Money Matters!

Step One: Pay off Debt

Contact a Consumer Credit Counseling Service. A Consumer Credit Counseling Service will provide debt management to help you learn how to manage your debt. Most likely your financial problems will stem from too much debt or your inability to repay your debts, therefore, a Consumer Credit Counseling Service will review your finances and create an individual spending plan, or budget, and offer you advice on managing your money. A Consumer Credit Counseling Service can also act as mediator between you and your creditors, and works with you so you can eventually, pay off all your debts. This process may take some time to complete, because the Consumer Credit Counseling Service counselors will usually not recommend bankruptcy, but, if you are at your wits end, this could be your solution. The process time will depend on how much debt you have, and what you can afford to pay monthly, without leaving you broke or unable to live. Although, there is a fee associated with the Consumer Credit Counseling, it can vary from State to State.

There are many Consumer Credit Counseling Services on-line, like Clear Point Consumer Credit Counseling Service, www.repaydebt.org/CCCS; American Consumer Credit Counseling Service, www.consumercredit.com, and Money Management, www.moneymanagement.org .

Also, for more information contact the Consumer Credit Counseling Service in your city and State. And, if the Consumer Credit Counseling Service is unable to help you, don’t give up, go to a financial advisor. If you don’t know of any, ask the counselor at the Consumer Credit Counseling Service, or contact your bank or credit union.

(Note: If you are considered for a loan of any kind, ask about the life, disability and unemployment insurance, and whenever you can afford it, include it on all credit cards, loans, etc. These insurances can really be a life saver, for instance, in an unexpected medical situation or an untimely death. It will either pay your monthly payment during a medical situation or will pay the credit cards or loans in full, which will give you and your family a since of relief.)

Step Two: Reestablish Your Credit

After you have successfully completed all the sessions with a Consumer Credit Counseling Service, you will then need to reestablish your credit. Contact your bank or credit union to set up an appointment to see the Loan Officer there, and at your appointment, inform the Loan Officer that you want to reestablish your credit. Depending on the bank or credit union’s policy, the Loan Officer should pull up your credit report, and he/she should go over your credit report with you, to determine what type of credit history you have, and advise you, how to go about reestablishing your credit.

Based on Yahoo answers:

For more information on receiving Free Annual Credit Reports, call 1 (877-322-8228; for disputes on any items on your credit report, call 1 (800) 916-8800; and for the Fraud Victim Assistance Department, call 1 (800) 680-7289.

The 3 Credit Bureaus:

Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; 1 (800) 685-1111 – (Score Range: 300-850). Internet: www.equifax.com.

Experian (formerly TRW), P.O. Box 9595, Allen, TX 75013-9595, 1 (888)-397-3742 – (Score Range: 360-840). I nternet: www.experian.com.

Trans Union, P.O. Box 1000, Chester, PA 19022, 1 (800) 888-4213- (Score Range: 336-843). Internet: www.transunion.com.

(Note: If you have been denied credit, insurance and employment because of a consumer reporting Agency, contact, the agency for a copy of your report within 60 days of receiving a denial notice, and your credit report will be free. Reading a credit report is challenging, and given all the abbreviations and jargon, you should ask the lender what specific information on the report led to the denial of credit.)

Step Three: Know Your Credit Score

In evaluating an application for a home mortgage loan, home equity loan or line of credit, credit scores are provided by one or more of the nationwide consumer reporting agencies – commonly called credit bureaus. (See Step 2, for credit score ranges).

(Note: The disclosure of your credit score, that a credit bureau distributes, is required by, and the score used in considering your application.)

Step Four: Congratulations, you are Now Debt Free

After reestabling your credit, you are now able to get credit, but, you will find that you will have to start out with a minimum credit limit (this is done to help in reestabling your credit). After you have shown good faith in using the minimum credit limit, your limit could be extended.

(Note: Start off with no more than a $500.00 credit limit, and make all payments in full each month. This may help to increase your limit.)

Step Five: Stop! Don’t Cash that Check

Now that you are debt free, you may start to get loan checks in the mail, but Don’t Do It , or you’ll be back to Step One.

Written by: Kathleen Watts