Resolving Accurate or Verifiable Collections
If you’ve already been through the process of having your credit report validated and/or corrected, you’re probably wondering what to do with everything on your report that disputing was, for whatever reason, unable to resolve.
And this brings up a good point: the majority of people mistakenly assume that disputing credit report information is all there is to credit repair. Unfortunately, nothing could be further from the truth.
In Repairing Credit: a Beginner’s Guide, part 2, I explained how disputing is intended solely for addressing credit report errors and other “questionable” information. And while the process may work great to resolve mistakes and such, you’ll probably have to find another way to resolve your other issues.
Collections, late-pays, charge-offs and other annoyances…
Dealing with negative credit report items realistically may be a bit more of a challenge than disputing, but it’s necessary if you’re serious about fixing your credit.
Whether you’re dealing with collections, late-pays or insurmountable debt, there are ways to make some improvements if you’re determined. So let’s take a look at some of the best ways to handle your credit problems…
Collections and Unpaid Debt
Collection accounts are one of the most common factors in low credit scores. It shows lenders (and anyone else who pulls your report) that you, at some point, were unable—or unwilling—to pay your bills.
• Collections are one of the most damaging marks to have on your credit report
• One collection alone can cost you up to sixty points
• It can take up to 15 years for the statute of limitations to totally expire the account
But nine times out of ten, it’s an unpaid debt that’s the root of any given credit problem. Collection accounts, obviously, are a prime example. And if you’re thinking that the only way to reduce or eliminate the damage caused by outstanding collections is to pay off the debt—then you’re absolutely right.
Until it’s paid (or until it expires under the statute of limitations), your credit’s going to bear the burden.
Of course, if you’re like most people, you’re probably thinking that getting out of debt would be impossible. And nobody knows what you’re capable of paying better than you. But regardless of how much you owe, a key to getting out of debt can be delivered in one fair strategy—negotiating a debt settlement.
Debt settlement: the best way to reduce and eliminate your unpaid bills
Obviously, if you’re dragging around thousands of dollars in debt, it’s not going to be easy to get it all paid. But what if you could have the debt reduced by as much as 60% or more?
That’s how tens-of-thousands of people are paying off their bills and getting their credit back on track. Sounds too easy to be true, but it makes more sense when you consider how your debts end up at a collection agency:
As you can see, negotiating a debt settlement can be easy, and it’s a realistic way to reduce your debts down to an amount you can afford to pay.
So if you’re serious about getting your credit back on track, don’t shy away from unpaid debt. Have it reduced. Pay it off. Get out of debt for good.
Related Articles:
- Repairing your credit part 1
- Repairing your credit part 2
- Improving your credit
- Do it yourself credit repair
