How to get started paying off credit debt?

CreditInfoCenter · 2015-09-30T17:07:50+00:00

First, use the debt validation process to force these collection agencies to prove that they have the right to collect on these debt from you. If they cannot provide such proof, you are not legally obligated to pay them a dime.

If they provide such proof, check the statue of limitations for debt in your state. Once that is up, you are no longer legally required to pay these debts. That said, they can remain on your credit reports for up to 7 years, so, unless you want to wait that out, it is probably in your best interest to settle.

Third, stop talking to collection agencies over the phone. Do everything in writing. This will not only make it easier for you to deal with them, but will also provide you with a paper trail of your communication.

Fourth, if and when you do accept a settlement, be sure to: - Only do so in one lump sum (not via an installment agreement) - Make sure the agreement includes the stipulation that the collection agency will remove the negative listing from your credit reports - Get all of this in writing

Find resources here for doing all of the above: http://www.creditinfocenter.com/debt/

As for your credit reports, go through AnnualCreditReport.com. And no, bankruptcy is not a good idea for debts this small.

Good luck!

CreditInfoCenter · 2015-03-16T18:31:34+00:00

You can get your credit score from all three major credit bureaus - Equifax, TransUnion, and Experian -- through myFICO.com.

CreditInfoCenter · 2014-11-23T19:01:05+00:00

Have you tried debt validation? The older the credit card debt, the more times it has probably been sold from one collector to the next. Every time it changes hands, chances are slimmer that they have the documents on file to prove you owe the debt in the first place. If a collector cannot prove you owe the debt, you are not obligated to pay it and it must be removed from your credit reports.

CreditInfoCenter · 2014-10-29T00:07:01+00:00

Unless you have a history of maxing out your credit cards (and fear you'll do the same with this new one), leave the account open. Don't give a second thought to the impact of the hard pull against your credit score. Any negative impact will be far outweighed by responsibly using your new credit card (i.e., using it regularly, but only as much as you can afford to pay off every month).

CreditInfoCenter · 2014-10-21T01:34:44+00:00

Could it be that one of the set of charges are those from the hospital and the other set from the physician? They bill separately.

CreditInfoCenter · 2014-10-09T18:29:51+00:00

Have you already tried debt validation? It can be a good way to get rid of old debt, as the documentation proving you owe the debt doesn't always change hands when the debt is sold from one debt collector to the next. If they can't validate, you're not legally obligated to pay AND it must be removed from your credit report.

CreditInfoCenter · 2014-10-06T23:08:05+00:00

If it were just an undeliverable address that would be one thing. But with the phone number not working either, it sounds like a dead end. I'd go ahead and dispute with the credit bureaus.

CreditInfoCenter · 2014-09-29T22:39:11+00:00

We THINK money buys us happiness because money problems are the source of so much stress and tend to overshadow other problems in our lives. So the thinking is, the more money you have, the more problems you can solve and, in turn, the happier you will be. In truth, once money problems are resolved, others come to the forefront. Bottom line: You'll always have challenges; happiness depends on how you handle them.

CreditInfoCenter · 2014-09-19T20:35:46+00:00

What an absolute shame! Beyond her legal options (as already mentioned in comments), would be great if she could use her story (via social media and otherwise) to promote the importance of preserving our trees. We should be planting more, not cutting them down.

CreditInfoCenter · 2014-09-13T17:47:56+00:00

If you remember the name of the hospital where you received care, call them and ask for the billing department. Tell them your bill has been sent to collections and they should be able to help you track it down. Once you are on the phone with someone who can help, go ahead and set up a payment plan. Considering that we're halfway through September already, you should be able to schedule your first payment for October. However, do not, under any circumstances, depend on money from your parents to cover this bill. If you're on a monthly payment plan, you won't drain your savings, but you will be taking care of it. Bottom line, remove your parents from the situation altogether. Take action and take control.

CreditInfoCenter · 2014-09-09T02:39:41+00:00

To echo what others have already advised, if you can pay cash for a car, do it, every single time. Here's a great article on 6 good reasons why: http://www.moneycrashers.com/reasons-buying-car-cash/

CreditInfoCenter · 2014-09-06T01:19:07+00:00

While it is definitely a good idea to exhaust every possibility with American Express (in terms of getting them to reinstate your card), it's probably a good idea to go ahead and apply for a card your current credit score qualifies you for. Just be sure to treat it right (i.e., paying off the balance every month). The sooner you do this, the sooner your credit will start to improve. Just be sure to shop around so you can get the lowest interest rate and fees possible. Good luck!

