Contacting the Credit bureaus:
If you have bad credit or problem credit or are considering filing
bankruptcy, one of your first steps should be a thorough examination of your
credit record. The Fair Credit Reporting Act now allows you to get one free
comprehensive disclosure of all the information in your credit file from
each of the three major credit bureaus once per year through a central
source. This central source can be access at:
Annual Credit Report Request Service
P.O. Box 105283
Atlanta, GA 30348-5283
1-877-322-8228
https://www.annualcreditreport.com
See below for contact information for the three credit bureaus:
Experian National Consumer Assistance Center
P.O. Box 2104
Allen TX 75013-2104
1-800-EXPERIAN (1-800-397-3742)
https://www.experian.com
Equifax Customer Information Service Center
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-997-2493
https://www.equifax.com
TransUnion Corporation
P.O. Box 390
Springfield, PA 19064-0390
1-800-916-8800
https://www.transunion.com
Finding a lawyer and legal advice: You can search for legal advice and view
many useful resources at the
American Bar Association's website.
You can also do a search for self-help books that will help you find a lawyer at Amazon.com
by searching for books with the kewords "find lawyer".
Also, you can go to www.google.com, search for the keywords "attorny finder"; this will return many search engines for legal assistance. Be careful, howerver, since it's not always clear how (or if) these sites exclude lawyers who are not in good standing with the ABA.
Information on Bankruptcy: Ten factors you should consider in decided whether to file bankruptcy -
- Bankruptcy may be the easiest and fastest way to deal with all types
of debt problems. It is a process under federal law designed to help people
and businesses get protection from their creditors. Bankruptcy can be a
right choice if you have no better way to deal with your debts. Although you
may want to try other options first, you should not wait until the last
minute to think about bankruptcy because some important rights may be lost
by delaying.
- Most cases are complicated. You should consider getting professional
help if you file for bankruptcy.
- Bankruptcy temporarily stops almost all creditors from taking any
steps against you except through the bankruptcy process.
- Bankruptcy can permanently wipe out your legal obligation to pay
back many of your debts.
- When bankruptcy does not wipe out a debt, a Chapter 13 bankruptcy
(i.e., a reorganization) gives you an opportunity to catch up on that debt.
- In most cases, you will not lose property by filing for bankruptcy.
- The initial fee for bankruptcy is presently $160 dollars under
Chapter 13 and $175 under Chapter 7; these fees are likely to go up in the
future.
- If you file bankruptcy, you usually do not need to go to court.
- Bankruptcy will usually not make your credit record any worse.
- Watch out for bankruptcy related scams! You can read about
bankruptcy scams on the DOJ website at:
http://www.usdoj.gov/ust/fs06.htm
Becoming Debt Free: Five Steps to Become Financially Healthy
This year, choose a smart resolution that will positively impact your
pocketbook and your peace of mind. Make a pledge to reduce your debt and
boost your credit score. Lowering the amount of debt you carry can
significantly improve your credit profile, reduce the loan rates you could
receive and save you a lot in interest payments. It just takes a few easy
steps and a little dedication to take charge of your debt.
- Get the Facts - Collect all your account, loan, and credit
information and go over the records with a fine tooth comb. Write down the
monthly payment, debt amount, interest rate and term of each debt on a sheet
of paper. Next, write down your total monthly income and list your estimated
monthly expenses. Order your Credit Report and Credit Score online to get a
baseline for tracking your improvements.
- Do the Math - Calculate how much you usually spend paying each debt
and how much interest that debt collects per month. Define which debts need
to be paid off first. Credit card debt and small loans should probably be
paid before low-rate student loans and home loans. The following questions
provide "red flags" for accounts that need immediate attention.
- Which debts have the highest interest rates?
- Are there accounts above 50% of their credit limit?
- Do you have any debts that are close to being paid off?
- Which debts have the highest annual fees?
- Negotiate and Consolidate - Start working on those high-interest
credit card debts first. Call your creditors and negotiate lower interest
rates or move your balances to less expensive credit cards. Accounts that
are above 50% of the available line of credit can harm your credit score;
pay off or move some of the balance to a different card. If you have a
credit card debt that is too large to handle, consider taking out a personal
loan from your bank for the amount. Your bank can probably give you a much
lower rate and a more lenient payment schedule.
- Refinance - After taking control of your credit card and small
debts, take a look at your major loans. Would it make sense to refinance
your mortgage? Could you consolidate some of your other debts into the loan?
What about cashing out some home equity to pay off a high-interest debt?
- Stick to the Plan - Now that you have lowered your rates and
refinanced your loans, create a payment schedule and a monthly budget. See
exactly how much you can afford to pay each month by subtracting your
expenses from your monthly income. Divide the remaining amount between the
accounts, paying the most to the debts with the shortest terms and highest
interest rates. Create a payment calendar with the due dates and the payment
amounts you just calculated for each bill. Sign up for automatic bill
payment through your bank or register for online payments to keep you on
schedule. To continue to keep your credit on track, register for Credit
Monitoring online and you'll receive quarterly credit reports, credit alert
e-mails and trending charts that outline how much your credit improves over
time. A comparison of the major Credit Monitoring services is available at:
http://www.fightidentitytheft.com/credit-monitoring.html. Set goals for
yourself and don't forget to celebrate when you reach debt-removal
milestones!
Helpful Contacts, Links & Downloads:
To opt out of pre-screened credit card offers, call: 1-888-567-8688.
To have your name added to the new national do not call list, call: 1-888-382-1222.
To stop telemarketing calls, contact:
Direct Marketing Association
Telephone Preference Service
P.O. Box 1559
Carmel, NY 10512
To stop direct mail marketing, contact:
Direct Marketing Association
Mail Preference Service
P.O. Box 643
Carmel, NY 10512
To stop unsolicited commercial e-mails, use the online form at:
http://www.dmaconsumers.org/offemaillist.html
To see if any identity thief has been passing bad checks on your account, call 1-800-262-7771.
If you think you have been a victim of identity theft, you can report it to the Federal Trade Commission at:
http://www.consumer.gov/idtheft
Click on the following link to access the free budget calculators at the National Foundation for Credit Counseling web site to help you get
a handle on your finances: http://www.nfcc.org/
