You CAN correct errors on your credit report in 3 easy steps!
Step #1 - Get a Copy of your Credit Report
If you are willing to spend a little time and effort, there is no reason to spend hundreds of dollars paying someone else to correct errors on your credit report.
Start by pulling a current copy of your credit report. You can do this absolutely free once per year at www.annualcreditreport.com.
This site allows you to access your credit report from all three of the major credit reporting agencies (Experian, Equifax, & TransUnion)
If you want to see your credit score, you will have to pay a small fee. However, if you are just looking to clean up your credit report, there is really no reason to pay for your score at this time.
Step #2 - Take a Close Look at Each Credit Report
If you have paid off old accounts and they are still showing a balance or if it was charged off and moved to a collection agency, you can dispute the entry and it will be removed.
Most disputes can be addressed online. Each agency will have it's own procedure, but basically you will need to provide them with proof of payment such as:
- A statement from the creditor or collection agency showing the account has been paid.
- A canceled check showing the payment was processed.
- A bank statement showing canceled check or check-by-phone entry to the agency.
Here are the links to dispute errors:
Step #3 - Follow Up!
Correcting or removing errors on your credit report may take 30-60 days. You should receive an email or letter as to the status of your dispute, If you don't, go back online to see what's been done.
If the credit bureaus have not made the correction, make a follow up dispute! If you have provided proof (as above) that this account has been paid or settled-as-agreed, they will eventually correct the error, so don't give up.
You may need to call the agency and speak to a representative if you can't find any updates online.
Experian: 888-397-3742
Equifax: 800-685-1111
TransUnion: 800-916-8800
If you have accounts that you have not paid on in some time, we may be able to negotiate a settlement at 50% or less!
photo by: TrinityCreditServices
Can a Debt Collector Garnish Retirement Income?
The answer is NO!
First of all, if you fall behind on your credit card or other debt payments, your creditors don't have the right to automatically garnish any sort of income. Before a creditor can get a writ of garnishment, they have a whole set of hurdles to get over.
The creditor will write you multiple harsh letters and call you over and over! They will use many dirty tricks of debt collection to try and collect the debt.
If the collector is unsuccessful in getting you to pay up, then they may decide to file a complaint and you would receive a SUMMONS. If you owe the debt or you decide not to appear in court to fight the summons, your creditor will be awarded a DEFAULT JUDGEMENT adn they can apply for a WRIT OF GARNISHMENT.
For a great article about
What To Do If You Receive A Summons <--- Click This Link
If your only source of income is from one of the following, they CANNOT GARNISH IT!!!
- Social Security benefits
- Supplemental Security Income (SSI)
- Welfare or public assistance
- Spousal support or child support
- Public or private pensions
- Veterans benefits and/or loans
- Disability proceeds of life insurance policies
- Cash surrender value of life insurance policies
WARNING:
If you deposit your retirement income (pension, Social Security...) together with any other source of income (part-time job...), then THE ENTIRE ACCOUNT COULD BE SUBJECT TO A BANK LEVY!
As long as you DO NOT CO-MINGLE your retirement income with any other source of income, then the retirement income is safe!
If you are struggling to pay off your debt, or know someone who is being threatened with a garnishment, our Debt Settlement team can help you settle your debts for 50% or less that what you owe! Give us a call at 1-877-492-4109 or click this link for a FREE Debt Consultation.
You want a good, clean credit report, right? Of course you do. We all want to keep our credit as tidy so we can borrow money at a low interest rate and keep our insurance rates and security deposits down. It is very important to work on raising your credit score, but it is also important that you understand what does not affect your score. That way you won’t spend time worrying about things that just don’t matter.
Here are 6 things that can’t hurt (or help) your credit scores:
#1: Your Personal Information
Personal information such as your name, current and previous addresses, Social Security number, and birth date is included on your credit report with each of the three main credit reporting bureaus. However, this information does not have any bearing on your credit score. They also cannot factor in your age, education level, race, gender or marital status.
