5 Facts To Consider When Choosing a Credit Counselor
Choosing the right credit counseling agency can make the difference in reducing your debt or digging yourself further into debt.
Debt Solutions
Debt settlement can hurt credit scores
Debt settlement can hurt credit scores because having late payments are essential to settlement, creditors are motivated to settle when you have multiple lates
Credit bureaus will remove some medical debt from credit reports
Medical debt can seriously damage credit but by July 1, a significant number of consumers will have medical collection debt removed.
Does paying off collections improve credit score
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment. Paying a collection account does improve credit scores but only under FICO 9 scoring system.
How to Request Debt Validation from debt collectors
Debt validation is a powerful tool consumers have to use against unfair debt collection. It forces a debt collector to prove you owe the debt.
Debt Validation Sample Letter to a Debt Collector
A simple debt validtion letter example that can be used to request debt validation from a collection agency.
How to successfully and calmly deal with Debt Collectors
Keep your cool with these 17 Tips to Deal with Debt Collectors: Stay calm, stay off the phone, know your rights and request proof of debt.
Remove accounts that are past the credit reporting time period
Original creditor is no longer reporting an account to the credit bureaus but debt collector is reporting new dates on the account. This action is re-aging an account which is illegal.
Disputing an old account can trigger a new debt collector
Disputing an old collection account can trigger the collection agency to renew their collection efforts or sell the debt to a new debt collector.
Risks of paying just the minimum due on credit card accounts
The minimum payment on credit accounts should be used as a convenience only because paying only the minimum could mean you end up paying 3 times the original purchase.
