Cleaning Up Your Credit And Making The Most Of Your Month

Leaving Credit Card Debt Behind

Credit Card debt is increasing for many American families. According to Experian, most family units with a bank card that consists of over $6,000 in debt. For many, this debt can be hard to manage! Do you keep asking yourself why your debts continue to pile up with little to no headway made month to month? 

One can only crunch numbers so many times over again. You may find that the numbers are rarely moving and potentially increasing without using the cards. Read more on 3 tips to help you get out of debt and manipulate your finances to make the most impact.

  1. Consider Your Budget

Start with being honest with yourself about spending. What can you cut back on the short term? Have you looked at how much you are nickel and diming yourself? It may come as a shock what you find is left over after you cut random spending out.  

List out all of your debts, balances, monthly funds, and due dates. Move money around that is strictly for bills only and the deadlines you have for each. Now, what is left? Is there any wiggle room? Decide what is most important next. 

If you enjoy apps on your phone, Mint now has a great updated app that tells you where you ended up overspending for the month. 

A great rule of thumb is to tackle the lowest credit card first and make a larger lump sum on your payment so that one gets paid down quickly. Once you see one balance start to deplete, the other cards may seem more manageable.  While the funds you had for “other” activities may be small, the thought of not having a cloud of debt following you around is much better!

credit repair

  1. Seasonal Job Searching

Also known as the side hustle. Although making a few extra hundred dollars a month may not seem like a lot when you are giving up your free time on evenings or weekends, having a seasonal job that is strict to work to pay the debt off quicker is absolutely worth it. When you have set yourself up on a tight budget and you start working a side job, the money will be a tool to accomplish your goals faster.

Don’t Cut Out all the Fun!

Paying bills is never the fun option however, the freedom from debt will be worth it in the end. If you have found after combing through your finances that you were spending way too much money at the movies or out to lunch, cut back enough to save but try not to completely eliminate everything you do. You may find if you allow for no fun, the budgeting will become harder for you and you will ditch the process in order to continue to live the life you were living. Moderation at this point in the process is key!

  1. Debt Consolidation or Debt Negotiation

You may find terms on the internet about debt consolidation or debt negotiation. There are many companies out there that can do one but not the other. Conduct plenty of research before getting into a company that is for debt consolidation vs debt negotiation. 

Debt consolidation typically means you’re actually incurring more debt. The fact is, debt consolidation does not mean debt elimination. These companies are actually just restructuring the debt rather than wiping it away for you. 

If you are wanting to get rid of debt, the quickest way to do so is to delete the items. 

The flip side of this is debt negotiation. Credit Law Center has attorneys on staff that can help you through this process. This is where eliminating debt actually takes place! Negotiating debts down with the creditors you owe help you attain your goals more quickly than debt consolidation will. Remember that never-ending cycle of debt? It will just continue with debt consolidation. But, with debt negotiation, the end may be near!

Following any of these three options listed is a sure-fire way to start knocking down debt and potentially increasing your credit scores. 30% of your credit score is made up of the utilization on your credit cards. Therefore, if you have several accounts that are maxed out, you probably noticed your credit scores are significantly lower than they could be. In all reality, credit plays a major role in our day to day lives. If you find that you are in a place that you need financial or legal advice, please give Credit Law Center a call today 1-800-994-3070.

free credit repair consultation

5 Questions To Ask Before Starting Credit Repair

So You’re Saying There’s A Chance?

All jokes aside, credit repair is a very serious matter.  We have come into contact with many companies that over promise and under deliver when it comes to the services they offer. Have you been teetering back and forth between companies but have been unsure what to ask? Well here’s your guide for working through the sales pitch, and getting to the hard facts.

What is credit repair and how does it work?

When a consumer decides that they are going to attempt credit repair there is often a “pain point” involved that has led them to this decision. For many of our clients, they have visited a lending institution and have been denied financing. Being denied for a home loan or car loan can really get a person in gear and ready to go because credit is important when it comes to major financial purchases. Have you been denied financing recently and are trying to start making your way back toward better credit?

You may find yourself looking for ways to improve your credit score and running into a dead end with “repair” companies. Another thing you may have found is that you may have heard that you can work on your credit repair yourself.