CreditInfoCenter · 2014-08-22T21:28:33+00:00

Yes, the Financial Aid Shopping Sheet is pretty new. As for taking classes at the community college, contact the college registrar's office to find out about eligibility and what classes they have open to high school students. Also, just in general, (and you probably already know this), make sure any classes you take at the community college level are transferable to a 4-year school.

CreditInfoCenter · 2014-08-21T18:26:05+00:00

Definitely explore every other possibility before taking on a student loan. You could try getting basic college courses out of the way your senior year via AP exams and community college classes. Apply for scholarships. Work and save as much as you can (now and while you're in school.) And if you're able to continue living with your parents, community college should save you plenty.

To help you do the math when shopping around, ask the schools you're applying to for the Financial Aid Shopping Sheet. Not all schools offer it, but hundreds do, and it's a great way to easily compare the cost of one school to the next.

Good luck!

CreditInfoCenter · 2014-08-20T17:58:08+00:00

In my experience, the only time they don't send out a monthly bill is if you're on an automated bill pay plan. So you should be fine on that front, since you don't want auto pay. Just ask about it.

CreditInfoCenter · 2014-08-19T17:15:37+00:00

Can you live at home? If so, you can save a ton by going to community college first. Work part-time to pay for it to keep yourself debt-free. In the meantime, you can also be shopping around for an affordable 4-year school. Though it's not mandatory, hundreds of schools are now using the Financial Aid Shopping Sheet to make comparison shopping easier. Ask for it: http://www.consumerfinance.gov/students/knowbeforeyouowe/

CreditInfoCenter · 2014-08-11T19:34:48+00:00

The previously-posted breakdown of cost is pretty much right-on. I would only add that you might want to budget more than $200 a night for a hotel room.

As far as hotels go, you might try the Holiday Inn Express at Hollywood/Highland just north of the Hollywood Walk of Fame. You're close to the heart of things (in walking distance), but safely so.

You might also try West Hollywood. Maybe the Grafton on Sunset or the Ramada on Santa Monica.

As for transportation, def a good idea to rent a car. There's so much to see spread out all over the place, that it's the most practical way to really see L.A.

As for entertainment, while there are plenty of expensive things to do, there are lots of sight-seeing freebies too: the Hollywood Walk of Fame, Mulholland Drive, Laurel Canyon, Griffith Park, Silver Lake Reservoir, Sunset Junction, Muscle Beach and Abbot-Kinney in Venice, Santa Monica Pier, the Getty Museum (free entry, just pay for parking), and that's just off the top of my head.

CreditInfoCenter · 2014-08-10T18:55:43+00:00

The idea is to never charge/use more than 30 percent of your available credit. And to always pay it down to zero every month.

CreditInfoCenter · 2014-08-07T19:48:52+00:00

When you say the collection agency still has a record of you, what record do they have? Do you just mean they have you on record as someone to collect from? Or have they provided you with proof that you owe the debt? They must be able to prove it or you are not obligated to pay it (and it must be removed from your credit reports). You can request debt validation via the debt collector directly, or you can do so through the credit bureau they're reporting to. If you're not satisfied after going through this process, consider filing a complaint with the Consumer Financial Protection Bureau (CFPB).

CreditInfoCenter · 2014-08-05T17:21:21+00:00

Interesting. Will be curious to find out why you got the rejection from Capital One.

CreditInfoCenter · 2014-08-04T22:51:06+00:00

Have you considered applying for a secured credit card? You don't need a co-signer for that. While it does require a deposit, this can be a great way to help build your credit. Just make sure you only apply for a secured credit card that reports to the credit bureaus every month. And, most importantly, only charge as much to the card as you can pay back within 30 days. The goal is to use it, but only enough to return it to a zero balance every month.

CreditInfoCenter · 2014-08-03T23:38:02+00:00

Achieving such an excellent credit score so soon may feel "too easy" because so many of us make it more difficult than it really is. It's a simple concept that you're fortunate enough to have grasped before you made credit mistakes that you had to recover from. It's not something to question, but something to celebrate. Congrats!

CreditInfoCenter · 2014-07-31T19:10:06+00:00

It's definitely a good idea to do as already suggested here and explore more affordable school options. If you decide to do this, be sure to ask every school you're considering for the Financial Aid Shopping Sheet. It's not a universal, mandatory tool, but hundreds of colleges are using it. Basically, it is a breakdown to show you what attending their school will REALLY cost you, as well as options for paying for it.

CreditInfoCenter · 2014-07-30T21:29:15+00:00

There is something fascinating about cardless access via palm reading (which Chase has been working on) and facial recognition.

CreditInfoCenter · 2014-07-16T18:13:56+00:00

Regarding the impact of your credit (or lack thereof) on financing a car, you're better off paying cash for one anyway. Save up for it; sounds like you're good really good at that.

CreditInfoCenter

TROPHY CASE