#2: Income Changes
Most people are surprised to learn that income isn’t included on your credit report. As long as you continue to pay your bills on time, earning less has no negative effect on your credit scores. However, creditors generally ask for your income information on their applications. So, making less money could be a stumbling block to getting new credit because in addition to your credit score, your income, expenses, and job stability are taken into consideration by a lender.
#3: Getting Turned Down for Credit
Although your credit report does show who has been looking at your credit report, your credit report doesn’t show whether an application for a loan or credit card was approved or declined. Don’t worry if you’ve been turned down for credit. This has absolutely no effect on your credit score
#4: Paying Small or Local Companies
Bills you pay to small companies or individuals for local services like lawn care, pest control, or rent, usually don’t show up on your credit report. The main credit bureaus have strict requirements about who can report consumer information to them, and in many cases it’s just not feasible for small businesses to do so.
If a merchant doesn’t report payment information to the credit bureaus, then your payment history with that company can’t affect your credit scores. However, if you don’t pay up and they turn your account over to a collection agency, that’s another story! Collection companies will report information to the credit bureaus as soon as they acquire the debt.
#5: Adding an Authorized User
Adding someone to your credit card as an authorized user allows them to get a card in their name and to make charges up to the credit limit that you allow. An authorized user has no legal responsibility to repay the debt. Their credit situation can’t affect yours in any way.
However, your credit scores could plummet if an authorized user abuses a credit card and you can’t afford to make the minimum monthly payments. So always be cautious about adding anyone to your credit cards.
#6: Checking Your Own Credit
Many people worry about pulling their credit report because they think that it will count against them. Pulling your own credit report is called a “soft pull” and it does not hurt your credit scores.
Understanding what does and does not have an effect on your credit score will help you to focus your efforts in the right areas. If you need help eliminating debt once and for all, our Debt Solutions Specialist can explain what programs are available to help you no matter what the situation. Simply give us a call or click on the link for a free debt elimination consultation.
photo by: Casey Serin
If you are delinquent in paying your debts, a creditor can decide to pursue all legal avenues including wage garnishment.
But before you panic, understand that a creditor cannot garnish your wages just because you are behind on credit card or other unsecured debts!
Before they can apply for a WRIT OF GARNISHMENT, a creditor will:
- Contact you in writing or by phone in an attempt to collect the debt and/or work out a repayment plan.
- If the creditor's collections efforts are unsuccessful, they will turn the account over to a collection agency. This collection agency will also contact you in writing and by phone to collect the debt. In fact, they will most likely call you multiple times a day at all hours. You do not have to put up with this. To learn what collectors can and can't do read more about Fair Debt Collection Practices.
- If the collection agency's attempts to collect the debt are unsuccessful, they may decide to retain a local attorney to file a claim. If they are a ATTORNEY/COLLECTION FIRM, they will file the claim themselves.
- If this happens, you will receive a SUMMONS and it will basically state that you have 20 or 30 days (States vary as to how long you have) to "ANSWER" the claim. An "ANSWER" is you response to the claim if you feel that YOU DO NOT OWE THE DEBT CLAIMED IN THE SUMMONS.
- It usually takes about 45-60 days before a court date is set. NO, YOU DO NOT HAVE TO GO TO COURT. This is just a formal hearing to award the judgment to the plaintiff (creditor) by default. Default meaning that you did not dispute the claim.
- With the DEFAULT JUDGMENT, the creditor can now apply for a writ of garnishment.
What happens once your creditor is awarded a Writ of Garnishment?
In most cases, an agreement not to pursue wage garnishment can be negotiated (if you act quickly).
A STIPULATED AGREEMENT would state that you will make a payment every month until either the full amount or a slightly reduced amount is repaid.
Depending on your state of residency, there may be an interest rate limit(Oregon is 9%, Washington is 12%). Be sure to check your state's limit.
As long as you make your payments on time, the creditor will not act on the wage garnishment.
What types of income are exempt from Wage Garnishment?
