Debt Questions

[sbpebbles]

I have some debt questions that I'm hoping someone can answer for me..Up until 2 years ago I had gotten myself pretty heavy in debt..I was young and very dumb and made A LOT of mistakes..I currently have a lot of bills in collections. I've been trying to pay off what I can, the smaller ones right now, and working my way up to the bigger ones..I'm not currently working which is hurting my situation A LOT...I have several good leads on jobs right now and hoping and praying I'll land something in the near future..in the meantime I know my credit is being affected..luckily, as luckily as you can consider it i guess, only one company has taken me to court..I checked my credit report 2 years ago and seen that a lot of debts were "WRITTEN OFF" by the companies..When I checked that report I added up all the figures and it was about $7.000..So here's my questions

1. Should I run another credit report BEFORE i get a job?

2. Is an eviction included in your credit report? (as I've said i've made A LOT of mistakes and I'm working on fixing it)

3. My mother is currently doing debt consolidation, would that be my best way to go to get my credit cleaned up?

4. If I go the route of debt consolidation, how to I go about finding a good one? My mother uses Wisconsin Debt Helpers...to me the guy who works there seems a little sketchy

5. How long after I've paid off a company does it show up on the report? say i have a bill in collections and I manage to pay it, will my credit report reflect that the debt was paid?

In the past 2 years I have not incurred anymore debt. Somehow, by the skin of my back, I qualified for a cell phone (2year contract that the company let me out of just over a year in but I'm still with the company month to month) so I'm assuming since I've been paying that on time that it reflects positive on my credit...I pay my car insurance on time every month (owned the car over 3 years) and my storage unit fee (not sure that gets reported to credit or not since it's a family run business here in our very small town). I'm just worried because I know I have some large bills out there but right now I"m living on basically child support. my family helps where they can but as i said my mother is in consolidation as well..my daughter also receives SSI but that's HER money and I only use that appropriately. These are my bills and I know I'm responsible for them. Does anyone have any other advice or tips for me to get back on the right track? thanks for listening to me!

 

[minnie1928]

I have some debt questions that I'm hoping someone can answer for me..Up until 2 years ago I had gotten myself pretty heavy in debt..I was young and very dumb and made A LOT of mistakes..I currently have a lot of bills in collections. I've been trying to pay off what I can, the smaller ones right now, and working my way up to the bigger ones..I'm not currently working which is hurting my situation A LOT...I have several good leads on jobs right now and hoping and praying I'll land something in the near future..in the meantime I know my credit is being affected..luckily, as luckily as you can consider it i guess, only one company has taken me to court..I checked my credit report 2 years ago and seen that a lot of debts were "WRITTEN OFF" by the companies..When I checked that report I added up all the figures and it was about $7.000..So here's my questions

1. Should I run another credit report BEFORE i get a job?

2. Is an eviction included in your credit report? (as I've said i've made A LOT of mistakes and I'm working on fixing it)

3. My mother is currently doing debt consolidation, would that be my best way to go to get my credit cleaned up?

4. If I go the route of debt consolidation, how to I go about finding a good one? My mother uses Wisconsin Debt Helpers...to me the guy who works there seems a little sketchy

5. How long after I've paid off a company does it show up on the report? say i have a bill in collections and I manage to pay it, will my credit report reflect that the debt was paid?

In the past 2 years I have not incurred anymore debt. Somehow, by the skin of my back, I qualified for a cell phone (2year contract that the company let me out of just over a year in but I'm still with the company month to month) so I'm assuming since I've been paying that on time that it reflects positive on my credit...I pay my car insurance on time every month (owned the car over 3 years) and my storage unit fee (not sure that gets reported to credit or not since it's a family run business here in our very small town). I'm just worried because I know I have some large bills out there but right now I"m living on basically child support. my family helps where they can but as i said my mother is in consolidation as well..my daughter also receives SSI but that's HER money and I only use that appropriately. These are my bills and I know I'm responsible for them. Does anyone have any other advice or tips for me to get back on the right track? thanks for listening to me!

I'll try to answer some questions:

1. Definitely run a report now, you can run 1 from each of the 3 major credit bureaus each year. Run one every 4 months from a different company in order to keep an eye on your activity.
2. Eviction-not sure, but my gut is saying that it won't be. There's no credit involved.
3. Debt consolidation-I don't believe it would benefit you at this point. Many have been "written off" and have been dormant for approximately 2 years. If you put them in a consolidation program and re-activate the accounts, that will reset the clock on the accounts. Accounts that have aged 2 years will suddenly become active accounts that are currently negative. If your mom's guy seems sketchy, there's probably good reason for your feelings. Get her to CCCS, they are one of the few reputable ones around.
4. Paying collections-they will show as paid as soon as the company reports it...IF they report it. However, unless you get them to delete the account entirely, the previous history where payments were late/missed will still remain on your credit file.
5. Your cell, insurance and storage fees will not be on your credit report.

