Credit Dispute And How To File For One
It may be a rare occurrence, but an error appearing on your credit report can happen every once in a while. It may be in the form of a purchase transaction that did not take place or an over-due payment or debt that also should not be there. In this instance you are entitled to file for a credit dispute. Not everyone even knows that this exists, so it is a good idea to be aware of you rights and what you must do to rectify the matter.
Your first move should be to request a full breakdown of your credit report and carefully go through it for any discrepancies. Many individuals can suffer at the hands of identity theft due to being unaware fraudulent activity on their credit report.
Once you are completely satisfied that there has indeed been an erroneous item on the report, you will need to send a letter including the details of your dispute to your creditor. You may also wish to request a explanation at their earliest convenience. For disputing debts that do not belong to you, remember to include details of when your account was first opened. In some cases you may require other forms of proof that the debt is unrelated to you such as a bank statement.
Should you be requesting to settle a credit dispute regarding an old debt of yours, you may wish to include a letter of negotiation. It is best to let your creditors know that you will be in contact and keep them up to date on your plans of action. Your creditors will appreciate that you are trying to clear your debts and should respond positively. Let them know you are eager to get the debt sorted out and are taking full responsibility for your debts.
It is also possible to utilize a credit dispute to change inaccurate details on your report. These types of errors may be due to moving home and the details have not been updated, or other personal details such as your social security number may be incorrect.
When you are going through the process of a credit dispute, always remember to take a copy of any letters you send to your creditors for your own records. Similarly make sure to keep any correspondence from the creditors in a safe place. These documents maybe required further down the line. If you have not heard from them in a while, make sure to call them, don’t let too much time lapse.
Using A Credit Repair Company To Raise Your Credit Score
No one wants to have a low credit rating. With so much riding on having good credit such as buying your own home and other important necessities such as getting a car, we need to do everything in our power too keep the credit score above water. If you have found yourself with a low credit score and want to do something about it, using a credit repair company can help you . Following is some advice on various companies of this sort and how you can better manage your finances.
Legacy legal is a credit repair company with a solid reputation. They will also give you important information on preventing identity theft that can further lower your credit reputation. You will be given counsel on how to manage your payments and ways to avoid going bankrupt and losing your assets as well as a full credit repair guide. You can access their website at www.legacylegal.com where you will be able to read through the terms and conditions and gain a further insight into what they can offer you.
Another credit repair company of note is Lexington Law. This Law firm deals primarily in customer advocacy and also has a high quality reputation. They offer a very reasonable service charge with a monthly payment of $39 as well as an initial fee of $99. This will expose you to the professional experience of many lawyers all over the country who will be there with a credit repair service to help you settle your credit problems. For a more in-depth look at what this firm can offer you, go to www.lexingtonlaw.com.
As well as enlisting the help of a credit repair company, you can also rethink your budgeting methods and structure your spending to accommodate you available income. Keep your books balanced and find out exactly how much you need for essential bills and household costs and what will go towards debts. Sometimes it is just a matter of cutting out a few small treats that can add up to a costly monthly bill. If you are finding that you spend on unnecessary items, try to cut back and trim down the luxuries.
Always remember to apply for a copy of your credit report on a regular basis. You will need to keep track of your credit activity and when new accounts are beginning and accounts that have been paid off. One of the most important factors of good finance management is keeping organized. Try not to let your accounts get messy.
Breaking The Cycle And Eliminating Gambling Debt
Most individuals who are experiencing debt due to overspending on luxuries they cannot afford, come to the realization that they have to stop spending to stop the mounting debts. It really is that simple. The gambler’s debt on the other hand, is a completely different ballgame. If the gambler was to follow the same reasoning as the over spender, they would simply stop gambling.
However, it is not that straightforward. The gambler is of the mindset that to carry on gambling will eventually pay off their debts when they have that big win that they know they are due. Every time they lose, makes them more certain that the next one will be the big win that will catapult them into a life of financial freedom.