The following types of income are exempt from wage garnishment:
- Social Security benefits
- Supplemental Security Income (SSI)
- Welfare or public assistance
- Spousal support or child support
- Public or private pensions
- Veterans benefits and/or loans
- Disability proceeds of life insurance policies
- Cash surrender value of life insurance policies
- and many others
There are also exemptions and limits as to the calculation final amount of wage garnishment. We have found that most employers are unaware of these exemptions and limitations, so make sure you know your rights!
In Oregon for example, if you earn below a certain amount, you may be fully exempt from wage garnishment! Click her to find out more!
Finally, if all of this seems a "little too much for you to handle", we can help. One of our Debt Solutions Specialists can help you decide what is the best next step for you. Give us a call at 1-877-492-4109 or simply click on the link below for a free debt elimination consultation.
When you contact the Debt Settlement Company (DSC), do you fee like they are more interested in getting you to sign up or do they take the time to do a complete analysis of your particular financial situation? If so, be careful. Read on to learn what to look for in the Best Debt Settlement Companies.
#1 The best debt settlement companies want to know several things about you and the debt you have incurred such as:
- What type of debt do you have?
- Is is secured or unsecured?
- How did you get too much debt or behind on your debt?
- Are you employed?
- What is your monthly budget? In other words, how much to do bring home and how much do you pay out each month. VERY IMPORTANT!
- If you are retired, is your retirement income (pension, retirement fund, social security) deposited seperately and NOT CO-MINGLED with other income you might earn from another job. This is critically important!
Click HERE for a FREE Debt Settlement Consultation!
#2 The best debt settlement companies will assign you a counselor or account representative that you can always contact with any question or concerns.
If you feel like you are getting "shuffled from one person to another", be wary!
#3 The best debt settlement companies charge fees that are consistent with the industry and comply with their particular states laws or guidelines.
#4 The best debt settlement companies will rate very high with their local Better Business Bureau (BBB).
It is not necessary for them to be accredited with the BBB, but make sure to check out any complaints or issues this company may have had. The best debt settlement companies should have an A rating or higher!
#5 Finally, the best debt settlement companies will follow through with you after you have requested information and or a financial analysis. If you have to call them back or feel like they are "too busy" to help you,...keep looking!
If you have old credit card debt, you may be wondering how long a collector has to collect.
There was an interesting article in our local newspaper "The Oregonian" today, 4.2.12 entitled "More time for debt collectors".
Seems that three people sued the credit card/debt collectors (specifically Daniel N. Gordon, an attorney in Eugene that specializes in debt collection) that the creditors could not sue after 3 years because the statute of limitations was only 3 years in the state of Delaware (the state where the credit card company lists as the home office).
The Oregon Court of Appeals ruled that a creditor can have as long as the individual's state's statutes of limitation to attempt to collect a debt.
In Oregon and Washington, the statute of limitations is 6 years.
What does that mean to you?
If you have old credit card accounts that you have not paid on for over 6 years you have a couple of rights that you need to know:
If you see that debt (longer than 6 years) on your credit report, you can request that it be removed as the statutes of limitations has expired.
The credit reporting agency (usually Experian, Equifax or TransUnion) will investigate and if you are correct, remove the item.
In some listings on a credit report, you will see a notation of when this account is scheduled to be removed due to the statute of limitations being exceeded.
It is important for you to know what the statute of limitations is for your state. You can find a listing (although you should double check on line at your State's official site) at:
LISTING OF STATE'S STATUTES OF LIMITATIONS
Another reason it is important for you to know your rights is if a collector sues by filing a claim in the county court of your residency, you can dispute the claim if the statute of limiations has expired (for your state of residency).
WARNING!
You need to be aware of the term "re-aging" debt. If a collector calls and you agree to make a small payment to stop further action, etc., the statute of limitations clock is reset and basically starts over!
Therefore, if you have old debt, is is NOT WISE to talk with a collector or to make any acknowledgment of the debt.
According to the Fair Debt Collection Practice Act (FDCPA), if you make a request in writing to the collector, they must stop calling you at home or at work.