What I've posted above probably sounds very discouraging, and that is not my intent. I think you should pay your bills as you are able to. However, there are ways to do this and to improve your score simultaneously. If you go to www.creditboards.com and spend some quality time researching their boards. They are a wealth of information and help. They have letters that you can modify to fit your situation. You may be able to negotiate with your creditors to delete the records if you pay the bill in full. Or, you may be able to get them to report differently by simply sending a goodwill letter. Check the site out, read lots and ask questions....they will set you on the right path.

Good luck!

 

[mrsklamc]

I would think about whether I really needwhatever is in storage.

 

[sbpebbles]

I would think about whether I really needwhatever is in storage.

I have been purging a lot of the stuff in there but it's items for when I move, which I'm hoping to do as well in the next few months..the storage fee is $35 and once the snow is light enough I'm going over there to see what else I can possibly sell to maybe I can put it in a smaller unit for less money

 

[csharpwv]

THE one most important thing to do is DEAL WITH YOUR BILLS IN ACTIVE COLLECTIONS.

And by deal with I mean get in - and stay in contact with them. You need to be as sweet as sugar to them. You need to make it totally clear that you have every intention of paying off your debt. Let them know that while you may have been - or may be behind, it isn't without stress on you - and you do indeed care that you owe them money and you will make every good faith effort humanly possible to pay off every dime of debt.

Negotiate you interest rates. If your debts are mounting thanks to high interest rates - ASK for a lower rate. It is in the company's best interest to lower your interest rate - even if just for a year or two - because that will enable you to pay off your debt a little faster.

Consider consolidating credit card debt - loan debt - and any other debt that can be combined into a low interest loan or credit account.

Bankruptcy is on your record for 7 years - most debt follows the same line.

DO get accounts that were written off removed from your record by closing the accounts.

My parents saved for my brothers and I to go to college from the very beginning - so I was SO lucky and blessed to graduate from college debt free on all accounts. My wife and I have worked very hard to keep our finances in order. I'm not saying that to wave it in front of you OP - I'm saying that financial fitness takes planning, careful judgment, and a certain degree of discipline.

With that being said - KUDOS to you for pulling yourself up by your bootstraps. Keep up the good work and I for one am proud that you not only recognize your mistakes, but you are willing to step up to the plate and take responsibility for your mistakes, your debts - and your past.

Keep up the good work - you'll get there. Like anything in life work having - it's worth working for.

I would suggest contacting a local college and ask if there is a senior Finance major that might be able to sit down with you and work out a plan to put yourself back on the road to fiscal and mental stability. It's great experience for them - and it might give you a few ideas about how many way there are to mange your finances.

It's not easy - and we all make mistakes!

 

[figment3258]

The way we have paid off our debt is by debt snowballing. You take all your bills and place them from the smallest amount t the biggest. You still pay for all the minimum amounts on all the debt but you pay off the smallest first. Next say your minimum amount on the first bill was 10$ you add 10$ to the next minimum amount and thats what you pay every month and pretty soon you are paying off you top amount. Good luck it's not easy but once you have paid off a lot of you debt it takes so much stress off. Out of our 15 credit cards we have 4 left

 

[sbpebbles]

THE one most important thing to do is DEAL WITH YOUR BILLS IN ACTIVE COLLECTIONS.

And by deal with I mean get in - and stay in contact with them. You need to be as sweet as sugar to them. You need to make it totally clear that you have every intention of paying off your debt. Let them know that while you may have been - or may be behind, it isn't without stress on you - and you do indeed care that you owe them money and you will make every good faith effort humanly possible to pay off every dime of debt.

Negotiate you interest rates. If your debts are mounting thanks to high interest rates - ASK for a lower rate. It is in the company's best interest to lower your interest rate - even if just for a year or two - because that will enable you to pay off your debt a little faster.

Consider consolidating credit card debt - loan debt - and any other debt that can be combined into a low interest loan or credit account.

Bankruptcy is on your record for 7 years - most debt follows the same line.

DO get accounts that were written off removed from your record by closing the accounts.

