Taking Stock of Your Life

Money comes and money goes. How do you spend your money? Organizing a budget does not have to be painful. Getting started can be challenging, but once underway you are likely to feel exhilarated. There is nothing like the feeling that comes from regaining control of your life. If you are starting a credit repair program, now is the time to implement a budget. It's easier than you think. Just take one step at a time and you will reach your goal before you know it.

Starting your Credit Repair Tune Up - Get Your Reports

A credit repair tune up does not have to be hard. If you break up the project into smaller tasks the whole job will be a breeze. Don't be intimidated. Take it slow and you will get the job done. Each little step along the way can add points to your credit score and move you closer to your credit repair goals.

Cease Communication Letters Cut Two Ways

Bob and Sue were reading about credit repair and the Fair Debt Collection Practices Act on the internet. They came across information about Cease Communication Letters which would force a collector to stop calling. So one day, after getting a call from an aggressive collector, Sue suggested they send a Cease Communication Letter. They sat down at the keyboard and gleefully wrote a note to the collector demanding that he cease communication. Bob even added some impressive language to convey his knowledge of the law. They went to the Post Office, mailed the letter, and went out to celebrate their credit repair victory. And then it all went bad.

The Need for Credit Repair

In 2003 congress passed an important amendment to the Fair Credit Reporting Act. The amendment, known as FACTA, required Equifax, Experian, and TransUnion to provide consumers with a free credit report, upon request, once every 12 months. This was meant to encourage consumers to examine their credit reports for errors. FACTA put a significant burden on the credit bureaus, and for good reason; 50% of all credit reports contain errors severe enough to cause consumers to pay premium interest rates on loans or even to be denied outright. This is a serious problem.

Getting the Collection Letter

Many people in credit repair programs have received collection letters. Sometimes the credit repair effort itself can attract a collector, but you can turn the situation to your advantage. Collection letters are designed to intimidate, and include enough threatening legal language to upset anyone. Many recipients of collection letters opt to ignore them. This is a mistake. You have an important right when contacted by a collector, but it only lasts for 30 days.