Sister of Mercy's World

Got Debt? pt3

Sunday, July 3rd 2011


Continuing with the Got Debt? series, I'm going to discuss how to handle creditors and bill collectors and how to repair your credit.

1. Answer their calls. The bills will not go away and neither will they.
2. Instead of just saying that you can't pay anything, try offering to pay something even if it's only a few dollars a month. They will usually take it as a sign that you're trying to work with them and not trying to welch on your obligation.
3. If one customer rep won't work with you, then hang up and call back. You will always end up speaking to someone else, and that person may work with you. You can always ask to speak to a supervisor too.


Here are some things you need to know.

1. If you tell them not to call you at work, they have to honor your request.
2. You can also write to them and tell them to only contact you in writing instead of calling you at home. They have to honor this.
3. They can not call you before 8 in the morning or after 9 at night.
4. Depending on what state you live in, if the bill in question is over 3-7 years old, they can not legally collect on it anymore. Check your state law to see how many years it is. In Mississippi, it's 4 years. Sometimes collectors known as zombie companies will try to collect on these. Just hang up on these individuals because they are just trying to scam you. Also bear in mind, these are bills that you have not made a payment on in this time frame.


How to repair your credit.

1. Check all three credit reports for mistakes first. The reports come from Equifax, Experian, and Transunion.
2. Then check for entries over seven years old. Anything over seven years old has to be removed. The exception is bankruptcy. It is removed after ten years.
3. Pay your bills on time.
4. Do not close any accounts. If you do, it will make your debt to credit ratio higher.
5. Other than that, it just takes time. Don't bother paying credit repair companies to repair your credit. You can do what they do.


In Got Debt pt4, I will discuss mortgages.


Sister of Mercy