My parents saved for my brothers and I to go to college from the very beginning - so I was SO lucky and blessed to graduate from college debt free on all accounts. My wife and I have worked very hard to keep our finances in order. I'm not saying that to wave it in front of you OP - I'm saying that financial fitness takes planning, careful judgment, and a certain degree of discipline.

With that being said - KUDOS to you for pulling yourself up by your bootstraps. Keep up the good work and I for one am proud that you not only recognize your mistakes, but you are willing to step up to the plate and take responsibility for your mistakes, your debts - and your past.

Keep up the good work - you'll get there. Like anything in life work having - it's worth working for.

I would suggest contacting a local college and ask if there is a senior Finance major that might be able to sit down with you and work out a plan to put yourself back on the road to fiscal and mental stability. It's great experience for them - and it might give you a few ideas about how many way there are to mange your finances.

It's not easy - and we all make mistakes!

The ONLY credit card debt I have was an old Victoria's Secret Card, that's been almost 10 years now, it shows WRITTEN OFF on my credit report-I didn't realize I could have that removed..I called the company about it but since i didnt have an active account they couldn't talk to me.

The kind of debt I have is old electric bills, bills from a counseler I had to go see that was SUPPOSE To be covered under insurance but after several sessions they decided it was preexisting condition situation and refused to pay that's about 4 years old, a few old medical bills from about 4 years ago, old cell phone bills from 8+ years ago, one bill that is my daughter's father's responsbility (i've fought tooth and nail on this one cuz she didnt live with me during this time but they are still making ME pay the bill) from 5 years ago and i just found out about a property management coming after me for 2 months rent from 2 years ago..I have those types of debt, so I can't negotiate interest rates but maybe they will take a settlement?

So if i run my credit report and see items that are WRITTEN OFF I can have them removed?

Thanks for the tip about the Senior Finance major, I don't live near any 4 year colleges but I'll call the tech schools and see what they say for referrals..

I know I'm in WAY over my head and once I get a job I'm gonna pay more but right now I have to be able to provide for my kids. Whenever collectors call I do explain that I'm trying the best I can and I have every intention on paying the debt, I just need more time..i'm sure they hear that all the time but it's true..I dread to know my credit score..I know I won't qualify for anything anytime soon...

Another question-I'm looking at the old copy of my credit report and i see this: Account Closed at Consumers Request:Charged off account...what does that mean? example I have an old acct with verizon and it says charge off as of Sep 2008 but that it's schedule to remain on the record until 2014..do i still have to pay this debt?

I've gone as far as calling the collection agencies so they know I'm trying to work on getting them at least SOME money..I don't want to look like I'm ignoring them, well other than the one that DD's father owes but that's another story lol...

Thanks for the help..keep it coming!

 

[minnie1928]

Also to add, do all your communications with the collectors IN WRITING. Do not send them personal checks or give them your checking account information. Send them money orders or cashiers checks. Some (many) collection agents can be very scummy, protect yourself first and be cautious.

 

[minnie1928]

The ONLY credit card debt I have was an old Victoria's Secret Card, that's been almost 10 years now, it shows WRITTEN OFF on my credit report-I didn't realize I could have that removed..I called the company about it but since i didnt have an active account they couldn't talk to me.

So if i run my credit report and see items that are WRITTEN OFF I can have them removed?

I know I'm in WAY over my head and once I get a job I'm gonna pay more but right now I have to be able to provide for my kids. Whenever collectors call I do explain that I'm trying the best I can and I have every intention on paying the debt, I just need more time..i'm sure they hear that all the time but it's true..I dread to know my credit score..I know I won't qualify for anything anytime soon...

Another question-I'm looking at the old copy of my credit report and i see this: Account Closed at Consumers Request:Charged off account...what does that mean?

I've gone as far as calling the collection agencies so they know I'm trying to work on getting them at least SOME money..I don't want to look like I'm ignoring them, well other than the one that DD's father owes but that's another story lol...

Thanks for the help..keep it coming!

When you pull your report and you see negative accounts listed, you can officially dispute the account through the Credit Bureau. Disputes can be done for several reasons (some which may apply to you...you'll have to look) and if the company can't support what they've reported then they have to remove the negative mark.

Account Closed at Consumer's Request sounds like you asked for the card to be closed, even though you had a balance. The balance was later written off.

 

[sbpebbles]

When you pull your report and you see negative accounts listed, you can officially dispute the account through the Credit Bureau. Disputes can be done for several reasons (some which may apply to you...you'll have to look) and if the company can't support what they've reported then they have to remove the negative mark.

