October 01, 2007
Debt Collection - Facts vs Force
The title 'debt collector' is self explanatory and clearly states what such a person does. If you owe money to a lender and there has been a delay in payments over the past few months the lender may choose to either use their in-house service or employ a specialized debt collection service provider.
If it is a third party i.e. a specialized collection agency, they usually purchase your debts for less than you owe from your lender and then the debt becomes theirs. Therefore, they then have vested interests in settling the same.
Debt collectors while doing their job may tilt towards being forceful and intimidating. As a defaulting borrower, you are already on a back foot. However, you can still stand firm and not give in to their demands. Here is how:
The job of a debt collector is to advise you that you owe some monies. He cannot threaten, abuse or intimidate you by threats of harm or police action.
A debt collector may establish contact with the borrower in person, via sealed mail, telephone, fax or a telegram. He cannot use a postcard as it can be read by anyone. He cannot also call before 8 a.m. and after 9 p.m., unless you agree on a time.
The first call from the debt collection agency has to be followed up by a written statement clearly stating your creditor's name, the actual amount owed and what action he can take if you do not acknowledge the money owed. This written letter must be accurate and have no false information.
Also note, the debt collector cannot contact your relatives, friends, neighbor etc unless to obtain your contact information. In such circumstances he cannot inform them that you are in debt. You are entitled to your privacy even if you are in default.
Remember you cannot and should not force the debt collectors to coerce you into making payments as per their demands. A number of collection agencies work on the premise that the best way to get the payment is to make sure that it becomes number one on your priority list. While you know you owe the monies, you have to ensure that you clearly prioritize your finances. If there is a greater and pressing need for your money, like for medicines or food then you must allocate the funds accordingly.
You can choose to directly negotiate with the debt collector or appoint an attorney instead. If you deal directly, do not feel compelled to offer private information that can be misused to force payments from you. Example, details of where you work, your personal account information and the like.
Always seek written communication from the debt collector instead of phone conversations. This will put pressure on the collector to be polite and accurate in his dealings with you. All agreed terms and conditions will also be clearly outlined. The original amount owed, along with any interests and fees should also be clearly mentioned. It is also a good idea to tape your phone conversations after having explicitly informed the collector when he calls that the same is being recorded.
If your debt collector continues with his forceful methods you have a right to redress. You can complain to the concerned authorities within your jurisdiction and obtain relief.
The best way to counter force is through knowing the facts and standing firm on them.
Posted by creditreportsolution at 10:04 AM | Comments (0)
August 30, 2006
Why You Need a Copy of Your Credit Report!
Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report. But why would you want to read your credit report, and how do you find it?
In the US there are 3 agencies which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life. You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life.
And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.
You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.
Something as simple as missing a few bills because you were on vacation can quite seriously affect such things as your ability to obtain credit in the future. So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of. For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.
So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.
To get your credit report ring 1-877-322-8228 (toll free) and proceed as directed.
So remember, you are entitled to a copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.
Posted by creditreportsolution at 07:47 AM | Comments (0)
May 20, 2006
Avoiding Declines by Repairing Credit
"Sorry you are declined"
Have you ever heard this before when you went to apply for a loan or a credit card?
If you have, this means that your credit files has some negative reports and it is time to clean up your act. Credit files are a report that contains your credit score and history.
If you are declined then it is time to get started to rebuild your life. Credit bureaus obtain their information about you from all creditors that has done business with you. If you missed payments, ignored payments, or else simply overlooked payments the reports are sent to TransUnion, Equifax and Experian for review. Once the bureau’s has found negligence against you, your credit scores are immediately dropped.
The lower your score means that you have fewer chances in life to get a loan, credit card, apartment, insurance, and so on. The higher your score means that you have opportunities to buy a new car, get a home mortgage loan or a major credit card from any source practically. The outlook for bad credit ratings then is something we want to reconstruct rather than ignore since it means our respect is in jeopardy.
Many people around the world are filing bankruptcy, consulting with debt management programs, counselors, and other resources to find a solution to get out of debt. The fact is these people are adding problems to their lives. When you apply for bankruptcy this stays on your credit file for 10 years and in some instances fifteen years.