Some psychologists dub gambling as a disease of the mind as once it takes hold, it is a never ending uphill struggle. Even if the gambler wins a decent amount, those winnings will immediately be used for more wins which don’t end up coming to fruition.
After losing money, the gambler feels that they have been cheated and made to feel a fool. They feel that if they carry on, they will “make up for it” and be the one to have the last laugh.
The unfortunate fact is that gambling does not pay off. If it did, casinos and other gambling establishments would cease to exist as they would not make the huge profits that they do. The house always wins. Every now and again there will be someone who wins big and the casinos will be sure to shout it from the rooftops to give others starry eyed belief that they too can be the lucky one.
The first positive step to remove yourself from the gambling train of thought is to realize that you can’t win. Even if you are due to win, the winnings will be used and then be lost. It is a vicious cycle that will keep going until there is nothing left.
Once you have accepted that there is even a chance that you can’t win, keep the momentum by reading up on gambling statistics and how it is a lose-lose situation. Think about it logically, why is getting into the gambling business so lucrative? Because as a business person, they cannot lose. There will always be gamblers willing to throw away their hard earned cash.
Even those who win big such as lottery winners and big bingo wins. They are rarely happier than before they won. There have been many horror stories of those winning millions but losing everything they cared about. All in all, it isn’t something worth striving for.
Don’t think that if you stop the big gambling, it is ok to partake in a few small bets. It is akin to alcoholism, with one taste and you could be back to square one. Give it up completely and think about how you could be spending your money on yourself and your family to give joy and happiness as opposed to frustration and anger.
Once you banish yourself from any gambling activity, you will start to see your bank balance rise. You will have more money than you ever could when gambling and free up your time for real living.
Is An Unsecured Debt Consolidation Loans The Answer?
If you are experiencing financial difficulties with a multitude of debts to pay every month and don’t have any assets which could be security for a loan, an unsecured debt consolidation loan might just be the answer to your prayers.
An unsecured loan simply means that you do not need to have a large asset that would be forfeited should you not be able to pay the loan. An example of a secured loan would be a mortgage, where the house would be used as collateral for the loan.
Banks are usually more tentative about dishing out unsecured loans as they have a greater risk of not getting the full settlement. Due to this, the interest rates are higher than that of a secured loan where there is little or no risk. For the borrower with the unsecured loan, in the event of being unable to pay, will benefit more as there is no asset to be forfeited. However, this is not the best train of thought before entering into applying for a loan. The emphasis should be on managing your costs to allow you to be able to pay back your loan at a suitable rate.
Opting for a debt consolidation loan will allow you to unite all of your debts into one monthly payment, with what should be a lower interest rate than for you individual debt payments. The beauty of the debt consolidation is that you can be safe in the knowledge that each and every debt is being paid with no additional fees or charges being added on to your balance for missed or late payments. The amount of money and stress that can be saved by this form of debt management can be enormous.
Prior to the approval of your loan, you will need to provide the bank with your current financial circumstances such as, how much you earn, your history and they will also perform a credit check.
If you have not had any bad credit history and are currently in employment with a reasonably good income, there should be no reason for you to have any trouble finding an unsecured debt consolidation loan. Most establishments are eager to have loan custom as they will make a profit from the interest to be paid. In order to pay the monthly payments, you will just have to budget a bit better and avoid any unnecessary spending.
Don’t settle for the first offer that is made to you. There is high competition for debt consolidation loans from different financial establishments. Get a few quotes and compare the terms and conditions as well as the interest rates. Find yourself a debt management solution that you can maintain allowing you to clear those debts.
Looking Into Nonprofit Debt Consolidation Loans To Start Eliminating Your Debt
One of the hardest parts of trying to clear your debts is keeping track of all the little as well as large debts that have to be paid each month. Many people are opting for nonprofit debt consolidation loans to keep all of their debts in one place making them easier to keep track of. Using this type of loan means you have one payment per month and more often than not the interest rate will be overall lower then what you were paying for the individual debts.
