Credit Repair: How To Deal With Your Creditors
|
If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your creditors reasonably happy.
First, prioritize your debts or rank them in terms of the ones that can give you the most trouble the quickest. If you're three months behind on your utility bill and the company is threatening to cut off your power, you should deal with this debt first.
Second, be sure to keep an accurate log of all phone conversations with creditors and copies of all correspondence.
This way, you will have a good record of what's going on, to whom you spoke last, the date of that conversation and its result. It's not uncommon for large corporations to have different people or even different departments contacting you about late or missed payments. If you keep accurate records, you will always be able to defend yourself against the claim that you have been unresponsive or uncooperative.
It's kind of human nature to want to run away and hide from creditors. But it's better to be aggressive. If you know you are not going to be able to meet a mortgage or credit card payment, call the company before the payment is due. Tell the company's representative why you are having money troubles. Be sure to give a real reason for your problems such as a divorce or loss of a job, and not just some feeble excuse.
If you can give your creditors a real reason for being in financial trouble, you may find that they are sympathetic and willing to work with you.
Your next step is to arrange a payment plan. When you contact your creditors' representatives, explain that you know you are behind in your payments but that you want t make a payment arrangement. Let them know what you can afford to pay this month and the next. Make certain they know you intend to make full payment eventually.
You might also see if one or more of your creditors would be willing to let you skip a month's payment. Be sure to get all payment plans in writing. If the company's representative does not volunteer to mail you the plan in writing, send a letter requesting that he or she do so.Calculate just how much you can afford to pay a creditor before contacting the company. Then, do not agree to pay any more than this, no matter what the company demands. It may take a number of phone calls before the company agrees to a reduced payment. If the company keeps saying "no" to your offer, keep calling until you get a different answer. Or ask to speak to the representative's supervisor as he or she may have more authority to work out a plan with you.
Finally, always try to negotiate. Your landlord may be willing to let you miss a payment now if you make it up at the end of the lease.
If you have a mortgage, ask your lender if they would take a 60 percent payment now with the promise to make this up over the next few months. If you will be paying late, explain the circumstances and ask that at least they waive the late fees.
If you are having trouble paying for your utilities, see if you can switch to a budget plan or set up a partial payment plan. Most utilities will not cut off your service so long as you are making some kind of payment.
You could sell your car and purchase a cheaper one if a car payment is a problem. If you're going to make a late payment, be sure to let the lender know in advance. Otherwise, you might find your car has been repossessed. You might ask for an extension of the loan. For example, if you have 36 months left to pay, you might ask to extend this to 42 months in return for lower monthly payments. And if you are leasing a car, see if you can terminate the lease early. All the leasing company can say is "no."
Being in serious debt is never any fun. But if you tell your creditors what you will do and then do what you say, things will get better.
For FREE help with debt and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com
|
|
|
Credit Help For Real Estate Financing: Credit Scores
When you buy real estate, lenders run all of the "big three" credit bureau reports. Each credit reporting agency lists your credit history as supplied to them by the indivi...(related: Credit)
Good Credit Is King, When Qualifying For Mortgage Programs
If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still ...(related: Credit)
A Debt Mentality
While working through my own debt situation, and helping others resolve their life issues regarding debt and credit, it never ceases to amaze me how similar the life stories are and how profound is the effect of debt on the way a person thinks about life...(related: Credit)
Credit Score: The Brightest Feather In Your Financial Cap
Credit scores are the most important aspect that determines your financial future. Carrying a good credit score is an asset and can pave your future towards greener pastures. On the other hand a negative marking on your credit report can be ruinous for your future dreams. However, "There Isn't Much anyone can do for those who will not Do Something for themselves." The same...(related: Credit)
Borrowing On A Credit Card
One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. However there are two broad areas that you should look at:Annual Interest Rat...(related: Credit)
New Law Provides Free Annual Credit Report
As of Thursday, December 1, 2004, one-third of Americans will be able to access their credit reports from all three main agencies for free. Passed in late 2003, the Fair & Accurate Credit Transactions Act creates a central source consumers can use to obtain a free annual credit report.Equifax, Experi...(related: Credit)
Harassment Of People In Debt By Creditors
HarassmentHarassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970. It is often difficult to know what to do when you f...(related: Credit)
A Summary Of The Fair Credit Reporting Act
This summary of the Fair Credit Reporting Act will explain what you can legally do if you wan...(related: Credit)
Clean Credit Report: Easily Raise Your Credit Score 100 Points
Clean Credit Reports, your credit report contains information about where you work, live and how you pay your bills (On time or not). It also may show whether you've been sued, arrested or have filed for bankruptcy with in the last 10 years. Companies called consumer reporting agencies (cra) or credit bureaus compile and sell your credit report to businesses all over the world.Clean Credit Reports, many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in...(related: Credit)
Credit Traps Snag Consumers
Nearly 20 years ago I worked for a small consumer advocacy organization in Washington, DC. Each week we received sacks full of mail from consumers across the country requesting our list of credit cards with low interest rates and no annual fees. If you wanted a low interest rate on a credit card back then, you often had to apply to a bank in Arkansas where interest rates were capped by state law.Those were the good old days.Now, interest rates range from zero percent to a high 39 percent. It's tougher to find (and keep) a good credit card than ever before. That's because there are many new traps that can snag unsuspecting consumers.At the top of the list is the "universal default clause" which allows issuers to monitor you credit report and raise your rate if you are late on any bill that app...(related: Credit)
Credit Report Disaster Through Mistaken Identity
I've got some very important info I want you to think very seriously about. I'm sure by now you've heard of Identity Theft,...heck you may have even been affected by it. I know many of my friends have.But how about what may potentially be even a more dange...(related: Credit)
Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth
You got creditors calling you everyday. You could lose the car or house. Your teetering on the edge financial ruin - then you see an ad that may safe your butt! Typical headlines say something ...(related: Credit)
Credit Repair: How To Deal With Your Creditors
If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your creditors reasonably happy.First, prioritize your debts or rank them in terms of the...(related: Credit)
site-map - Copyright © 2007 | Contact Webmaster | All Rights Reserved | Free Articles and Information | Credit