Generally speaking, Chapter 13 is designed for debtors who have assets that they want to keep while still declaring bankruptcy. But, as noted above, the value of certain nonexempt assets or those used to secure debts listed in the bankruptcy may be added to the overall payment. The debtor can decide whether to then liquidate those assets or find other ways to pay off their value.
For secured debts, the value of the underlying collateral must be paid to those lenders, which can also increase your overall debt burden under the plan. And because the debts take several years to be discharged, the debtor is expected to maintain payments during that time. If they cannot, then they may find their filing dismissed and collections and foreclosure procedures restarting.
If you’re thinking about filing for bankruptcy, be aware that bankruptcy laws require that you get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust, the website of the U.S. Trustee Program. That’s the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Be wary of credit counseling organizations that say they are government-approved, but don’t appear on the list of approved organizations.
Anyone can join First Tech Federal Credit Union by becoming a member of the Financial Fitness Association for $8, or the Computer History Museum for $15. You can apply for the card without joining first. The intro 0% for 12 months and no transfer fee on balances transferred within first 90 days of account opening is for the Choice Rewards World MasterCard® from First Tech FCU. After the intro period, an APR of 11.74%-18.00% variable applies. You also Earn 20,000 Rewards Points when you spend $3,000 in your first two months.
If you have unsecured debts that qualify for a debt management plan and secured debts that don’t qualify, a debt management plan can still work. When you sign up for a debt management plan with a nonprofit agency, the credit counselor assigned to your case will offer comprehensive financial advice that can help you pay down all your debts — not just debts governed by your debt management plan.

This story is long winded and all, but the point is, it doesn't matter how bad you have screwed up. It happens to the best of people (I'm an alright kind of guy). But the only way to fix it is to put your foot down, get dirty and fix it. It won’t always be as quick as this and will most likely take a year or more to get in a good place. Then years of maintenance. But if you need a quick hit to your score in a good way, read through your reports carefully (with a credit advisor if you need to. Many personal banks will do this with your for free if you have accounts there in good standing) If it looks like there's something off or something you can fix, call your broker, go over the report with them and STRONGLY insist on a rapid rescore. They will get all your info and see what they can do.


According to VantageScore report on how credit behaviors affect your credit score, those with a low credit score may see a credit score bump of 5 to 10 points every month you use responsible credit behavior such as making on-time payments. And, you may see larger jumps of 35 to 50 points or even more if your score was low because of high credit utilization and you make a large lump sum payment to one of your cards and keep the balance low.
One of the main benefits of consolidating your credit card debt is getting a reduced interest rate. Reducing your interest rate allows you to lower your monthly payment and pay off your debts sooner. As a result, if you can’t lower your interest rates by consolidating your credit card debt, then it is probably not worth the extra cost and fees you will have to incur to do it.

The debt management companies will refrain from making payments and attempt to negotiate a settlement with the creditors on your behalf. In general, credit card companies will collect aggressively for the first 180 days. After 180 days, the debt is written off. Many banks will then sell that debt to collection agencies at a fraction of the face value. Collection agencies are usually willing to take a discounted settlement from the borrower, because they did not pay full price for the debt. These programs can take a couple of years to complete and the negative information stays on your credit report for seven years.


The fastest way to repair credit is to START NOW. We’ve been repairing credit on a pay per deletion basis for 8 years and the biggest delay we see is the inability of prospects to just get started. I speak to hundreds of clients a year that i first spoke to 3-4 years ago who just now decided to get started. If they started when we first spoke they would have had their credit fixed quickly. Not instantly.
Applying for and opening up a new credit card increases your overall credit limit compared to the amount you have used. This, too, can result in a nice credit score bump the following month, but only works if you have good credit. One drawback: You may initially receive a 10 to 25-point new credit score ding which will readjust after a few months of responsible credit behavior.
The Sunrise Banks Credit Builders Program, for example, places loan funds into a Certificate of Deposit (CD) for the borrower. The CD earns interest as the borrower repays the loan, which can be withdrawn when it’s paid in full. Consumers can borrow $500, $1,000 or $1,500, and they are assigned a repayment schedule of monthly principal and interest payments. Payments are reported to Experian, Transunion and Equifax.
In some cases, it might be difficult to determine what to include as far as supporting documentation goes — that’s another way a credit repair company can help you. For example, if you’re a victim of identity theft and a fraudulent account is appearing on your credit report, it can be tough to prove it isn’t yours since you naturally don’t have any documents relating to the account.
If you have missed payments, get current and stay current: the longer you pay your bills on time after being late, the more your FICO Scores should increase. Older credit problems count for less, so poor credit performance won't haunt you forever. The impact of past credit problems on your FICO Scores fades as time passes and as recent good payment patterns show up on your credit report. And good FICO Scores weigh any credit problems against the positive information that says you're managing your credit well.
Those with poor credit or no credit can obtain a low credit limit secured credit card (by putting up a security deposit). This is reported to the credit bureaus as a regular credit card and allows you to build a positive payment history quickly. Eventually, the credit card company (and others) will offer you a higher traditional credit limit without the security.

