Debt Collectors are calling HELP!!!

If you have not paid your bills in a timely manner it may very well be that the next phone call you recieve will be from a debt collector.There are several types of debt collectors.Let's take a look at some of the debt collectors that may be calling you.The first kind would most likely be an in-house debt collector.If it is at all possible this is who you would prefer to deal with.

The in-house collector works for the creditor, and therefore has a more power to negotiate a settlement that could be in your best interest.Also they can report your account to credit reporting agencies accurately.Which, if you negotiate correctly could be a great service to your credit report.As with any business dealing be sure to get all agreements in writing with a original signature.

If you have ignored in-house debt collectors, ducked the phone calls and letters.They will charge-off your account, that is write it off as a loss.They will usually then hire a collection agency to do the same thing, the in-house collector does.However with some glaring differences. Collectors that work for these companies are often paid by commission...and not only will some of them tell you anything to get you to send them money. Some of them will even break the law to collect from you.

Finally there is the last step in the food chain so to speak.The junk debt buyer. When the prior two steps have been exhausted sometimes a creditor will sell your account to a junk debt buyer.You are now playing a whole new ball game.This is the most aggressive kind of collection there is, and I'll explain why.Let's say you have a friend or family member who owes you $100.00.You get sick of asking for the money back or it's just not worth your time.Now lets say you tell one of your other friends about this and he or she says. I'll collect it. Just tell him he owes it to me, and I'll even give you $7.00 for it.You didn't get your $100.00 but you made $7.00 back. Now lets say your friend collects $75.00.Thats a little more than 10 times his money back.Now imagine he gave you .03 for it and got $75.00 back. Junk debt buyers usually pay pennies per $100.00 of debt.Next post I will get more into detail on solutions to your problems with bill collectors and how to solve them.

Take a look at your expenses...Solutions

Whether you received a rate reduction from your credit card company or not, it's time to look at your spending. I find most extra expenses are simply necessities that are being put on credit, either out of habit or because cash is tight.In either case these are the first things that should be looked at.Most people will say look at your frivolous spending, or spending on big ticket items. I leave those out for a reason. If you're trying to clean up your credit or keep it in good standing these kind of expenses shouldn't be made under any circumstances.
Now if the problem is lack of money i.e. your job doesn't pay enough. It's time to take action. A part time job may be in order. If being out of the house is a factor , there are ways to work at home. Usually they take a bit more work but you can be successful if you put in the effort.Also they say most people have approximately $3,000.00 in items they can sell on E-Bay or Craigslist. Take a look around your home, figure out the least amount of money you're willing to take then close your eyes and let them go. Next post. "Help the bill collectors are calling and harassing me!!!"

You're ready to take action on your debt!!

So if you have followed my advice so far you are looking at your total debt due.Also you now see your interest rates on your account(s).If you are like me not many days go by where you don't receive at least two or three offers for balance transfer rates that look great. WAIT!!! Don't go running for that great looking offer.The first thing you should do is call your present creditors and ask for an interest rate reduction. Now to do this you will want to have been paying your bills on time. When you do get someone on the phone explain to them that you have been a good customer, and are now being offered better rates from their competition.Feel free to name the company making the offer as well as the rate they are offering.Not the balance transfer rate but the interest rate. Most times they will met the rate.

If you run into opposition don't give up yet, there are several options still remaining. When I run into a brick wall with customer service,I like to play a game called "Get me your boss". Ask nicely if you can speak to the persons supervisor. Then very nicely repeat the same steps.If you are turned down again, ask for a reason. This will not make them give you a better rate, but at least you will know whats causing the problem. If you did not get the rate reduction, don't lose hope you still have those balance transfer offers. I will give you the pros and cons of those in my next post.

How do I fix bad credit??

So, how do I fix my bad credit? It's a question people ask me all the time. The first step is to order your credit report and score,BY MAIL!! this way you can assess the damage. Don't worry about looking at the information on your report it won't hurt. It may be upsetting, but at least you will have a clear picture of where you stand.

While you're waiting for the credit report, it's time to look at the debt you have presently incurred. Take a sheet of paper and write down the amount of every debt you presently have. This list includes car payments,credit cards,loans,lines of credit etc. Again don't worry about the amount, but do know what it is. It's harder to keep spending when you know what you already owe.

If you are like most people the number is probably higher than what you expected to see.Today we're going to start with the easy one. Believe it or not the credit cards are the easiest. Get your last month's bill's from all the credit cards you have.Using the same piece of paper write the interest rate next to the corresponding amount.The interest rate should be listed on your bill. Now take a break let the numbers sink in and I'll be back tommorow to continue this thread.

Credit Score and Credit Reports The Right Way To Get Them!

How would you like to guess the first mistake most people make when wanting to get their credit score and credit report....You ready for the answer??
It may surprise you...
They order it online.
Now you may be saying to yourself, but that's the fastest way. Yes it is, but it's also in most cases the wrong way especially if you have bad credit. When you receive a copy of your credit report and score online you are forced to agree to the terms of the Credit Reporting Agency. Among these "terms' you will find something similar to the following "if any legal dispute is to arrise it will be heard by an arbitrator". Effectively, in the case of a dispute that is not handled to your satisfation, you may well not see your day in court. What's that?? You didn't know you could sue credit reporting agencies??
You may very well be able to depending on the circumstances.Although keep in mind the agencies do have a policy for disputing items and are often quite effective in handling these disputes. Do not go off half cocked. Threatenig to sue with no intention of doing so is a dangerous game.
Keep checking this blog for daily updates.Please always keep in mind I am not an attorney and do not offer legal advice.