For a number of years fire fighters have instructed the strategy of stop, drop and roll to survive being on fire. With regards to living through the credit rebuilding process, there is a comparable life giving mantra...stop, think and listen. When you are being swallowed up by growing debt, it is essential to stop for a moment, take the time to mull over your position and be attentive to the behavior being reported on your credit profile. The most beneficial credit rebuilding tool you possess is the one between the ears. Let's begin by taking a look at what can take place when you have bad credit as well as the things you can do to safeguard yourself and your family from the creditors and collection firms.
If you are obligated to pay child support, college loans or income tax, the government can take your hard earned money. Meaning that each year that you miss payments on these items you are deemed to be in default and steps can be taken to seize your wages to fulfill these debts. When it comes to back taxes, the IRS is obligated to inform you prior to deducting any fees out of any tax refund you might be entitled to.
If you have late bills on utilities, under law (in many states) the utility companies won't be able to cut your heat during specific months of the year as stated in the law, despite nonpayment. In the majority of states the utility companies must provide you with written notice before they can cut off your service. This may give you time to have enough money to cover your outstanding utility bills. In the same way, most insurance plans will allow you a grace period . When you are given a grace period it's time to stop, think and listen. If after review of your bills and income, you conclude that you do not have enough to pay the entire amount of the bill, you may get by with only making a reduced or minimum payment. Paying something toward your bill is better than skipping your obligations completely.
One more point you have to have in mind is that when creditors write off a debt, you might be required to pay taxes on the bill. After a creditor writes off a debt it is sent to the IRS for review and if they choose to do so, you will still pay at the end of the year. So the best bet is when you receive is to write the lender or creditor and make them aware of your positionYou can then request an extension on payments. The reality is most lenders that lend you mon hope to retain you as a long term customer. If you re able to keep the creditors on your side, this is your best answer for avoiding further problems. One more suggestion is to send in partial payments on current bills that are ?overdue?. The next bill will be steep, but if you keep sending partial payments until you are caught up, your name will usually not be reported to a credit bureau for delinquency.
When you've got a bill and also have the money to make payment, tell the creditor that you will send the money through regular mail immediately. Do not waste money on services that will charge you to send a payment immediately. If you contact the creditors and they simply deny you a chance to extend your debt or ask for proof of your circumstance, it may be time to make contact with a Credit Counselor. The Debt Counselor acts on your behalf to resolve the problem.
By taking the time to stop, think and listen, the job of credit rebuilding will go much more smoothly and you will be on top of your finances again very quickly.
If you are obligated to pay child support, college loans or income tax, the government can take your hard earned money. Meaning that each year that you miss payments on these items you are deemed to be in default and steps can be taken to seize your wages to fulfill these debts. When it comes to back taxes, the IRS is obligated to inform you prior to deducting any fees out of any tax refund you might be entitled to.
If you have late bills on utilities, under law (in many states) the utility companies won't be able to cut your heat during specific months of the year as stated in the law, despite nonpayment. In the majority of states the utility companies must provide you with written notice before they can cut off your service. This may give you time to have enough money to cover your outstanding utility bills. In the same way, most insurance plans will allow you a grace period . When you are given a grace period it's time to stop, think and listen. If after review of your bills and income, you conclude that you do not have enough to pay the entire amount of the bill, you may get by with only making a reduced or minimum payment. Paying something toward your bill is better than skipping your obligations completely.
One more point you have to have in mind is that when creditors write off a debt, you might be required to pay taxes on the bill. After a creditor writes off a debt it is sent to the IRS for review and if they choose to do so, you will still pay at the end of the year. So the best bet is when you receive is to write the lender or creditor and make them aware of your positionYou can then request an extension on payments. The reality is most lenders that lend you mon hope to retain you as a long term customer. If you re able to keep the creditors on your side, this is your best answer for avoiding further problems. One more suggestion is to send in partial payments on current bills that are ?overdue?. The next bill will be steep, but if you keep sending partial payments until you are caught up, your name will usually not be reported to a credit bureau for delinquency.
When you've got a bill and also have the money to make payment, tell the creditor that you will send the money through regular mail immediately. Do not waste money on services that will charge you to send a payment immediately. If you contact the creditors and they simply deny you a chance to extend your debt or ask for proof of your circumstance, it may be time to make contact with a Credit Counselor. The Debt Counselor acts on your behalf to resolve the problem.
By taking the time to stop, think and listen, the job of credit rebuilding will go much more smoothly and you will be on top of your finances again very quickly.
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