A good credit repair company will first pull your credit reports from each of the three major credit reporting agencies to pinpoint your credit issues. Why all three? Because each credit reporting agency has its own “data furnishers” (aka lenders, credit card companies, debt collectors, etc.), who report your credit information to them. And there may be errors that appear on one of your credit reports, but don’t appear on the others


We recently completed a debt consolidation loan with you and were so impressed on how quickly and less painful it was to apply and get an approval. I have been in the banking industry for 30 years so I am well educated on the hoops some institutions make you jump through to get a loan. We were so impressed that we decided to upgrade to a new car, so I applied this morning for a used vehicle loan. Incredibly, five hours later I received an email; you had two simple questions and didn't need further income documentation since you already had it on file. About 15 minutes after that call, I received the approved loan email; that's just incredible.
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.
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.    
Mathematically, the best balance transfer credit cards are no fee, 0% intro APR offers. You literally pay nothing to transfer your balance and can save hundreds of dollars in interest had you left your balance on a high APR card. Check out our list of the best no-fee balance transfer cards here. However, those cards tend to have shorter intro periods of 15 months or less, so you may need more time to pay off your balance.
Credit card consolidation can affect your credit in many ways, depending on which strategy you choose. For example, if you’re consolidating multiple balances onto one credit card, you’ll want to avoid maxing out that card’s credit limit because that will hurt your credit utilization rate (how much debt you’re carrying compared to your total credit limit).
When your financial health is at stake, you need a lender you can trust. Unfortunately, some financial institutions make it difficult to find all the information you need to make an educated decision. This can cause you to inadvertently sign up for a misleading loan that doesn’t serve your best interests. If you can’t easily find the answers to any questions you may have about a debt consolidation loan, you may want to consider another lender.
Rapid rescoring is for people who are in the process of applying for a mortgage or other type of major loan and, because of their low credit scores, are being denied credit or offered a high interest rate. Individuals cannot initiate rapid rescoring on their own, but a lender can do it on their behalf. The rapid rescoring service works with credit bureaus to quickly remove incorrect negative information from your report.
Other ways credit card consolidation can hurt your credit include applying for a new line of credit which will result in a hard inquiry on your credit report, adding a new credit account that can lower the average age of your credit history, and getting a new personal loan. All of these things will show that you have a high level of outstanding debt (your scores should improve as your remaining balance shrinks from where it started).
The right way: You should expect some fees, but avoid excessive fees when you consolidate. You don’t want to make your journey out of debt any steeper than it has to be. It’s worth noting that a debt management program has fees, but they get set by state regulation. They also get rolled into your program payments, so you don’t actually incur an extra bill.
Rates can vary depending on where you live: The rate that is advertised on LendKey is the lowest possible rate among all of its lenders, and some of these lenders are only available to residents of specific areas. So even if you have an excellent credit report, there is still a possibility that you will not receive the lowest rate, depending on geographic location.
If you see missed payments that shouldn’t have been there, write it down. Your credit score is negatively impacted when you are 30 days or more past due. If you see a balance on a card that you haven’t used in years, it could be because the account has been stolen. Misinformation in the accounts section harms your credit score, so make a note of all incorrect information.
As part of the bankruptcy completion, there are two courses you need to take. The first is the pre-filing credit counseling and the second is the pre-discharge debtor education, which is a financial management course before you make your final bankruptcy plan payment. In taking both courses now, before you file, you can learn about a variety of options for debt consolidation and ways to rework your budget and re-prioritize your spending. It’s possible that this re-education can give you the skills and resources you need to create a personal plan for organizing and tackling your debt without filing for bankruptcy.

A key indicator of your financial fitness, your debt-to-income ratio allows financial institutions to weigh your current debt against your income. This helps lenders determine your ability to keep up with new loan payments. Your debt-to-income ratio is calculated by dividing the total sum of all your monthly obligations by your gross monthly income. According to guidelines set by Wells Fargo, a good debt-to-income ratio is 35% or less, a decent one falls into the 36% to 49% range and one that needs improvement is 50% or higher.


If you are a careful money manager who fell into debt because of unusual circumstances (medical or veterinary  bill, loss of employment or some other emergency) and NOT because you spent more on your credit cards than you could afford to pay off each month, then leave the accounts open. Doing so will help your credit score, because the amount of revolving debt you have is a significant factor in your credit score. Just be sure to put the cards away. Don’t use them while you pay down your debt consolidation loan.
If you are working with a credit counselor and think you’ll miss a payment, they can take proactive steps to mitigate consequences and create a plan to get you back on track. They can even negotiate to have additional late payments or late fees reduced or waived if you miss a payment. The key to making this work is being completely open and honest about your situation and speaking with your credit counselor as soon as you realize your payment will be late.
You can start to resolve identity theft issues by visiting www.identitytheft.gov to report identity theft and get a recovery plan. This is an excellent, free website created by the Federal Trade Commission. In addition to reporting identity theft, you will receive a free action plan, and you’ll gain free access to people who can guide you through the identity resolution process.
×