your credit score. A bankruptcy can only legally stay for up to ten years on your credit score. You can get through this, and the more you are diligent in following these tips and most importantly paying your bills on time, you will be able to recover from bankruptcy and hopefully live to enjoy a successful financially sound future.


Mr. Dangerfield is an I.A.P.D.A Certified Debt Specialist whom has worked in the finance industry for over a decade. He manages www.beingbrokesuckstoday.com and is the author of "A Dangerfield Manifesto" and co-founder of SMG Holdings, the parent company of Squad Music Group, Dangerfield Artistic Entertainment SMG Publishing and Taboo Dangerfield Publishing
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