The most obvious place to get your debt consolidation loan would be from your own bank. If you have been a member of your bank for a long time and have had a reasonable track record, you are probably more likely to be granted a loan. It is also easier for the bank to keep track of you and your financial circumstances.
Another place that you can apply for a loan, is with a Credit Union. This type of establishment is probably a bit more “user friendly” with the structure of a co-operative consisting of all of the members being equal owners of the business. These unions use different methods and laws and will be more likely to give you a wider choice with debt counselling along the way. In general, they usually offer more competitive interest rates than banks.
The members of the credit union, both save money and borrow money. The borrowers will pay interest which then goes towards the savers, who earn the interest, keeping all of the money in one place.
However, Credit Unions are not usually open to all and sundry. With regulation by the Credit Union National Association, (CUNA), there is a group of people that may join the union such as, a certain area, workplace or education establishment. This group of members is known as the “field of association” and you must belong to that field in order to borrow or save with that particular union.
Once you have found a credit union that you may be a part of, you can find out if they offer debt consolidation loan. If so, you can get the necessary details and advice.
Once you have the figures including the interest rates and the payment instalments, you can compare with your existing debt solutions. You may even receive free debt counselling from the union to help you make an informed choice as to what would be the most financially suitable option. However, the bottom line is – will you be saving and/or will the monthly payments be realistic and maintainable?
It is worth reading through all the terms and conditions of the nonprofit debt consolidation loans and make sure you are happy with all the factors. You will probably find that in most cases. the credit unions will offer a lower interest rate with a less “clinical” setting. The emphasis is not on profiting from your hardship but helping you get out of it.
Getting Out Of Debt
In the current financial climate, debt is a word that we hear almost every day and many are searching for best methods for getting out of debt. Living in a nation of credit based consumption, it really was only a matter of time before the debts came to a head. For some it crept slowly up on them and for others it was a short sharp slap in the face.
Many who previously sailed along without debts or any financial worries for that matter are losing their jobs and being faced with the nightmare that is debt problems for the first time in their life.
The unfortunate problem with getting ourselves into debt is that it is easy to get there but very difficult to get out, a bit like losing weight, easy to put on, hard to lose. However, it is very possible. The main factor involved in successful debt management is to keep up the monthly instalments of your credit cards or other creditors and make sure the payments come first before any luxuries or unnecessary costs.
For some that maybe easier said than done. If this alone is not helping you get out of debt, your next step should probably be debt consolidation. This is the process of combining all of your debts together and paying one monthly instalment. This usually means getting a better rate of interest, and over a longer period of time with more affordable monthly payments.
Before embarking on debt consolidation, you must destroy all traces of your credit and store cards. There will be no more purchasing on credit and every single debt will be included in your debt consolidation. That way, you can be sure that everything is being accounted for. Once you have consolidated your debts, the payment for the loan will be paid on time every month and all other bills will come second. Do not take a loan if you cannot afford the instalments, that is a sure way to increase your debts further. Write up a balance sheet with all your out-going costs and income, and work out exactly what you can afford to pay.
Another method for getting out of debt is by negotiating your credit payments. Most creditors will be happy to help you pay your debts, where you may extend the period of time for repaying with smaller payments each month. Most companies will offer you a payment holiday, however, you will need to make up for this break. This type of method is more appropriate when your struggles are temporary.
Finally, if there is absolutely nothing else that will work to get you out of debt, you can declare, or have yourself declared bankrupt. During this process, you will lose everything you own. Any assets of worth will be taken to contribute to the debts. After this, it will be difficult for you to get credit for a long time, however if this is the only way out, you can cut your losses and make a new start.
The Truth About Government Debt Relief Grants And Where To Look For Financial Aid
It can be difficult to find out exactly what you are actually entitled to in terms of government financial aid, with all the misinformation being thrown about. The fact is you can obtain help with your finances but the government cannot clear your debts for you.
