December 29,2008

• Make 2009 Your Year of Stout Credit, Pt.4 –
   – In the thick of it.

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  Once you have your credit report in hand look for damaging inaccuracies. Attend those first. If you're only concerned about credit cards, there may areas you don't need to address. Then look for disputes where you disagree with the outcome. These typically arise when collection agencies are involved. Like bounty hunters, the purpose of these agencies is to collect from you by whatever means. If you dispute items directly with a credit bureau (vs. collections) you will generally get a response within 30 days. The bureau will work with the agency filing the complaint and attempt to resolve inaccuracies. Credit card defaults may be difficult to lose but, you should call the Credit card lender anyway. Ask for a supervisor. If the filing isn't too old, perhaps something can be done.

  In cases like exorbitant medical bills, you may be able to call the ‘plaintiff' who issued the ‘derogitory' and negotiate a partial waiver and reasonable payment plan. Make sure the ‘derogators' agree to withdraw their charge in your credit report when you either paying off or, preferably, after successfully proving your worthiness that you will pay. Once a credit card account is closed, however, your options become limited.

  Often, when high penalties of interest are involved (especially with credit cards), you can call the lender and negotiate to have penalties removed and interest rates lowered on a one-time-grace basis. You may have to insist on reaching a supervisor to obtain this but, don't give up too easily. Nearly all of them have more levity than they will admit. It is said that secured debt, such as a car loans or mortgages, are even easier to work with.

  Lastly, don't be dissuaded by all the hustles out there. There are many good credit counselors out there, as well. Most of them will work with you and adjust their fees by your ability to pay. Much of the counseling is free and the services are usually reasonable. Nonprofit groups abound and be found on the web. They cover such areas as credit card debt, mortgage debt, financial counseling and even budgeting. There are no requirements to get counseling and you can pick from many choices found at URLs "Association of Independent Consumer Credit Counseling Agencies" or "National Foundation for Credit Counseling". These councilors will be qualified and certified.

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