Account Closed at Consumer's Request sounds like you asked for the card to be closed, even though you had a balance. The balance was later written off.[/QUOTE]


the debts that it says this for are not credit cards..I've only had 2 credit cards in my whole life and one I was taken to court and have settled and paid off and the other one may be in collections, it's from 2001 and on the report i did in 09 it jus says account transferred or sold so idk

 

[minnie1928]

When you pull your report and you see negative accounts listed, you can officially dispute the account through the Credit Bureau. Disputes can be done for several reasons (some which may apply to you...you'll have to look) and if the company can't support what they've reported then they have to remove the negative mark.

Account Closed at Consumer's Request sounds like you asked for the card to be closed, even though you had a balance. The balance was later written off.[/QUOTE]


the debts that it says this for are not credit cards..I've only had 2 credit cards in my whole life and one I was taken to court and have settled and paid off and the other one may be in collections, it's from 2001 and on the report i did in 09 it jus says account transferred or sold so idk

If you have accounts that were sold/transferred then you may see it several times on your report under different names.

 

[minnie1928]

I sent you a pm.

 

[Nicolepa]

I'll try to answer some questions:

2. Eviction-not sure, but my gut is saying that it won't be. There's no credit involved.

Good luck!

The eviction could be on your credit report. My former SIL was evicted from her last place. She tried to move and the new apartment wouldn't lease to her because she hadn't taken care of the $$ from the apt she was evicted from.

 

[sbpebbles]

ok so I guess I should start at square one and get copies of my credit report..Should I paid the extra and get my credit score as well or no? where's the best place to get the reports from? last time i think i went to freecreditreport dot com

 

[savvywifey]

annualcreditreport dot com (wont let me post links). lets you check your credit one time a year per credit bureau. you should check every 4 months for free. you have to pay to get your credit score, dont even bother. just make sure there is no wrong info on the credit report.

 

[sbpebbles]

annualcreditreport dot com (wont let me post links). lets you check your credit one time a year per credit bureau. you should check every 4 months for free. you have to pay to get your credit score, dont even bother. just make sure there is no wrong info on the credit report.

how are you able to check every 4 months for free but only allowed to check one time per year per bureau? Do you just get one bureau at a time then? or am i missing something? sorry i'm starting to get tired and very confused by all this debt information

 

[Kathi OD]

how are you able to check every 4 months for free but only allowed to check one time per year per bureau? Do you just get one bureau at a time then? or am i missing something? sorry i'm starting to get tired and very confused by all this debt information

Yes. A different bureau every 4 months. At the end of the year you will have checked your credit report 3 times altogether (once from each bureau).

 

[smokeyblue]

The ONLY credit card debt I have was an old Victoria's Secret Card, that's been almost 10 years now, it shows WRITTEN OFF on my credit report-I didn't realize I could have that removed..I called the company about it but since i didnt have an active account they couldn't talk to me.

The kind of debt I have is old electric bills, bills from a counseler I had to go see that was SUPPOSE To be covered under insurance but after several sessions they decided it was preexisting condition situation and refused to pay that's about 4 years old, a few old medical bills from about 4 years ago, old cell phone bills from 8+ years ago, one bill that is my daughter's father's responsbility (i've fought tooth and nail on this one cuz she didnt live with me during this time but they are still making ME pay the bill) from 5 years ago and i just found out about a property management coming after me for 2 months rent from 2 years ago..I have those types of debt, so I can't negotiate interest rates but maybe they will take a settlement?

So if i run my credit report and see items that are WRITTEN OFF I can have them removed?

Thanks for the tip about the Senior Finance major, I don't live near any 4 year colleges but I'll call the tech schools and see what they say for referrals..

I know I'm in WAY over my head and once I get a job I'm gonna pay more but right now I have to be able to provide for my kids. Whenever collectors call I do explain that I'm trying the best I can and I have every intention on paying the debt, I just need more time..i'm sure they hear that all the time but it's true..I dread to know my credit score..I know I won't qualify for anything anytime soon...

Another question-I'm looking at the old copy of my credit report and i see this: Account Closed at Consumers Request:Charged off account...what does that mean? example I have an old acct with verizon and it says charge off as of Sep 2008 but that it's schedule to remain on the record until 2014..do i still have to pay this debt?

I've gone as far as calling the collection agencies so they know I'm trying to work on getting them at least SOME money..I don't want to look like I'm ignoring them, well other than the one that DD's father owes but that's another story lol...

