Monday, December 28, 2020

On December 28, 2020 by Decadeofhits   No comments

Thoroughly analyze each debt you have. Look for charged off accounts, accounts turned over to collection agencies, or accounts that are getting charged off but remain open. Most of these negative accounts are turned over to collection agencies or charged off. Know which collection agencies are most aggressive and back them in your quest for financial stability. Most collectors will stop collections immediately upon receiving payment, but some can go as far as buying debt at a fraction of the price.

Take action when collection agencies begin contacting you. Answer their letters and calls promptly. Keep a record of each conversation, don't give them any rights to collect in your state. Most conversation will lead to follow-up with a demand letter, as they are called upon again and again. If you have consistent communication from a collection agency and the creditor does not stop the collection attempts, contact a consumer attorney to take action against the creditor. It is merely a call to action rather. Many lenders and collection agencies purposely violate the FDCPA because intervention from a consumer attorney can result in an unfavorable judgment that stays on the report for up to ten years.

Begin the process of credit repair by reviewing your credit reports from each of the three major credit bureaus, Equifax, Experian and TransUnion. You'll find material from each credit bureau on topics such as how to rebuild good credit, agreements between consumer and creditor, privacy, and rights. Continue to make payments promptly and consistently. If you are paying off collection agencies for example, once you have paid them, close the account. That will show collection agencies that you are not willing to default on a loan. Offer a settlement amount to pay off one bill instead of paying several others. You may close accounts by paying off a large balance immediately. Also, learn to have a large reserve in the bank with something such as a CD. Use this money instead of charging everything. Pay down balances and become debt free. Show creditors and collections that you are serious and responsible about maintaining your credit.

Effective credit repair is like exercising; you need to take care of the plan in order to succeed. The sooner your get out of the negative financial situation, the sooner you can regain control of your life.


Post a Comment