Dealing with Credit Card Debt

Dealing with Credit Card Debt

Do you have a hard time paying your credit card bills? Starting to get notices from waiting creditors to pay? Worried that you might lose your properties like your house because of credit debt?
Chin up: Dealing with credit card debt is not as hard as you may think. If there's any consolation, you're not the only one facing such situation. At some point, many people like you face financial crises with credit card debt. But you must remember that your financial situation doesn't mean it should go straight to the dogs, making it worse than as it is.

Here are some tips to help you cope with your credit card debt:

1. Make a Budget. If you want to have a grab of your financial situation before you lose everything, making a budget is what you should do first. Assess how much do you get from your income or other means and your expenditures. For example, if getting that posh apartment means you have to limit your meals to once a day, then it is not a great and sound budgeting decision. Your goal is ensure that you can answer for all the basic necessities: food, housing, clothes, health-related costs, among others.
2. Contacting Your Creditors. Remember: Running away from your creditors is not the answer. It is not a solution, and may in fact lead you to bigger problems. If you are having trouble paying off your debts, address this immediately with your creditors. State to them sincerely and fully the reason why it has become hard for you to pay these debts, and check if they could give you a revised payment arrangement that will put you at ease on your payment terms. Do not let creditors turn over your situation to someone or an agency to do the collecting for them, as this means that they have given up on you.
3. How to address Debt Collectors. There is a law that gives certain conditions for debt collectors as to when and how they should ask you to pay. The federal law, Fair Debt Collection Practices Act, clearly states that those collecting debts may not bug you, give false assertions, or do practices that are not fair when they are getting to collect money from you.
4. Credit Counseling. You could also consider getting the aid of groups or institutions that will help you in your problems. If you managed to have an improved payment arrangement of your debt with a good credit counseling organization, creditors may approve of your proposition and accept your modified arrangement plan.
5. Bankruptcy. Generally, personal bankruptcy is known as the last choice to fix your ballooning credit debt. A bankruptcy unfortunately stays on your financial information report for years. Getting additional credit, buying a house, sometimes even getting a job might be hard for you. Technically, however, it is a legal way of addressing your credit debt.
   

Tag: Dealing with Credit Card Debt

How to Recover Your Stolen Identity

How to Recover Your Identity

"How to Recover Your Identity

Recently, a co-worker of mine mentioned that one of his friends recently recovered his stolen identity. Astonished, I asked how long the recovery process took. "Only two years" he replied.
Compared to my own six year nightmare "only" maybe appropriate. However, like most victims of identity theft, he probably thought "when". As in, "when will this nightmare end, and when will I get my life back?"
Privacy Rights Clearinghouse is a consumer nonprofit organization. They have reported that victims spend on average 175 hours while attempting to recover their identity, often over a period of several years. Then, factor in out of pocket expenses, (usually over $1,500 according to the FTC) and recovery gets even more painful.
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How do you restore a stolen identity? What are the steps involved?
Generally, you start by filing a police report. At the same time you are at the police station, go ahead and obtain a police report on yourself. That report doesn't mean other law enforcement agencies have been contacted - you should do a complete search of local and federal law enforcement databases too find out if anything else, including criminal activity exists on your identity. Many unsuspecting victims have been arrested for crimes they didn't commit!
You're also going to need the police report you filed to contact all of the different agencies and organizations, including the Social Security Administration, The Federal Trade Commission, all of your financial institutions, the 3 major credit bureaus, the Passport Office,The Department of Motor Vehicles, and the Post Office . All of these places must be sent a fraud notification alert. Regarding your financial institutions, notify all of them to cancel your credit cards and close your bank accounts. Determine from your bank if there has been any suspicious activity, such as accounts tampered with or opened fraudulently. Open new bank accounts with password verification, and any other fraud protection your particular bank may offer.
Know your rights. Obtain a credit report from each of the 3 major credit bureaus. According to the Fair Credit Reporting Act of 1992, you must be told not only what's in your file but if that information is being used against you. The Federal Trade Commission recently expanded the rights available to victims of identity theft, including your right to get negative information due to fraud blocked from your records.
Make sure that your credit report at each of the 3 major credit bureaus reflects the identity theft and gets flagged with a fraud alert. Many victims have received assurances that the matter would be resolved, however months and sometimes years later, the credit bureaus have not cleared their records. Once a negative gets put on your record, it seems very difficult to get the credit bureaus to remove it, in spite of the countless documentation you provide to them. As a victim myself, I sent documentation including police reports to all three credit bureaus every month over a period of several years! But it must be done. Negative entries can affect you well into the future when buying a house, car or any other big ticket item. Constant follow up is critical. That goes for all the organizations but especially the credit bureaus. Be diligent until the matter gets resolved. Getting a lawyer isn't a bad idea if your problem is particularly difficult.
Avoid "credit repair companies". No matter what they advertise, there's usually nothing they can do to help you with identity theft. Some agencies even offer to help you apply for credit under a new identity. Hello? When trying to eliminate fraud from your record you don't want to create more fraud!
Advise the utility companies of the theft. It's not just bank accounts and credit cards. Many identity thieves commit fraud by opening telephone accounts, purchasing cable television or establishing credit with the gas & electric companies, in the hopes it will go unnoticed for as long as possible.
Identity theft can be a shattering experience mentally and emotionally - a total nightmare. Victims often feel violated. Often victims discover that the thief was a family member or close friend. It's not the victim's fault of course but the feelings remain. A network of support groups and counselors exists if you need it. If necessary get counseling. Don't let this crime ruin your life!
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The road back from identity theft can take years, be costly, and cause victims much stress and pain. But follow the steps laid out here, and believe that the nightmare will end...the nightmare WILL end."

Tag: How to Recover Your Stolen Identity