In making the request, DO NOT ACKNOWLEDGE THE DEBT!
State that you dispute the validity of the debt and that you are not responsible.
Demand that they cease from calling you at work and home or that you will report them to your state's Attorney General's office.
If you would like help, here's a link that will show you HOW TO STOP COLLECTION CALLS.
If you want to resolve an old debt rather than risk legal action from collectors, you should consider a Debt Settlement Program, where you may be able to settle the debt at 50% or less and have it removed from your credit report!
For more information, click the link below for a FREE CONSULTATION!
If you are like most everyone else out there, this recession has been a loud wake-up call to cut back on frivolous expenses, and save more. Now that the economy is slowly bouncing back, consumer spending is starting to rise and savings rates are going back down.
There’s nothing wrong with spending a little on unnecessary items once in a while, don’t neglect your long-term financial goals, like paying off debt, building an emergency fund and saving for retirement.
Here are 3 easy ways to save money and free up extra cash to meet your financial goals.
Tip #1: Create a Money Routine & Stick to it!
Having a routine when it comes to your money is one of the best ways to master your personal finances and avoid unnecessary expenses like overdraft fees and late charges. Most people don’t intend to make late payments or overdraw their bank account, but basic money management can fall through the cracks when you don’t have a money routine.
The solution for staying on top of your finances and never getting hit with expensive late fees is to create and stick to a Money Routine. Set aside a couple of hours, one day each week to balance your checking accounts and pay bills or set up bill payments online.
By sticking with your routine, you will accomplish more in your financial life, like following a budget, closely monitoring your investments, and SAVING MORE MONEY! It’s also a great way to catch a would-be identity thief who could wreck your finances.
Tip #2: Calculate how much TIME that item will cost you before you buy
A great way to rein in spending is to consider what an item costs you in time, rather than dollars, before you buy it.
I’ll use Sarah as an example. She works as an administrative assistant in an insurance office and earns $15 per hour. Whenever Sarah is trying to decide whether to buy something, she divides her hourly wage into the price to figure out how much working time the item would cost her.
For example, if a new outfit cost $100, and you devide that $100 by $12 (the amount you make per hour), that new outfit will cost you a full day's work before you pay taxes! Do you love that new outfit enough to spend that much time earning it? If the answer is no, just walk away, and save your hard earned money for something that is worth it.
Tip #3: Be a Smart Grocery Shopper
Most people think they can save money by eating more home-cooked meals. But don’t be fooled. Buying groceries won't automatically save you money. If you show up at the supermarket hungry and without a plan, you can easily buy more than you need or make expensive choices.
To save on groceries, always plan a menu for the week. Make sure to plan a couple of nights to eat up those left overs you are sure to have. Try making the main dish of one meal without meat to save more and eat healthy. Coupons can certainly help lower your food bill, but don’t get lured into buying something you don’t need or that isn’t a healthy option, just because you have a coupon for it.
When you’re at the grocery store, only buy what you can eat. Prices for non-food and some non-perishable items—like paper towels, soaps, toothpaste, and drink mixes—can be too high. Do your research to see if prices are lower at local discount warehouse stores or drugstores.
You might be surprised by how much small changes can reduce anxiety about money, improve your financial life, and make you feel more in control of your financial future.
Do you find it difficult to manage multiple debt payments and due dates each month? If you don't stay organized you can easily pay your bills late and that can add up to hundreds of dollars in late and over limit fees.
One way to help with this problem is to combine your debt into one low interest Debt Consolidation Loan.
5 Benefits to Debt Consolidation Loans
#1 Consolidate Your Debts Into One Monthly Payment: Using debt consolidation loans, you can pay off all or most of your unsecured bills (credit cards, payday loans, medical bills etc) at once. You're then left with a single loan, which you'll repay through an affordable payment plan.
#2 Eliminate collection calls: You can use your Debt Consolidation Loan to pay off debts that are past due or in collections. This will eliminate harrassing calls and letters from your creditors and collection agencies.