Thanks for the help..keep it coming!

I've been in a similar boat. You need to stop playing the blame game. I too had good reason why I thought my debt wasn't mine to pay. In order to move forward I had to suck it up and just pay those items.

Your issues seem much more complex than what anyone on this board can help you with. You need credit counseling. I used American Consumer Credit Counseling http://www.consumercredit.com/. Another reputable organization is Greenpath http://www.greenpath.com/. ACCC can do the counseling over the phone. Have all your financial information ready and even do a little budget before you call. They are very honest with you, but not judgemental. Their solution was not a workable one for me, but it gave me a lot to think about.

Good luck to you. Like I said, stop the blame game including blaming yourself. Just get it done.

BTW "Charge Off" basically means that you paid a settlement instead of the entire amount owed. You voluntarily closed the account by doing the charge-off. It will show on your credit report for 7 years. The account was probably due in 2007 making it due to be removed from your report in 2014.

 

[ctinct]

THE one most important thing to do is DEAL WITH YOUR BILLS IN ACTIVE COLLECTIONS.

And by deal with I mean get in - and stay in contact with them. You need to be as sweet as sugar to them. You need to make it totally clear that you have every intention of paying off your debt. Let them know that while you may have been - or may be behind, it isn't without stress on you - and you do indeed care that you owe them money and you will make every good faith effort humanly possible to pay off every dime of debt.

Negotiate you interest rates. If your debts are mounting thanks to high interest rates - ASK for a lower rate. It is in the company's best interest to lower your interest rate - even if just for a year or two - because that will enable you to pay off your debt a little faster.

Consider consolidating credit card debt - loan debt - and any other debt that can be combined into a low interest loan or credit account.

Bankruptcy is on your record for 7 years - most debt follows the same line.

DO get accounts that were written off removed from your record by closing the accounts.
My parents saved for my brothers and I to go to college from the very beginning - so I was SO lucky and blessed to graduate from college debt free on all accounts. My wife and I have worked very hard to keep our finances in order. I'm not saying that to wave it in front of you OP - I'm saying that financial fitness takes planning, careful judgment, and a certain degree of discipline.

With that being said - KUDOS to you for pulling yourself up by your bootstraps. Keep up the good work and I for one am proud that you not only recognize your mistakes, but you are willing to step up to the plate and take responsibility for your mistakes, your debts - and your past.

Keep up the good work - you'll get there. Like anything in life work having - it's worth working for.

I would suggest contacting a local college and ask if there is a senior Finance major that might be able to sit down with you and work out a plan to put yourself back on the road to fiscal and mental stability. It's great experience for them - and it might give you a few ideas about how many way there are to mange your finances.

It's not easy - and we all make mistakes!

Good advice here, but the bolded part is mistaken. Otherwise, people would just close all their accounts to remove negative info. It doesn't work like that.

You can possibly get some stuff removed, particularly in your case your ex's bill. You need to dispute it IN WRITING, with all the credit bureaus it is on. Don't go into long explanations. Just tell them it is not yours. The company who is holding the debt will have to give proof to the credit bureaus that it is yours. If they cannot, it should be removed. If they say it is yours, then you can start with your proof that it isn't. Do not dispute any of this online,
and keep copies of everything.

If you are able to negotiate a reduction in late fees, get it in writing. Ask everyone who is calling for a physical address. Send them a letter telling them they need to communicate with you in writing ONLY. Keep copies of the letter.

There are a lot of different laws pertaining to medical debt, but I don't know much about them. HIPPA privacy laws and such. You may want to look into them.

As for the accounts that are written off, the only way to get them off your credit report is to let them age off or find an inaccuracy in them and dispute them. "Written off" means the company does not expect they will ever see any money from you; however, these debts will probably be sold to other debt collectors for pennies on the dollar, and these secondary debt collectors can be quite unscrupulous.

Good luck.

ETA: Use annual creditreport, not freecreditreport. They will need to ask you some identifying questions, so don't worry when they do, but if you are ever asked for a credit or debit #, it's the wrong site. The questions might be something like a list of 4 addresses, and you might have to click the one you have not lived at.

 

[eliza61]

ok so I guess I should start at square one and get copies of my credit report..Should I paid the extra and get my credit score as well or no? where's the best place to get the reports from? last time i think i went to freecreditreport dot com

Don't stress about your fico score right now. It's shot. concentrate on paying up the bills and the job hunt.

Good luck. I've made gigantic money mistakes also.