"Pay-to Delete", Is This Ethical or Even Legal?

Over the last 15 years, I have come across all kinds of so-called "credit repair" suggestions and/or scams.

One of these is called "Pay-to-Delete".  The basic idea is that if you have an account that is past due, charged off, or in collections, you can offer to pay 100% of the balance in exchange for the creditor or debt collector promising to delete that account from your credit report.

Sounds OK, but also sounds "a little to good to be true". 



The major crediot reporting bureaes are "for profit" businesses that collect data on all of us about how we use credit.  This includes:

How many accounts/credit cards you have

What type of credit accounts you use

How much debt you have

How you pay...on time, late, etc.



The credi bureaus, mainly the big three:










Tags: how to stop a wage garnishment, Debt Settlement Services, Oregon debt collection

Five Credit Score Myths

five credit score mythsThere are many false assumptions when it comes to credit scores. Here are five credit score myths that you should understand:

Myth #1: A low credit score means I will not get credit.

This is not true in all situations.  Whether or not a lender will extend credit to you depends on a number of factors:

Your score is important, but they also look at:

  • Income
  • Total Amount of Debt
  • Type of Debts
  • Payment history

Based on the lenders underwriting policy, they may or may not extend credit or they may offer you credit at an extremely high interest rate (Pay Day Loans, Finance Companies, etc.)

Many times, a person has a reasonably high credit score, but may not be extended credit because of the factors above.

Myth #2: A poor score will stay with me for a long time.

Not if your take the proper steps to improve your credit score.

A credit score is really just a picture of your risk at a point in time.  If you have had a financial problem in the past, had late or missed payments, then you score will have declined.

However, as you "get back on track" and or pay off or settle debt, your credit score will improve.

Myth #3: Credit Bureaus are unfair to minorities.

This myth is not true at all! Your race, religion, sex and many other things are not part of the credit score process.

Myth #4: My credit score will go down if I apply for new credit.

This has always been a myth about credit scores to most people.

Don't apply for several credit cards in a short time frame.  Making many requests for new credit will show as "inquiries" on your report.

So the next time your checking out and the clerk asks if you'd like to save an extra 15% today by applying for their store card...think again.

However, if you are shopping for a new car and visit several dealerships, they each may request a credit report on you but this is interpreted by the bureaus as basically a single inquiry and will not hurt your score.

Myth #5: Closing or canceling a credit card or account will improve your credit score.

Although not having access to "easy credit" may help you not abuse your available credit, as far as the credit reporting agencies are concerned, you may hurt your credit score by closing accounts.


The credit bureau has a term called "credit utilization ratio".  Basically, this is the amount of debt you have in relation to the amount of credit you could have.

For Example:

Let's say you have 5 credit cards.

  • One has a balance of $1,000 on a $2,500 limit.
  • The second has a balance of $1,500 with a limit of $1,500 (maxed out).
  • You have $0 balances on cards 3,4 and 5, but the total available credit limit on those is $7,500 ($2,500 each).

To the credit bureaus, you have:

  • Total outstanding balances = $2,500
  • Total available credit limit   = $11,500
  • Your credit utilization ratio is $2,500/$11,500 or 22% (not bad!)

If you decide to cancel the 3 cards that have $0 balances, your credit utilization ratio will look like this:

  • Total outstanding balances   = $2,500
  • Total available credit limit     = $4,000
  • Your credit utilization ratio is not $2,500/$4,000 or 62.5%

Your credit utilization ration went from 22% to 62.5% and this will probably lower your credit score!

As you can see, there are a lot of things that are used to determine your credit score.  Some thing you have control over and some you will have to work on over time.  If you would like to know how you can elimnated your debt for abut HALF of what you owe with reduced monthly payments, click on the link below or give us a call at 1-877-492-4109.

photo by: rosmary


Tags: credit card debt repair, Debt Settlement Services, five credit score myths

Why Can't You Include Student Loans in Bankruptcy?

why can't you inlcude student loans in bankruptcyIf you are considering filing for bankruptcy, you may be wondering: Does filing for bankruptcy get rid of my student loans?

Unfortunately, student loans are usually not discharged in the case of bankruptcy.  According to Chapter 7 Bankruptcy law the only time a student loan might be discharged is if it would cause the debtor “undue hardships”.  The same basic rule also applies to Chapter 13 Bankruptcy cases.  

Discharging student loans became popular during the 1970s, when students would file for bankruptcy soon after they finished their pricey education.  They would do so before they started earning so that they could get the loan out of the way.  However, the requirements for discharging student loans were changed in 1998.

According to these new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you. 

There are three things that would are used to determine whether a person is eligible to have their student loan discharged or not:

  1. Will repaying your student loans prevent you from maintaining a minimal standard of living?
  2. Will it be difficult for you to maintain your minimal standard of living over the repayment period?
  3. Did you make an effort to repay the loan before filing bankruptcy? Have you been repaying your loan for at least 5 years?

Even if you are unable to fully discharge your student loan debt by filing bankruptcy, there are many other options for dealing with student loans including deferments and forebearance.

Even though it is difficult, you should still discuss your student loans with your Bankruptcy attorney.  They know the law and can help you get the most benefit out of filing for bankruptcy.

If you are considering Bankruptcy, there are alternatives you should consider.  Our Debt Solutions Specialist can discuss your financial situation with you, and help you determine if Debt Settlement or Debt Consolidation would be a good solution for you! Give us a call at 1-877-492-4109 or click the link below.

include student loan in bankruptcy


Tags: alternatives to bankruptcy, Debt Settlement Services, debt consolidation program, include student loans in bankruptcy

Characteristics of the Best Debt Settlement Companies

 best debt settlement companyWhen you are searching the BEST DEBT SETTLEMENT COMPANIES, here are 3 questions to keep in mind -->

#1 Do they have a good rating with the Better Business Bureau?

  • Look for companies that have a Better Business Bureau (BBB) rating of B+ or higher.  It takes a lot of work for a company to receive and maintain a high rating with the BBB.
  • Watch out for complaints and DO NOT DEAL with a Debt Settlement company that has a long list of complaints!
  • Don't worry about accreditation. The BBB is a network of private companies that make money rating companies. They offer an "accreditation" to companies for a large annual fee in order to make more money.  whether or not a company is accredited is not the issue.

#2 Can you call the Debt Settlement company and talk to someone? 

When you call in to a good Debt Settlement Company, you should be able to talk to a live person that will listen to you and work with you to find the best solution possible. 

  • Can you understand them?
  • Do they make you feel comfortable
  • Are they listening to you or are they just trying to talk you into what they are offering?

A quality company seeks to find the right solution for your specific needs and debt settlement is not always the best fit!

#3  Does the Debt Settlement company's website give you plenty of information that without forcing you to "complete the form"?

Quality Debt Settlement Companies will provide a lot of information...FOR FREE, without enrolling in their program. Look for a company website that is informative, educational, and easy to understand.  You should be able to know what the company is about and what they have to offer before you give out your contact information.

Want to know if Debt Settlement is the best option for you?  Click on the link below or call


to talk to one of our Debt Solutions Specialists.



Tags: Debt Settlement Services, Best Debt Settlement Companies, BBB