The law prevents harassment by a debt collector. It is harassment if they call you at work?
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Posted In: Collections, debt collection
In Tip 10, I discuss how to start watching your finances and why it is important to pay attention to your money.
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Tip 10 video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you are going through a divorce, your thoughts are probably not focused on what your credit score looks like. However, this is exactly the time to think about these issues!
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during this tough time. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Introduction video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The statute of limitations for your state determines how long you can be sued for a debt. However, if you treat your debt wrong, the state of limitations can be reset and the clock starts over.
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you have filed for bankruptcy, you are going to have to repair your credit.
The question becomes when do you start? My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd. You can also see my blog entry on this subject by clicking here.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The debt collector can get a lot of information about you. However, do they have the right to see your bank records?
My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Recently, I have been getting a bunch of questions about credit, debt, foreclosure, bankruptcy, and other topics about credit.
The first couple of entries are already on YouTube, and you can see them here: httpv://www.youtube.com/user/MyCredEd
It can take a long time to write a blog entry, and I just don’t always have the time. So, I decided to go ahead and release some videos that answer the questions.
Here is how this works:
See the form to the right? You ask your question there. Just type in what you want to know, and I will work on answering it. Now, I can’t guarantee that I will answer every question, but I will do my best.
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
I am working hard to grow this blog, and I want to grow it in a way that helps you. So, please ask your questions!
Again, you can find the videos on YouTube right here:
http://www.youtube.com/user/MyCredEd
You may have heard of ‘junk’ categories before.
You can find junk bonds, junk dealers, and junker cars. The term means the same thing: an item of low or poor value.
Well, now we have junk debt. Junk debt is debt that is either uncollectible through ‘normal’ means, or debt of very low value.
I’ll give you an example:
I got a letter 2 days ago from a law firm. They claim I owe $40.00 from a parking ticket 7 years ago.
Think about it. They paid about a buck to send the letter. They probably bought the debt for about $8.00. So, they stand to make about $30.00 if they can collect the whole thing.
But they have 2 problems. First, the statute of limitations in my state is 6 years. So they can’t sue me. Second, they will have to prove it is mine, and that I didn’t pay it. Both of these are tough to get past if you know how to deal with the debt collector.
Low margins. Old debt. No legal recourse. Seriously, this is junk.
So why do they buy it? Well, many people look at these old accounts, and settle for much less. A $20.00 payment is a huge profit for the collector, and costs less than the movie you buy when you are checking out of Wal Mart.
That one happened to be cheap. But how about bigger ticket items?
Utility companies, library fines, parking tickets, local taxes – all these things are being sold as junk debt. Many of the accounts are decades old, and they are virtually un-provable. The firms that buy these accounts have a hard time collecting, but almost all of what they collect is profit. Many people just go ahead and pay when they get the bill, just so it ‘won’t show up on their credit report’.
Why do I care? These debts can be reported to the credit bureaus. If the old debt is reported, it will affect your credit scores negatively. As someone who is concerned about credit, you need to avoid this at all costs.
If you are notified you owe an old debt, you need to contest the debt. Make sure the debt is actually yours, and don’t settle with what the collection company tells you.
Remember, these can end up on your credit report, but usually they are so old they can’t stick. You can get them cleaned up, and get rid of them, with out paying, but you need to understand how to clean those credit reports up. Make sure you do the research and understand how to fix the problem. Or, just read my book!
Posted In: junk debt
When you are going through a divorce, your finances can get a bit confusing. ‘What money is mine’? ‘What do I have to pay’? ‘What do I do next’?
When I was getting divorced, I never really considered the ‘me’ part of the equation. I was worried about the joint accounts, joint credit, and joint kids, but I didn’t take any time to consider what I was doing to myself financially. I ended up making a BUNCH of mistakes, which I sincerely hope you can avoid. Most of my mistakes revolved around the management of credit, but I also made mistakes regarding WHEN to get credit.
Let me give you a couple of key things to think about:
1) A fairly hefty part of your credit scores, about 10%, revolves around HOW LONG you have had your accounts open. A new account has less power than an older account.
2) When you get divorced, you may not be able to keep some of your credit cards, and you may have to sell or give up your stake in cars, houses, or other assets.
Therein lies the dilemma. If you end up getting rid of a credit card, as an example, that you have had for 5 years, you may take a hit on your credit scores. Your house that you have been paying on for 10 years may go away. In other words, the AGE of your credit may be reduced.
There are a few simple things you can do to fix that. First, call your creditors and ask them if they will issue you a new card. This will start the clock over before you have to give up your old cards. You will still take a hit, but a six month head start can really help.
Second, go ahead and take care of yourself. If you will be losing your car, get another one. You can rent or buy a new house. Just remember that you will be qualifying WITHOUT your spouses’ income, so make sure you overextend.
The simple point here is that you can open credit for yourself AT ANY TIME, as long as you qualify for it. That can happen before your divorce, while happily married, or any time after the divorce. You have to be able to make payments, but if you qualify the credit can be yours.
A final note: If you have filed for divorce, or even separation, and you use your spouses’ information on the application as a co-borrower, you are likely to get in trouble with the courts. You aren’t sharing that money any more, so use what you make and don’t risk the pusishment that may come your way.
If you are going through a divorce, you really need to read my FREE e-Book ‘The Top 10 Ways To Save Your Credit During Divorce’. This book will guide you through some things you need to do to protect yourself as you go through this tough time. Just click the link above to get your free copy.