#3 Reduce Your Interest Rate: Debt Consolidation Loans are often offered at lower rates than credit cards. By combining your high interest credit debt into a low interest Debt Consolidation Loan, you will reduce your monthly payment and save money.
#4 Easier Monthly Budgeting: A Debt Consolidation Loan offers a monthly payment that stays the same over the course of the loan. This one consistent monthly payment makes monthly budgeting much easier. Create your household budget using this FREE BUDGET WORKSHEET.
#5 Improve Your Credit Score: When you pay off multiple debts with a single Debt Consolidation loan, and making consistent monthly payments, your credit score will improve quickly.
It can be difficult to qualify for a Debt Consolidation loan. If you are not able to qualify for a Debt Consolidation loan, you may want to consider enrolling in a Debt Consolidation Program instead. These programs combine your monthly debt payments into one lower payment while reducing your interest rate and eliminating your debt in just 3-5 years!
For more information on Debt Consolidation and other Debt Elimination programs, please give us a call or simply click on the link below for a FREE DEBT ELIMINATION SUMMARY!
Have funds been taken from you bank account by one of your creditors?
If you get behind on your payments to your creditors, they can legally seize funds from your bank account! Are you behind on any debts such as:
- Credit Cards
- Pay Day Loans
- Personal Loans
- Car Reposessions
- Medical Bills
If you are behind on your payments, don't worry quite yet. A creditor can take a number of steps to collect, but they cannot contact your bank and take money out of your account without a WRIT OF GARNISHMENT OR LEVY.
A creditor can attempt to collect an unpaid, unsecured debt with:
- Phone calls (stop the collection calls --> CLICK HERE)
- Letters
- Summons to be awarded a DEFAULT JUDGMENT
Even if you get behind a month or so on a credit card bill, your creditor cannot go to your bank to request funds without first going through a series of legal attempts to collect.
Having said that, a creditor/collector is PROHIBITED from violating the Fair Debt Collection Practices Act (FDCPA). If you feel that you are being harassed by creditors, take some time to LEARN ABOUT YOUR RIGHTS.
If a credior has been awarded a judgment concerning the debt you owe, then they can go after your bank funds!
There are ways to stop a bank levy or to recover funds taken or frozen due to a writ of garnishment or levy having been presented to your bank. We can help. Give us a call or click the link below for a free consultation!
Can a debt collector call me at work?
Creditors are notorious for violating the Fair Debt Collection Practices Act (FDCPA). This LAW is supposed to protect consumers from unscrupulous and ILLEGAL debt collection activity! However, most consumers are unaware of their RIGHTS UNDER THE LAW and are intimidated.
The Federal Trade Commission (FTC) has very good information that every consumers should understand. Click her for a FREE GUIDE FOR CONSUMERS.
A debt collector is PROHIBITED from calling you at work IF they have been told (orally or in writing) that you are not allowed to receive calls at work. If you are getting calls at work, here's what you need to do to STOP THE CALLS.
- Write a letter demanding them to stop contacting you at home or at work.
- Send the letter by registered mail so that you have proof that the collector received it. (pay for a "return receipt")
- Make a copy of your letter.
Once the collector receives your letter, they may not contact you again, with two exceptions:
- A collector can contact you to tell you there will be no further contact or
- A collector can contact you to let you know that they or the creditor intend to take a specific action, like filing a lawsuit.
If they continue to call, you can report their ILLEGAL ACTIVITY to your state's Attorey Generals office.
Did you know? A debt collector in prohibited from:
- Calling before 8am or after 9pm at night.
- Using harassment such as making threats, using obscene language or repeatedly calling many times a day.
- Making false claims such as claiming to be an attorney or government representative.
- Misrepresenting the amount you owe.
- Making false statements. (They cannot say that you will "go to jail" or "be arrested" or even claim to take legal action if in fact, they do not do so.)
If you have been receiving collections calls and would like help with stopping the calls and eliminating the debt once and for all, our Solutions Specialist are here to help. Give us a call at 877-492-4109 or click on the link below!