A law firm, like Credit Law Center has the ability to do more than both a consumer and what a credit repair company can. The side by side shows just a few things that you may want to start quizzing your current or potential credit repair company you hire on and start to look for companies that can help you out in all aspects of credit repair.

1. What Will I Need To Get Started?

In order to enroll in credit repair with Credit Law Center you will want to speak with a credit advisor first. They will walk you through our process and what you can expect as far as cost and time frame goes. You will know after your consultation what the cost could be for credit repair if every item came off the report.

You will notice we said if everything comes off. Each item is priced per line item as we only want to charge a client for the successful removal of what we dispute. You would receive a contract ceiling price and be billed accordingly after each round is completed. We are a pay for performance company, which just means you will only pay us for results as opposed to a monthly repair company.

Next, you will need a copy of your credit report, which the credit advisor will pull with you. They will go through line by line with you and educate you on how you can improve scores while we work on any derogatory items on the report. You can expect to pay $1 at the consultation and then decide if you would like to work with our Law Firm. Again, you will be quoted all pricing before ever signing a contract.

Although the cost may sound cheaper per month for a monthly program, and manageable for your budget, it might hurt you more in the long run.  Too often we see consumers that agree to this and they end up signing up for something that takes years for them to improve their credit. Our typical time frame is 60-120 days depending on what other items are positively reporting on a report.

We will work inside anyone’s budget!

Finally, a contract will be emailed to you and after a few ID’s submitted to your credit advisor, you will be ready for credit repair! We are built for speed and this is why 53% of our business comes from referral partners like loan officers and real estate agents. They can expect that their clients will get results quickly, and be ready for financing.

2. Is There An Attorney Involved/Working For Me?

We currently have 3 attorneys in the office that our clients can speak with about their credit reports or any legalities they may come across during or after credit repair. These attorneys also have the ability to work on your behalf, to stop collection calls as well as work with you on what you can say now that you are a client. When a collection company calls you and you are represented by a law firm, you have the ability to request no further communication at that time. Should you continue to receive calls, you may be able to sue for continued harassment.

Does your current “law firm” have the ability to do this? Ask the hard questions!


free credit repair consultation

3. Do They Have The Ability To Negotiate And Sue?

Credit Law Center has sued all three major credit agencies: Experian, Transunion, and Equifax. Ask your current or potential company in questioning if they can do this!

Unfortunately for a consumer, there are many ways that these agencies and collection companies go in and break the law. The main reason for this is due to the lack of education out there about credit and what can or cannot be done. You want a legal team guiding you and informing you of your rights through this process.

Our legal team is versed in the FDCPA (Fair Debt Collection Practices Act) and  FCRA (Fair Credit Reporting Act).

Although your credit advisor will not give you legal advice, you can rest assured that as a client you have access to any of the attorneys on staff about matters such as harassing phone calls and items being misreported. They can also negotiate debts on your behalf or sue for damages if you have been impacted by misreporting on a credit report.

4. Who Will Be Monitoring My Credit?

There seems to be many companies out there right now that do not monitor the clients credit while in repair, or do not let them know if they have new activity or items reported. We will monitor your credit with our monitoring service and will update you every 45 days or so on your report. You have access to a copy of the report at all times.

Do you receive updated copies of your credit report with your current service?

This is vital for us, as it allows us to see what items are being removed when we dispute and allows us to also see if you are ready to go from a credit score standing on financing. We will never hold a client in repair any longer than need be. If they are at a point that a lender says they are ready to move forward, we will pull them out of repair and send them on their way!

5. Am I Being Billed Monthly Regardless of Items Being Removed or Not?

Lastly, and most importantly, ask what you are being billed for. If you are working with a credit repair company and spending money monthly with no activity as far as your score moving at all, it may be time to make a switch. We are saying there’s a chance! If you work with the right company that can provide you with great results and you listen to the education our credit advisors provide, you may be off to your dream home or dream car sooner than you thought!

If  you are currently working with a credit repair company and are not satisfied with your results, please let us know. We would be happy to help you get financially ready for whatever your next steps might be (house loan, car loan, etc.) Please  contact us today for your personal consultation with a Credit Advisor. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

Article By Breana Washington

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Check out Credit Law Center’s infographic on 4 myths of collections reporting on credit reports.