Bad credit can be very stressful. It often throws people into a tailspin, but there is hope. It is hard to pay old debt when new debt is steadily accumulating. So what do you do?
There is a strategy that can be applied. There truly is a method to the madness! Really…
The first thing you want to do is set up an account online with creditkarma.com. This service actually allows you to check your credit whenever you want without affecting your credit score. It also allows you to dispute discrepancies online.
After this is done, you want to contact all of your creditors to negotiate a payment for delete relationship. You want as many creditors as possible to agree to delete the item from your credit report if you make a payment. You want to try to negotiate a payment that is less than the full amount but if that is not possible then an agreement to delete for payment in full will suffice.
You want the delete for payment in writing so that there is no confusion. This is very important because they may not delete it unless you have it in writing. Also, there have been situations where an item has been deleted from the credit report and has reappeared in the future. If you have a written letter, you can simply have it removed again with no problem.
Most importantly and this is very important. If your account has already been turned over to a collection agency, you do not want to negotiate with the collection agency. They do not have the authority to delete a record from your credit report. It is imperative that you contact the creditor directly.
If the creditor does not want to delete the record, it is up to you to decide whether to pay it or not. If it is going to remain on your credit report it may not be worth it to make the payment. If you decide to pay anyway because it makes you feel better… that’s great… but it may not make a big difference in your credit score.
Debt can be overwhelming when there is more debt than money. This can be remedied by paying off the smallest debts first then gradually working up to the largest debt. Psychologically, this will make you feel as if you are making some progress right from the beginning. There may be some creditors that require you to submit in writing.
Remember that lots of people have credit that is probably worse than yours. I know that may seem impossible… but it’s true. You can repair your own credit and you can do it for a lot less if you do it yourself.