Chapter 13 also makes it easier to repay debt since it effectively consolidates all the listed debt into one payment that can be made to the trustee monthly. In the case of what’s called a “cramdown,” Chapter 13 may even allow a debtor to reduce the amount owed on their secured debt by reducing the balance to match the value of the underlying collateral and effectively reducing the interest.
There’s a possibility that a third-party debt collector will sue you if you don’t agree to make payments on your debt, regardless of whether you actually owe the money. If you do receive a court summons, do not ignore it, Rheingold said. Be sure to show up on your appointed date, with an attorney if you can, to make sure that the court doesn’t rubber-stamp a judgment against you.
Credit repair can involve fixing your bad credit in any way, shape or form, but when most people use the term ‘credit repair’, they’re referring to the process of disputing errors on credit reports. You can go through this dispute process for free with each of the credit bureaus on your own. This involves filing a formal dispute with the credit bureau(s) in question either online or via snail mail.
I do not agree with the secured card info you've provided.  They are great tools when used correctly.  You can find one with no/small annual fee.  The interest rate won't come into play if you pay your balance in full each month.  Even if you don't pay in full, the interest on a very low balance is a non-factor.  Alomst any credit union will allow you to open an account with as little as $5 and secured card with $300/500.  My card is $500 and I never charge more than $150(30%).  It takes will power to not max it out.  You don;t want to fall back into old habits (if that is what got you into this situation in the first place).
One of the quick credit repair tactics to consider first is seeing if you can increase the credit limits on your current accounts. And this is just a matter of reaching out to your credit card companies and requesting a credit limit increase. According to FICO, 30% of your credit score is tied to the amount owed on your credit accounts. A primary way they evaluate this is something called your credit utilization ratio. The ratio is simply a matter of how much you owe vs your credit limits.
Survey of Consumer Expectations, © 2013-2017 Federal Reserve Bank of New York (FRBNY). The SCE data are available without charge at http://www.newyorkfed.org/microeconomics/sce and may be used subject to license terms posted there. FRBNY disclaims any responsibility or legal liability for this analysis and interpretation of Survey of Consumer Expectations data.
But even if you have a low credit score, go ahead and do the research to see if you can find a better deal than the one you have right now. "Those with the best credit scores typically qualify for the best rates on their new personal loans, but don't let an average or even poor score keep you from requesting quotes," says Norris. "This is especially true if you have more than $10,000 in credit card debt and those cards charge exorbitant interest rates, which most of them do."

You cannot sign up for new credit cards, nor can you use the ones you have. While it may sound unreasonable to bar you from using credit, the point of your debt management plan is helping you dig your way out. “The last thing you want to be doing is running up more high-interest debt on the side,” said McClary. “You’re not doing yourself any favors in that situation.”


If you want to learn how to repair credit fast, you need to learn how credit score works. There are five different factors that are utilized by credit scoring companies to discover that magical three digital number. What many people do not realize is that, through understanding these five factors, you not only have greater control over your credit score, but now you can begin utilizing credit to your advantage. Here are the five factors used to create someone’s credit score:

I have had my identity stolen and when I became aware of this I was almost 7,000.00 in DEBT, so after getting many letters from the credit card companies that I did not apply for these cards and my information was stolen.  Along with a Police Report I  typed many letters and got the cards  removed from my credit report But, As this happened I watched my credit score go DOWN VERY QUICKLY, I was shocked I was the victim and my credit score just kept going down, down, down. Now I have POOR credit I did obtain 3 credit cards and always pay the card off monthly, Does this help me by paying them off every month or not?? But just a note KEEP YOUR INFORMATION THAT IS PRIVATE, PRIVATE IN A SAFE!! THE PERSON WHO DID THIS WAS MY X PARTNER OF 17 YEARS.    


If you have a rewards card, you may be tempted to spend more money than you have just to earn rewards. As a result, you may need to rethink why you’re using your credit card. You may come to the conclusion that a rewards card isn’t the best option for you. That doesn’t mean you can’t still use credit cards — there are plenty of credit cards you can choose that are basic and don’t have rewards.

If you don’t address the exact cause of your bad credit, the damage is likely to worsen the longer it goes untreated. For example, if you’ve missed a few credit-card payments, repaying at least the minimum amount needed to change your account’s status from “delinquent” to “paid” on your credit reports will prevent your score from falling further. The same is true of collections accounts, tax liens and other derogatory marks — at least to a certain extent.
However, each model weights the information differently. This means that a FICO® Score cannot be compared directly to a VantageScore® or an Equifax Risk Score. For example, a VantageScore® does not count paid items in collections against you. However, a FICO® Score counts all collections items against you, even if you’ve paid them. Additionally, the VantageScore® counts outstanding debt against you, but the FICO® Score only considers how much credit card debt you have relative to your available credit.

