If a collector contacts you, they could be breaking the law as they try to get you to repay debts. Rheingold said one common fraud is debt collection companies buying past-due debt for extremely low prices at “debt auctions” and then trying to collect it. Often, the debt collection company only has a little information about the debtor and no information about the actual debt. If you don’t pay, however, they may try to take you to court.
If you have medical debt, you may be wondering what options are available to you. Medical debt can be consolidated into a nonprofit debt management program, though you may not receive lower interest rates. Considering that much medical debt is already at a low or zero interest rate, this should not be a deterrent. By consolidating medical debt to a debt management program, you are simplifying your bill pay and committing to timely, consistent payments of  your medical debt. This will help you pay off your debt faster and also may have a positive impact on your credit score.
What is it? A 401(k) loan is when you borrow money from your existing 401(k) plan to pay off debts. The amount you can borrow is limited to the lesser of $50,000 or 50% of your vested balance. After you withdraw the money, a repayment plan is created that includes interest charges. You typically have five years to pay off the loan, and if you take out the loan to buy a house, your term may be extended to 10-15 years.
If you have missed multiple payments, perhaps its time to set-up payment reminders. In the digital age, you can schedule your cell-phone, laptop, and even email to remind you when a payment is due. On top of this, you can purchase sticky notes and post them around your entire home or office to remind yourself when a specific bill is due. In a lenders eyes, there should not be an excused for a missed payment. Just like the example of lending money to your friend, a lender is expecting to receive their capital back in a timely manner.
Anyone who ever had a grandmother or grandfather should know that rushing a family recipe or lovingly-crafted process never works. There are an ingredient and a philosophy that can’t be touched or seen by the human eye but can be only be missed when that special knot doesn’t hold, or the meal flops bigger than a bass on holiday – tradition. Fast credit repair is like grabbing something in a box and expecting it to taste like “grandma used to make.” Unless the grandmother was a chemist and her kitchen was stocked with additives that may or may not put a lab rat down for the count that good, old-fashioned taste is most likely missing. Unfortunately, those who used those “pay-me-now” fast credit repair places and the rodent with digestive issues probably stand about the same chance of being approved for a new credit card. No animals are ever harmed when credit repair is done correctly – it simply takes time.

Anyone can join La Capitol Federal Credit Union by becoming a member of the Louisiana Association for Personal Financial Achievement, which costs $20. Just indicate that’s how you want to be eligible when you apply for the card – no need to join before you apply. And La Capitol accepts members from all across the country, so you don’t have to live in Louisiana to take advantage of this deal on the Rewards Visa Card from La Capitol FCU. The introductory 0% for 12 months on balance transfers applies to balances transferred within first 90 days of account opening. After the intro period, a 12.25%-18.00% variable APR applies.
You cannot pay down your debt on your own and you continue falling further and further behind. “It makes sense to file bankruptcy when you can no longer keep up with your bills,” said Leslie H. Tayne, a debt resolution attorney and founder of Tayne Law Group, based in Melville, N.Y. “If commercial creditors are breathing down your neck or if you are in danger of losing your home, it may then make sense to file bankruptcy.”
Each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it. To order, visit annualcreditreport.com, or call 1-877-322-8228. You may order reports from each of the three credit reporting companies at the same time, or you can stagger your requests throughout the year.
Credit utilization is the second most important factor when calculating an individual’s credit score. Simply, credit utilization is how much credit you have used in comparison to how much lenders have provided you. For example, if you have three credit cards with a limit of $3,000 on each card, your total credit would be $9,000. Now, say after a weekend of house decorating, you spent $4,500 on your credit cards – your credit utilization would be 50%. Credit utilization is another facet in which credit holders have complete control over. By landing your utilization in the 25%-45% bracket, your credit score will be optimized.
The Fair Debt Collection Practices Act (FDCPA), a federal law that was passed in 1978, provides guidelines on the actions that debt collectors can take when they try to get consumers to make payments on their debts. It prohibits abusive, deceptive or unfair practices and puts limits on when and how third-party debt collectors can contact people who owe money.
How it works: You can add your teen as an authorized user to your account by logging in to your online account or calling the number on the back of your card. The information required typically includes their name, birthday and SSN. After adding your teen as an authorized user, they will receive their own card that is linked to your account. They can use their card to make purchases just like you would.
A debt consolidation loan streamlines existing debts into one new loan. Most unsecured consumer debt can be consolidated, including credit cards, medical bills, utility bills, payday loans, student loans, taxes and bills sent to a collection agency. Having one monthly payment instead of several can make it easier to get your finances in order and could allow you to save money on interest fees. When shopping around, it’s essential to find a loan with a lower interest rate and better terms than the original debts.
Thrivent: Partnered with Thrivent Federal Credit Union, Thrivent Student Loan Resources offers variable rates starting at 4.13% APR and fixed rates starting at 3.99% APR. It is important to note that in order to qualify for refinancing through Thrivent, you must be a member of the Thrivent Federal Credit Union. If not already a member, borrowers can apply for membership during the student refinance application process.
This deal is easy to find – Chase is one of the biggest banks and makes this credit card deal well known. Save with a 0% Intro APR on Balance Transfers for 15 months and Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. You also get a 0% Intro APR on Purchases for 15 months on purchases and balance transfers, and $0 annual fee. After the intro period, the APR is currently 16.74% - 25.49% Variable. Plus, see monthly updates to your free FICO® Score and the reasons behind your score for free.’

