Bad credit repair requires STRATEGY before you throw even one penny at some debt collector who’s harassing, screaming, berating & threatening you!
Felicia wants to make right by her debts!
But she doesn’t know where to start.
Before you ever consider throwing a penny at a debt collector, check out this powerful 3-minute video:
Felicia’s question is the same question I receive (what seems like) 100s of times a day.
Click READ MORE below now before you offer money to a debt collector
BEWARE DEBT COLLECTORS ASKING FOR MONEY….
What follows is Felicia’s question to me…. Naturally, I have removed her email and ip address to protect her privacy.
Felicia wrote:
HI Mike I am in the process of trying to repair my credit and I am paying off debts that are owed. I just got your report regarding how paying off debts won’t help my credit score. I am beginning to become confused. I am depressed and tired. I just want some help. Please respond. Thank You
I understand Felicia’s frustration.
I hear it from people every day…in emails and on the phone. I too went through it when I got slammed with ID Theft and could not turn to anyone for help.
I had to “learn on the job” and that flat-out sucks!
PLEASE pay attention on what I’m about to say. You might:
- Save your money from flushing it away;
- Avoid watching as your scores drop further;
- Minimize getting yourself sued in the process.
Hi Felicia!
Congratulations on wanting to improve your credit. Unfortunately, paying off past debt will not improve your credit. The only way you can improve your credit scores when paying off debts reported as bad is to negotiate favorable reporting in exchange for money.
But first, look at each account you’re considering paying off.
- Is each account reported 100% accurately on all 3 credit reports? Are you certain?
- Look at the Date of First Delinquency on your Equifax report. Is that the accurate date at which time you went delinquent (that is, you missed the payment)?
- Have you talked with any debt collector?
- Have you made any promise, either verbal or in writing, you’ll pay anything, even a penny? Debt collectors try to get you to agree to make a token payment so they can reset statute of limitations.
Who knows, these debts already might be outside your state’s SOL, which means they are time-barred and you’re home free. A zombie debt collector still could sue you, but you’d simply need to respond to the Summons with proof the debt is time barred (outside SOL). BTW, these debt collectors buy and sell “junk” debt for pennies. They use “tracer” software to track you down and autodialers to call you non-stop.
Here’s something else you need to know. Unless you get your negotiations in writing and signed by a principal of the company, one debt collector will agree to settle only to have that debt collector sell to another debt collector who starts the process over again.
In other instances, you negotiate settlement (or so you thought you negotiated settlement), pay them off but they return, demanding more money or else. On top of this horror, you discover you have (unintentionally of course) reset SOL.
They want more of your money AND your scores have tanked even more because that “older” debt is now showing current activity.
Now, I realize I’ve pumped a lot of information into your head. Please don’t get depressed & tired. Realize right now that STRATEGY determines your next move.
Credit improvement and credit repair require strategic approach.
You’re taking the first step…toward wanting something requiring this change.
As a start, grab my DVD 8 SECRETS TO A 680 CREDIT SCORE! When it comes to debt collectors, do not allow anyone (but you) to pull your credit. You (and only you) must review your reports before any other creditors (especially a mortgage lender) pulls your credit.
Ask me why if you don’t know. In my 15+ years helping people improve their credit and grab the keys to their new homes, I have seen 100s of credit reports. My DVD reflects the most common, costly & potentially dangerous credit mistakes I see people make…with credit repair and credit improvement.
Hope this helps you,
Mike
Bad credit repair is not about throwing your hard-earned money at a debt collector. Debt collectors KNOW their game better than you do. They know which buttons to push to squeeze money out of you. They know YOU don’t not know your rights. Therefore, they say and do whatever it takes to force you to pay. Before you pay off a debt collector, get informed first and then work your strategic plan as I discuss on my DVD, “8 Secrets To A 680 Credit Score!” @ Bad Credit Repair (click the “bad credit repair” link now).
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{ 2 comments… read them below or add one }
Wow! Some great advice there. Unfortunately, what seems logical to the average person is not what happens with the Credit Bureaus and certainly not with the Collection Agencies. Thanks for your wisdom and insights.
Thanks, Ken. Unfortunately, the bureaus and debt collectors know most people do not know any of this. Uninformed people are easy targets for intimidation, harassment & neglect.
Mike
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