Erase My Bad Credit Score Fast

Credit Debt – Credit debt comes in many forms such as credit cards, car loans, mortgage payments, rent to own, personal loan debt and more. Once you own credit debt you are obligated to pay it as agreed or collection agents will begin to follow your trail where ever you go. Sometimes unannounced problems arise like medical bills, job loss, income change, death in the family, etcetera; these issues can wreak havoc on your credit debt. Don’t worry though, because worrying may just cause you serious medical problems.

There are ways to overcome credit debt if you just take the time to stop and think for a moment. In the following paragraphs, I will give you some free tips on how to crack the code to debt reduction with your creditors.

First make a list of all the debt lenders you owe money too. Next, list out what you owe each creditor and how much your monthly obligation is to each of them. When your list is completed gather up the latest copy of each statement you received from the lenders. Examine the statements and jot down the corporate office address and phone number or payment address if this is the only available information.

Ok, now it’s time to locate your last months work pay stubs which means if you get paid weekly put together your last four payment check receipts or last two if biweekly. If you happen to have your last two years tax returns it would really be a feather in your cap if you could retrieve a copy of those as well.

Credit Debt Getting Started

Put together a budget of your monthly expenditures, listing out where the money you receive in pay goes too. Be realistic here; if you buy $250.00 worth of gas, list it like that and not $200 just because you think you might be able to cut back a bit. Just show it as it really is for each outgoing debt payment. An easy way to do this is to get a copy of your bank statement where you have used your debit card. Most people use debit cards more than cash these days so tracking your expenses will be much easier.

With all this information, list out what you think you could reasonably pay each creditor on a monthly basis and then subtract twenty percent from that number. The twenty percent will become clear in just a moment.

The final step, now call or write to each of your creditors and explain your financial situation. Let them know that you would like to continue paying their requested monthly obligation; however it is not possible for you to do that at this time. Allow them to know you ran a budget check on your current credit debt obligations and you are unable to meet your full monthly payment. Ask them if they could work out some sort of agreement to lower your debt or payment amount each month. If they do not offer a suggestion you should, but wait and see what they may be able to come up with first, before you do.

You may be surprised at what you will find the lenders will do for you. Sometimes they will knock of a hefty chunk of debt just to make sure they get paid. Other times they may lower your payment substantially for a limited time or even an indefinite time period.

Just remember not to let the creditor ask you to pay a monthly obligation of more than you can afford. I asked you to subtract twenty percent earlier, of your reasonable payment so you can use the gap to negotiate up to the maximum limit you set for yourself in your new credit debt budget.

If you are having trouble dealing with the creditors agent, try writing to the company’s president; explain your the conversations you had with his/her employee and send him/her a copy of your pay stubs budget and last two tax returns if he/she asks you for it. I always suggest sending my budget and pay stubs to them. Let the CEO/president know that it is vitally important that if you can’t get any cooperation during these hard times you may be forced to file a bankruptcy. If you are really in this tough situation then you would not be telling this person anything that wouldn’t be true because if you can’t pay your bills, you may not have a bankruptcy choice.

Tip: Never use foul language or lose your temper when dealing with your credit debt creditor; they will usually not help someone who treats them rudely.