Personal loans charge simple interest (as opposed to credit cards, which often have variable rates and sometimes have different rates for a credit card balance transfer and purchases on the same card) and they typically have a loan repayment term of three to five years. By consolidating your credit card debt into a personal loan, you’ll have a definite plan for paying off your old card debt.
The debt settlement process involves hard-core, long term debt collection attempts by your creditors, and serious credit score damage that will last for many years. Debt consolidation companies like National Debt Relief and Freedom Debt Relief offer to help you through the process for a fee (eating into your savings). They will instruct you to stop paying your bills, which leaves you open to lawsuits by your creditors.
How to use it effectively: The money you withdraw from your 401(k) loan should go directly to paying off your credit card debt. After your debts are paid off, payments most likely will be taken from your paychecks until your loan is repaid. If not, continue to make regular, on-time payments. While you’re repaying your loan remember to keep your job — don’t quit and avoid any actions that may lead to your dismissal so you aren’t subject to penalties.
If you’re the parent of a teenager, you might wonder if now is the right time to help them open a credit card. It can be hard to decide if they’re ready to take on the responsibility that comes with having a credit card since you need to trust that your teen has the restraint to limit spending and pay on time. Generally, we recommend introducing your teen to credit as soon as you can since credit is such a large part of life as an adult — you need credit to take out loans, apply for a mortgage and even make certain purchases. Plus, it’s important for your teenager to learn how to manage credit responsibly so they can build good credit.
Before becoming a writer, she worked as a CPA for the former BellSouth Mobility. After maxing out seven credit cards and getting into credit card debt, she decided to leave her cubicle to become a financial journalist and help others avoid the mistakes she had made. Through her books and media appearances, she's become well-known in the credit industry as a consumer advocate.
Once your cards and debts are paid off, will you cancel the credit cards? Sure, you get credit cards with zero balances and no bills out of the loan, but one of the biggest problems with debt consolidation loans is that they do nothing to change the behaviors that got you into debt in the first place. Instead, they add another creditor to your pile, and fan the flames of going into debt to pay off more debt. If you even think you might be tempted to use those cards again after paying them off, or if you're using debt consolidation as an easy out or way to avoid really looking at your budget, it's not right for you. The last thing you want is to take out a loan, pay off your cards, and then charge up your cards again—now you've done nothing but dig your hole twice as deep.
Would you like to learn more about the best way to consolidate debt? Then look no further than American Consumer Credit Counseling (ACCC). We are a non-profit credit counseling agency with more than 22 years of experience. We have helped thousands of clients become free of their financial burdens by consolidating debts. Our outstanding commitment to customer service shows with our A+ rating and accreditation through the Better Business Bureau.
Just because you have a poor credit history doesn’t mean you can’t get credit. Creditors set their own standards, and not all look at your credit history the same way. Some may look only at recent years to evaluate you for credit, and they may give you credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.
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 don’t pay a medical bill or a cell phone bill, your account may be referred to a collection agency. Once it is with an agency, they can register that debt with the credit bureau, which can have a big negative impact on your score. Most negative information will stay on your credit bureau for 7 years. Positive information will stay on your credit bureau forever, so long as you keep the account open. If you close an account with positive information, then it will typically stay on your report for about 10 years, until that account completely disappears from your credit bureau and score. If you don’t use your credit card (and therefore no payment is due), your score will not improve. You have to use credit in order to get a good score.
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They may be willing to waive some of the late penalties or spread the past due balance over few payments. Let them know you're anxious to avoid charge-off, but need some help. Your creditor may even be willing to re-age your account to show your payments as current rather than delinquent, but you'll have to actually talk to your creditors to negotiate.
I have spent the last three months looking at reviews getting mixed feelings with all thats going on here but i went ahead and called around and I must agree other places seem so sketchy compared to Reliant Credit Repair, they were so nice and so helpful and did the consultation right then and there for free and even told me that I didnt need their services, gave me free advice and told me exactly what to do and how to do it and now my credit literally went up for 60 points. I filed bankruptcy and had no open accounts all my accounts were included in bankruptcy and my 7 year mark is coming up in september, My wife on the other hand needed their services and signed up with them and seriously so far so good. we are very happy!
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.
Personal loans charge simple interest (as opposed to credit cards, which often have variable rates and sometimes have different rates for a credit card balance transfer and purchases on the same card) and they typically have a loan repayment term of three to five years. By consolidating your credit card debt into a personal loan, you’ll have a definite plan for paying off your old card debt.