Rather than give you money to settle your debts, the government can issue grants for various reasons that could help you financially, should you qualify for them.
In total, there are 26 types of grant that are available through varying agencies. Some agencies will develop grants for areas of public interest such as theatres and community centres, then there will be special grants for the healthcare services within research. These grants are for large groups of people but grants for individuals can be provided also.
In order to qualify for an individual grant, you must satisfy a certain requirement. Such requirements include, relief due to a natural disaster, this could include flooding or a fire. Other grants maybe issued to help pay for accommodation or to aid small businesses. A full list of grant types and information on them can be found at www.grants.gov.
Along with government grants there is also financial assistance available in the form of a loan. This may seem like acquiring another debt to pay for previous debts, however, this is not the case. These government loans have a very minimal interest rate which could save you huge sums on your current debt interest rates. These loans also have certain similar requirements to qualify.
Government loans can be provided to you through the banking system. Find out if your bank has this process in place and if so, if there are any that you could qualify for. A more in-depth insight into government loans can be found at, www.govloans,gov.
Another means of acquiring financial aid is through debt relief agencies. However, these agencies are not government run and while many of them are legitimate agencies others may not have your interests at heart. Be careful when approaching them for help with your debt problems.
These debt relief agencies may charge you for finding an applicable grant or loan. It may be the case that the charge is worth it taking into consideration the debt solutions provided, but it may end up that you are worse off than when you started. If you are searching the internet for reputable companies for help to get out of debt, when the website ends in .gov, it means it is government run, anything else is likely to be a debt relief agency.
Remember that if it sounds too good to be true it usually is. Many companies offering debt relief will simply only be able to help you declare bankruptcy rather than finding a source to help you pay your debts.
It is always better to find out exactly what you are entitled to before applying for debt help to avoid being sent on a costly wild goose chase with nothing at the end.
What Is The Fair Debt Collection Practices Act And How Can It Benefit Me
A few decades ago it was realized that protection for consumers was becoming increasingly necessary due to the ruthlessness of debt recovery companies with questionable strategies for recovering the debts. The Fair Debt Collection Practices Act (FDCPA) was finally passed in 1978 to help consumers in this way and to confront erroneous information held about them.
Following are some of the main points of the act that are beneficial to consumers.
The consumer will be covered in the event where a debt settlement company is getting in touch on behalf of another financial company. In many cases the contact may be somewhat intimidating given further need for the FDCPA. If it is the financial company to which the consumer owes is contacting them , in most states, the FDCPA will not be relevant.
The debt settlement company must, on each contact, inform you of the nature of their company and your right for challenging the debt itself, this is known as the 1692 notice.
You may put in writing within the 30 day period of notice,
a request for all the information regarding the debt, such as the creditor to which the debt is owed and proof that the debt exists.
Should they take the matter to court, it is required to be in the area in which you live or where the debt took place after signing the agreement.
The debt agencies must never contact you by telephone before 8am or after 9pm in the evening, in your local time zone or call continually in an intimidating manner. If you put in writing that you do not wish to be contacted at work, this must also be adhered to.
Should you write to them stating that you do not wish to be contacted, they must abide by your wishes only informing you of their imminent actions where appropriate.
If you have enlisted the aid of an attorney, the debt agency must use them as the first point of contact.
All details regarding your debt must be correct and the debt agency cannot act as if they are attorneys when contacting you to put you in a position where you might disclose personal information. They should never force you to pay an amount exceeding you actual debt.
Any aggressive language or actions are forbidden and they cannot publish your personal details on a bad debt record or reveal the details to any other establishment.
Any threats such as court action or arrest must not be applied unless they are going to take place.
If you are currently being contacted by a debt settlement company on behalf of your creditor, you would be well advised to read the full act for the full details of your rights. If the act has been contradicted in any way, you should report this to the Federal Trade Commission. Always be aware of your rights as a citizen and act accordingly.