Hey folks!
I wrote the book on resolving overdue debt with amazing credit results and today I thought, since I’m always posting about credit strategies, I’d explain WHY.
The main thing to understand is: Overdue debts negatively effect your credit. Employers, landlords and cell service providers rely on your credit report to decide if they want you in their lives.
If you have ANY amount of overdue debt, it’s an emergency. Some people wrongly believe that if the creditor doesn’t other you that much, it’s fine. NO! Any overdue credit debt negatively effects your Equifax and TransUnion credit reports and, without explaining the entire credit reporting act, it has the potential to keep effecting you negatively for six years even after you pay. Do you want employers, landlords and cell service providers ignoring you? If you said no, read on as this is for you.
Getting any type of financing to clear overdue debt(s) can make sense but it’s all in the details. Using the wrong strategy or no strategy at all often makes things much worse. When you get any type of loan or financing to pay out other debts, it’s critical that your credit report is quickly updated to reflect the paid out debts. Never assume that this will be done by someone else or you`ll be disappointed.
IMPORTANT: The reason to get alternative financing to get out of arrears is so that you’ll never need alternative financing again. If you’re going back to the well more than once, you`re doing it TOTALLY WRONG. It’s exactly like a cast on a broken bone. You may not have WANTED to hurt yourself but you MUST treat it correctly or it WILL get much worse and be much harder to treat.
Step 1. Get fair alternative financing to pay out overdue debts (high interest cards, collections, etc).
Step 2. Get a release letter from each creditor or their agent stating the original account number, agent reference number and confirming no further liability
Step 3. On your new loan make your payments on time or early for 6 to 12 months
Step 4. After 6 to 12 months of on time payments on your consolidation loan, exit to A, which means to apply at any bank or credit union for a loan at their lower interest rates to pay out the balance of your consolidation loan in full. Because you updated your credit reports 6 to 12 months ago and have strong repayment history since then, this is feasible and I’ve performed these steps for my clients many, many times with perfect results.
That’s it! This strategy, if performed in this way, works to save you money now, save you money later and means you will pay the smallest overall interest on the money you owe.
In summary, I hope this has shed some light on strategic debt consolidation and credit maintenance techniques. You can`t underestimate the importance of getting this right. The reward for nailing this is money in your pocket forever and the power of consumer choice. Don’t fix your credit issues, you’ll live life with no consumer options.
Good luck,
Derek G.Boucher
NEED ME TO ARRANGE DEBT SETTLEMENTS FOR YOU? APPLY HERE
Helpful Links:
Ten things that won`t hurt your credit