Capital Filing Services

Debt Resources From Capital Filing Services

Lately, we’ve discussed the debt collection process and the importance of good credit. The following resources offer more helpful information on these topics:

• The Federal Trade Commission provides a copy of the Fair Debt Collection Practices Act for consumers to inform themselves.
• Find out more about how you can improve your credit with this article from Experian.
• The total U.S. consumer debt is about $2.43 trillion. Read more statistics with this helpful list from CreditCards.com.
• MSN.com offers some quick tips for improving your credit score.
• This article explores what bad credit means for your finances.

WATCH: How Credit Scores Work

If you have any line of credit whatsoever, then you have a credit score. Understanding how this score works can be a great asset in proper money management.

The following video explains credit reports and how you can increase your score. If you have a higher score, then you’ll receive larger loans and better interest rates in the future. Even if your score is lower than you would like, it’s possible to increase your credit with the help of a debt counselor or finance attorney. Keep in mind that there are plenty of resources available to help you stay on top of your finances.

Why Good Credit Matters

Good credit is easy to establish if you pay off your credit card bills every month, or at least consistently pay over the minimum payment. Poor credit is just as easy to fall into if you miss a payment. The following article will explore the importance of maintaining a good credit score.

• Security: If you max out your credit cards and discontinue making payments, then you won’t be able to take out lines of credit anymore. This can diminish your ability to be prepared for emergencies like medical situations or car breakdowns. Conversely, when you have good credit, companies begin to raise your limit, giving you the opportunity to better handle financial emergencies.
• Employment: Prospective employers may conduct a credit check to ensure that you have demonstrated financial responsibility over recent years. If your debt is too high, then they may pass on hiring you.
• Taking out a Mortgage: In order to secure a good loan for a new home, it’s necessary to have a solid payment history. Lenders will look at your credit score to determine an appropriate cost of borrowing and loan limit.
• Buying a Vehicle: For most consumers, purchasing a car requires a loan. Similar to a mortgage, your credit score will determine whether you qualify for an auto loan, the amount of the loan, and the interest paid every month.
• Setting up Utilities: Utility companies consider borrowing electricity and gas to be in the same vein as borrowing money. A good credit score will ensure that you are able to secure electricity, cable, water, and a phone line for your home.

Stay on top of your bill payments to keep your credit score high. If you need help with your debt, then consider contacting a credit card counseling company or an attorney specializing in creditor’s rights and recovery.

The Basics of Debt Collection

When consumers start falling behind on credit card payments, credit card companies are forced to act to collect the debt. This must occur under the Fair Debt Collection Practices Act, a bill passed by congress to ensure that debt collectors follow certain laws. The following article explores what happens when credit card companies begin the process of collecting a debt.

Initial Notification
Once you miss a payment, a collection agency will send you a notice stating the issue. You have 30 days from this point to make sure that there are no mistakes with your account. After this notification occurs, a new entry will appear on your credit report. It’s essential that you review this record carefully, because mistakes occasionally occur.

How to Respond
Under the Fair Debt Collection Practices Act, you can work out a repayment plan with a lawyer or debt counselor. During this process, it’s a good idea to close the account in question to stop further interest from accruing. Contact an attorney to become fully informed of your rights and learn about your options for repayment.

Clearing up the Debt
Collectors will often agree to a reduced settlement if you demonstrate a willingness to cooperate. It’s important to negotiate a deal and settle your debt in order to begin rebuilding your credit, as even small changes in credit score can greatly influence your ability to take out loans, rent a residence, and open new credit accounts.

For more assistance in getting out of debt, consider contacting a credit counseling company. There are also classes and services available to help you learn sound credit practices in order provide more security for your financial future. Seek help before you find yourself immersed in debt and you can protect your credit score.

Debt Resources From Capital Filing Services

Although it is essential to our society, incurring debt can sometimes be brutal. In order to keep your head above water, it’s very important for you to be careful when taking out and repaying debt. For more information, follow these helpful links:

• Are you struggling to make your monthly payments? Lean how to better manage your money with this page from CNN Money.
• Filing for bankruptcy should always be a last resort. To learn the bankruptcy basics, take a look at this page from USCourts.gov.
• What is debt consolidation? Find out at DebtConsolidation.com.
• Making the minimum monthly payments is a good way to rack up serious debt. Learn the dangers of minimum payments at CreditorWeb.com.
• How many credit cards is too many? Get this complicated question answered in this article from About.com.