If you consult with debt management agencies or the wrong debt management counselors, you are only adding expenses rather than deducting bills. The law provides us a degree of protection, but the total outlook is that when we have bad credit we are walking on pins and needles for the rest of our lives unless we clean up our act. Bad credit can lead to judgments against us, lawsuits, foreclosures, repossessions and so on.
When we have bad credit we are subject to become homeless, broke, hungry and then some. The key then to success is to find a solution that works best for us. If you are working or even on Welfare or Disability it is possible to reestablish your credit. The first thing you have to do is make sure your living arrangements, vehicle, living necessities and so on are in accordance with your income. If you are spending more than you are making the chances of you getting out of debt will decrease.
On the other hand, if you monitor your income and spend within your means you may find a solution to get out of debt. You might also want to look into part-time jobs if you are on Welfare of on Disability. The sources allow you to make so much money each month. You will still receive your checks with a little less income, but for the most part, it is a step in the right direction since you will be getting back on your own two feet.
In addition, if you are working and making less than what you are worth you might want to find a higher paying job that could benefit your future. There are many options available to building your credit. If you have a vehicle that is costing you more than you make, you might want to consider selling the vehicle and purchasing a used car. Used cars when maintenance is kept often last and are less expensive than newer vehicles.
If you are paying more than you make on Mortgage you might want to consider selling your home, paying off your debts and work toward restoring your life. To avoid declines it is important that you find a solution to repair your credit. Relying on others has proven in most cases to be nothing more than a waste of time. Therefore, the solution is finding what works for you.
Posted by creditreportsolution at 09:35 AM | Comments (0)
May 15, 2006
Avoiding Bad Credit and Repair
Staying in contact with your payments each month can help you avoid bad credit. If you research the marketplace before coming to a purchasing decision, you are well on your way to avoiding bad credit and repair credit hassles.
You want to consider all applications, including credit cards, student loans, mortgages, and car loans carefully to avoid being overcharged. Making the wise decision ahead of the game is the ultimate solution to maintaining good credit.
This is because these people did not take the time to check the marketplace first and searching the options available to them. As you can see, the millions reported are in debt and searching for a way to repair their credit. The solution then to avoiding bad credit and repair is to research, invest wisely, make good decisions, and budget.
Being informed and educated is two of the best tools offered to us. There are mortgage loans that offer overpayments and underpayments and these loans include vacation packages and lump sum payments to the borrowers. There are also other loans available that offer low mortgage monthly installments and low interest rates with insurance policies attached that will pay your mortgage if you are sick, unemployed, in an accident and so on.
On the other hand, there are mortgage loans that have high interest rates, high mortgages, and balloon payments attached. When balloon payments are attached to home mortgages it is almost guaranteed in a few years you will be searching for a solution to repair your credit.
There are very few home lenders willing to tell you the truth about the variety of home loans available. Most of the lenders are making money and you are a source of income. It is important to scope the terms & agreements carefully as well as reading all fine prints on any loan contract before you sign.
If you want to avoid bad credit and repair, you want to stay on the right path. Loans are agreements that are made between two parties and attached are interest rates and other fees. If you are applying for a home loan and want to avoid bad credit, it makes sense to learn what the fees include and how much those fees are. Anytime you take out a mortgage loan there are upfront fees attached. In some cases, you can get a home for little or no cost. Searching the marketplace can save you time and money.
Some home loans offer an ‘acceleration clause’, which covers you if you miss mortgage payments. The lender will apply the clause by allowing you leniency providing you make payments the following month on time. This type of loan is great for avoiding bad credit, foreclosures, and repossessions. The marketplace is swarming with realtors and other sources that will help you get a mortgage loan affordable to you with benefits included.
Car Loans
If you are applying for a car loan, it is also important to research the marketplace carefully before agreeing to any terms & conditions. Make sure that your find the best deals affordable to you.
College Loans
College I learned a golden rule that applies to everyone. This rule is that most car dealers up the fees on cars 15%. This means if you negotiate with the dealer you can get a reduction on the vehicle up to 15%.
Credit Cards
Another word of advice is when applying for credit cards you want to sway away from cards that have fees attached and high interest rates. Avoid credit card offers that have upfront fees offer a high line of credit.
Student Loans
You also need to consider student loans. You may be qualified for a student grant from the government. This is the first place you want to start before committing your self to a loan agreement.
Posted by creditreportsolution at 08:09 AM | Comments (0)