Did you just get a tax refund, a bonus, a raise or an inheritance? Instead of spreading it out and making small extra payments to all of your debts, opt for the snowball method. Consider paying as much as you can towards the debt with the lowest balance so you can reduce or eliminate it entirely (while keeping the account open). This reduces your credit utilization dramatically and can increase your credit score just as dramatically and quickly. Reducing your credit utilization from 50% of your credit limit down to 30% of your credit limit can result in a 50-point score lift, according to the VantageScore report.
Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.
Collections – If there are collections on your credit report, check to be sure there are not multiple reports of the same unpaid bills. Collection accounts are bought and sold, so the same information could be reported by more than one agency, which would make your credit history look worse than it is. Send documentation to prove the debt is listed more than once.
"Unlike a credit card exchange, where you swipe your card and get it back, you actually give away your cash when you spend it," says Joshua Schumm, a financial coach who owns Kansas Financial Coaching in Hutchinson, Kansas. Using cash "creates a loss-type feeling in your mind and makes you less likely to make impulse purchases." Schumm says that until he and his wife began using cash at the grocery store, they often missed their budget goal. "Now, with cash, we can't overspend it," he says.
Taking out a loan should be a relatively seamless process. There are a lot of lenders to choose from, so conducting research to see which financial institutions provide the best — and worst — user experience can save you a lot of headaches. Browse each bank’s website to review customer service contact options, read reviews and search social media to see what people are saying about your top choices.

Before you consolidate credit cards, make sure you have a clear payment plan that can help you tackle your debt. Beware of simply moving your debt from credit cards to another form of debt; it may feel like you’re suddenly debt-free but you are definitely not. You’ve simply reorganized your debt and it should become more manageable now. If you fail to make sizeable, consistent payments toward your debt, you could find yourself back in the same cycle of debt. Also, when selecting your consolidation method — for example, an intro 0% APR credit card, personal loan, etc. — be sure to look closely at the fees you may be charged. The fees are typically outweighed by the amount you save in interest, but it’s a good idea to review them.
Disclaimer: Editorial and user-generated content is not provided or commissioned by financial institutions. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are WalletHub advertising partners. Our content is intended for informational purposes only, and we encourage everyone to respect our content guidelines. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Here’s a good example of when a reputable credit repair service can help you do something you may not be able to accomplish yourself. If you have a collection account that’s been sold to a few different debt collectors, it may appear on your credit report multiple times. That information is accurate but having that one debt dinging your credit score multiple times may not meet the “fair” standard Padawer mentioned.

All this program takes is the ability to mail a certified letter to the credit reporting agencies.  The ebook has step-by-step instructions on what to do, how to do it, and when to it.  Everything is included in this kit.  You will have the mailing addresses for the CRA’s and dispute letter templates ready to go along with an example dispute to show you how it’s done!

If we can stress any point more than anything- do not forget to make a payment. If you miss a payment in effort to pay off another line of credit, this can debilitate your credit score more than you think. There have been cases of people claiming a decrease in credit score up to 100 points, which has also been confirmed by Equifax. If you are in a situation trying to pay off multiple loans, start small and tick with the minimum payment. Build a budget where you can effectively manage all your bills and ensure that each of them get paid. Only then can you consider putting more money aside for to eliminate debt quicker However, you should never sacrifice an on-time payment for anything. Otherwise, you are sacrificing 35% of your total credit score.
Credit scoring companies analyze consumer credit reports. They glean data from the reports and create algorithms that determine consumer borrowing risk. A credit score is a number that represents the risk profile of a borrower. Credit scores influence a bank’s decisions to lend money to consumers. People with high credit scores will find the most attractive borrowing rates because that signals to lenders that they are less risky. Those with low credit scores will struggle to find credit at all.
I have two credit cards, one from a credit union with just over 10% interest and one from Chase with 9.99% interest. I just asked the credit union to increase my credit line to $20k so I can consolidate the two, as I thought it’d be best to keep my credit union account. I have a credit card through Wells Fargo that has an $18k limit, but it’s zero’d out and I don’t use it. Will this hurt my credit score? It’s in the mid-700’s.
The key to this strategy is obtaining more credit, but not using more credit. In other words, if your limit goes up $1,000, don’t go out and charge half of it. Think of the boost as a way to save money later when you apply for an auto loan, home loan or another form of long-term debt where a high credit score will likely result in big savings via a lower interest rate.
Taking out a loan should be a relatively seamless process. There are a lot of lenders to choose from, so conducting research to see which financial institutions provide the best — and worst — user experience can save you a lot of headaches. Browse each bank’s website to review customer service contact options, read reviews and search social media to see what people are saying about your top choices.
Omo says that reducing what you spend at restaurants could have a dramatic effect on your finances. "I had a client, a single person, who spent almost $900 a month on food, and the majority of that was eating out. [By] working with this person, I was able to get them to reduce that number by almost 50 percent and put that difference in paying off debt." Plus, in recent years, restaurant prices have been consistently climbing from month to month, according to the Consumer Price Index.
I recently took out a debt consolidation loan to pay off my credit cards and have just the one bill – however, the loan didn’t quite cover my credit cards… I also opened two new balance transfer 0% credit cards to help cut the interest of the leftover credit card debt… I still don’t quite have enough to wipe it all into 3 bills – plus, I have a previous personal loan I have 2 more years of paying… what would be the best way to distribute these funds, and balance transfers… so that I’m cutting my interest payments, upping my cashflow so that I’m not
Millions of Americans are suffering from dinged-up credit: the lingering result of the recession, the lack (until recently) of real increase in wages, the economy's sluggish growth. But a strong credit score is the backbone of an individual's financial health, and its importance goes beyond simply getting a low interest rate on a loan. A driver's credit score, for instance, is a major factor in pricing auto insurance.

The accounts section contains a detailed history of all accounts (open and closed), your balance, and your payment history associated with each account. You should be able to see month-by-month payment information for 7 years of history. Each month will have a symbol next to it that indicates whether the account was paid as expected or if it was late.
×