Putting Your Financial Life Back on Track

Now that the COVID-19 pandemic is beginning to show signs of slowing, things are beginning to open back up, and many of us are going back to work, getting our lives back on track, and starting to plan for the future.  If you’re one of the ones who was furloughed, laid off, or even terminated, your credit may have suffered… So, where do you start at putting your financial life back on track once you have a regular paycheck coming in again?

Obviously, if your credit has taken a hit, the very first thing that you need to do is study your complete credit report.  Credit Bureaus are required by law to supply one credit report per year free of charge. So, by contacting each one separately, you can get your free copy.  This will give you a file number that you can use to dispute anything on your report that you believe is incorrect.  You can also sign up for any of the free services online that help you to monitor your credit score.  (Study each one carefully, figure out which credit bureau they are reporting for, then sign up for three different companies so you can access all three credit bureaus for free!)

Once you have your credit information in hand, study your report very carefully, then consider contacting your creditors directly.  You may find they will be willing to negotiate a settlement of your debt for less than is owed. Don’t wait until your accounts have been turned over for collection by a debt collector. At that point, your creditors have given up.

Charge offs, liens and past due balances on your record within the past 24 months will do the most damage your credit score, so those are the ones you want to concentrate on first. If you have both charged off and collection accounts, but limited funds available, first pay past due balances.  Then, pay the collection agencies that will agree to remove all reference of the delinquency from your recordIf an agency says all they can do is report the debt delinquent, then thank them for their time, but explain you are concentrating your efforts to work with those creditors who will work with you.

If you have older debts on your credit report, the statute of limitations in your state may prevent debt collectors from being able to sue you.  After that, your unpaid debts are considered “time-barred.”  According to the law, a debt collector cannot sue you for not paying a debt that’s time-barred.  Of course, the statute of limitations varies from state to state and for different kinds of debts, so check your state’s laws first.  Also, also under certain circumstances, the debt “clock” can be reset.  This starts the statute of limitations anew, so be very careful.  If you admit to the debt, or even if you pay any amount on the old debt, the clock resets and a new statute of limitations period begins.  That means the collector may be able to sue you to collect the full amount of the debt, which may include additional interest and fees.

A critical factor in negotiating a settlement is a letter from the creditor that explicitly states their agreement to delete the account upon receipt of your payment. This letter will remove the item from your credit report completely, as if it never existed.  Normally, your credit score will quickly rise by 20-30 points once this is removed from your file. Ask that the letter be sent directly to you by fax or email, then personally send it to the Credit Bureaus to ensure that it is processed to your file quickly and accurately.

If your credit cards are behind, most will work with you to pay down your balance, set up a payment plan, maybe lowering the interest rate, or even discounting the amount owed if you agree to pay it all at once.  Remember, you will need the cards to help rebuild your new payment record, so don’t close out the account once you have paid off the old balance.

Whatever you do, keep at it. It takes effort, time, and patience to repair your credit but the results are worth it.  Do not take no for answer, if your initial contact tries to put you off insist on talking with someone who can make the decisions you require.

Everyone Needs a Fresh Start Sometimes

Although you might think this website is directed toward those individuals who have less than perfect credit, that’s not necessarily the case. Even people with perfect credit can sometimes get in over their heads. You know what I mean… you overspend at Christmas, you have a financial emergency, lose your job, or simply get carried away because your excellent credit offers you so many credit options!

Before you know it, your monthly minimum payments are eating away at your cash, and money gets really tight. Even though you’re still making those minimum payments, the interest is killing you, and its nearly impossible to get anything paid off. Yep, you could really use a fresh start, couldn’t you?

If your credit card bills are out of control, there are several things that you can do that won’t ruin your excellent credit.

Probably the easiest option is to transfer the balance (or balances) to a new lower or even a no interest credit card with a 15 to 18 month promotional period. This will not only lower your monthly payment, but it will also stop the interest from accumulating on the balances that you transfer. Just be careful and pay the new card balance down before the promotional period expires or the deferred interest may be added to the balance.

Equally as importantly, don’t charge anything on the cards that now have a zero balance or you’ll soon find yourself with even less cash in your monthly budget!

The other option that you might want to consider is a personal loan.  These loan providers specialize in personal loans to individuals who are determined to pay off credit cards, student loans, and other debts.  The interest rate is typically much lower than that on your credit cards, so you’ll not only cut your monthly payments, but you could save hundreds or even thousands in interest.

Whichever way you choose to go, you’ll save money and pay those bills off sooner.  Get your fresh start today!



Pay Off Your Credit Cards!

Drowning in credit card debt?

If you’re like the majority of Americans these days, you’re drowning in credit card debt simply because, with the current state of the economy, you don’t have the money to anything more than the minimum payment due each month, and then, as soon as you’ve paid a credit card balance down even a little, you end up having to use the credit card and you’re maxed out yet again!  It’s a truly vicious circle… and unless you do something, it’ll never change.

Relax… There is a better way to handle credit card debt!

With a personal loan, you pay off all those high interest credit cards, and you make only one payment each month for the term of your loan. Since the interest rate is usually drastically lower, you’ll pay less each month AND you’ll be able to pay the loan off sooner than you would have been able to pay off the credit cards.

Unlike debt consolidation companies, personal loans will typically improve your credit score because you’re actually paying off your credit cards, not negotiating for reduced payments, lower interest rates, and so forth.

But, what if your credit is not perfect?

Even if you’ve had a financial setback, you may still qualify for a personal loan!  If you’re serious about getting out of debt, and you meet the loan company’s criteria, then a personal loan is an option that is definitely worth seriously considering:

Pay Off Your Credit Cards AND Raise Your Credit Score?

Want to pay off your credit cards and see your credit score jump about 40 points?

Believe it or not, there’s a fast, easy way to do it!  With a personal loan, you can get a fresh start on all that old debt, save money on those huge interest rates you’ve been paying, and most people really do see their credit score jump an average of 40 points.  And all you have to do is fill out a simple, fifteen minute application that won’t even affect your credit score.  Then, once you’re approved, the money is transferred directly into your bank account, and you’re ready to pay off those credit cards and get a fresh start on your credit card debt!

Personally, I can’t think of a better way to get a fresh start on old debt, improve your credit score drastically, and get on the right track financially than a personal loan.