Free Credit Report Repair Guide

What the heck is Zombie debt?

I found this nice article on MSN money. A friend of mine came over the other day and asked me about a letter they had received about a debt that was over 7 years old. The letter said the company would give a visa card to my friend for the amount of the debt owed over 7 years ago. If my friend paid it off then they would clear up her credit. Sounded a lot like what Liz Pulliam is talking about.

There’s money in old debt decade ago, most people who reneged on debts could rest easy after several years passed, since few creditors tried to collect on old bills, particularly for small amounts.Today, however, collecting on old debts is a rapidly expanding industry. Aggressive companies can buy charged-off credit card accounts from the original lenders for pennies on the dollar. Then, they use credit scoring and other new technologies to identify which debtors are most likely to pay. The players in this “junk debt” market range from fly-by-night outfits to well-established companies funded by Wall Street investors.

Zombie debt collectors dig up your old mistakes - MSN Money

Last year, more than $75 billion in old debts were sold. So I think we may be seeing the start of a new industry which is not rooted in law, so be very careful.

technorati tags:credit repair, zombie debt, collection, junk debt

Be very careful when looking at Credit Repair Companies

“For a fee, they promise to clean up your credit report so you can obtain a car loan, a home mortgage or even get a job. Unfortunately, many of these companies can’t deliver. After paying these companies hundreds or even thousands of dollars in upfront fees, these companies do nothing to improve your credit report; many simply vanish with your money…”

The only thing that really will change your credit report is time and acurate disputing of inaccurate negative marks on your report.

“The truth is, no one can legally remove accurate
and timely negative information from a credit report. But the law does
allow you to request a reinvestigation of information in your file that
you dispute as inaccurate or incomplete. There is no charge for this.
Everything a credit repair clinic can do for you legally, you can do
for yourself at little or no cost...

Advise you to dispute all information in your
credit report or take any action that seems illegal, such as creating a
new credit identity by obtaining a federal employer identification
number to use instead of a Social Security number. If you follow
illegal advice and commit fraud, you may be subject to prosecution.It’s
a federal crime to make false statements on a loan or credit
application, to misrepresent your Social Security number or to obtain
an employer identification number from the Internal Revenue Service
under false pretenses.”

The Daily Advertiser - www.theadvertiser.com - Lafayette, LA

You can always get a free copy of your credit report from www.annualcreditreport. com and please be very careful of any company asking you to do anything illegal. Breaking Federal Law is not worth it.

technorati tags:Credit, Repair, Free, CreditReport

Oprah is running a “Debt Diet” show today and yesterday. Sorry for the late notice. I work during the day but did watch the previews online. She also has a section where you can go and get help fighting your debt, click here for more details.

She breaks the process down into two parts.

Part 1
How much debt do you really have?
Track spending
Stop Spending

Part 2
Make a budget
Grow your Income
Prioritize your debts
Understand spending issues

I hope Dave Ramsey is getting paid because this is his exact step by step plan for dealing with debt.

I am really believe in the Ramsey school of thought so I am glad that Oprah is using her massive public reach to help others learn to crush your debt.

Living with debt is horrible, so any help or motivation to change your situation is welcomed.

technorati tags:Oprah, Debt, Reduction, debt, diet, Dave, Ramsey

Yahoo! News reports Money does not buy happiness.

See Yahoo news here

This time old adage is true but not. Let me explain. Simply having money will not make you happy. Look at the super wealthy and you will find they suffer depression, suicide and addiction at the same rate as the rest of the general public. Money can not buy you happiness.

But when you have money you have choices and choices can make you happy. For example, when you have money you can decide which fancy restaurant to take your family to every night, versus making the choice at the grocery store if you can afford to buy meat for your family or will it be pasta again.

The number one cause of divorce is related to money, particularly not having any and bills.  Again when you have money this becomes less of an issue. Your fights will revolve around how many luxury cars you can afford, or how lavish your next vacation will be. When you don’t have money your fights tend to be about which bills won’t get paid.

In the end living a balanced life, filled with friends, family and with limited stress is as close as we can get to a recipe for a happy life.