The Discover it® Student Cash Back is our top pick for a student card since it has a wide range of benefits. There is a cashback program where you can earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com or wholesale clubs up to the quarterly maximum each time you activate, plus 1% unlimited cash back automatically on all other purchases. Plus, new cardmembers can benefit from Discover automatically matching all the cash back you earn at the end of your first year. Another unique perk is the good Grades Reward: Receive a $20 statement credit each school year that your GPA is 3.0 or higher, for up to five consecutive years.


A major driver of increased scores is the decreased proportion of consumers with collection items on their credit report. A credit item that falls into collections will stay on a person’s credit report for seven years. People caught in the latter end of the real estate foreclosure crisis of 2006-2011 may still have a collections item on their report today.

Even if the debt has passed the SOL in your state for suit (variable by state) and even the federal SOL for reporting (roughly 7 years from when the debt discharged) a collector may still pursue you for this money if you owe it. They will just never be able to collect it or report it if you don't allow them to, although they will certainly try and hope you are ignorant enough of the law that they get money from you.
Most employer-provided retirement plans permit participants to borrow from their own savings. Since it's your money, there's no credit check or qualifying hoops to jump through. You can generally borrow up to half of your vested retirement balance, up to $50,000. The interest rate may be one or two percentage points higher than the Prime Rate, which recently was around 4%. You usually have up to five years to pay back money used for consolidating credit card debt. Miss that deadline and you may owe income tax and potentially a 10% fee on the remaining balance.

Once you have your credit reports, read through them completely. If you have a long credit history, your credit reports might be several pages long. Try not to get overwhelmed by all the information you're reading. It's a lot to digest, especially if you're checking your credit report for the first time. Take your time and review your credit report over several days if you need to.
We’ll explain each of the four pillars of credit repair in detail below. Just remember, each step on its own will not be enough to completely fix your credit. Credit repair, after all, is like peeling an onion: You have to peel away a few layers before you get to the good stuff. But we’ll try our best to make sure your credit recovery doesn’t bring you to tears.
The key to debt consolidation is to avoid taking on new debt. If you borrow money, pay off your credit cards and then charge them back up again, you’re in worse shape than ever. If there is any chance that you might do this, or if you find yourself doing it after you obtain the consolidation loan, stop using the cards and just close the accounts. Your credit score will suffer, but your finances will thrive. Your score will come back up over time, and by then you’ll have learned valuable lessons about racking up too much debt.
While the Savings Secured Visa Platinum Card from State Department Federal CU has a slightly higher security deposit at $250, it does have one of the lowest APRs of a secured card at 13.99% Variable. This may come in handy if you find yourself carrying a balance month to month — but we strongly encourage you to pay each bill on time and in full to avoid interest charges. This card is available to everyone regardless of residence by joining the American Consumer Council for free during the application process.
If you have one of those letters we mentioned earlier that details your credit problems, you have some idea of what’s holding you back. Even though it may seem complex, as we mentioned, your credit score is based on five core factors: payment history, credit utilization, the age of credit accounts, mix of credit accounts and history of applying for credit. They’re not equally weighted, and this information will most likely vary between credit bureaus.
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