Life After Debt

"For some people, debt is no longer a slight inconvenience?it is a rapidly growing monster. "

"Under the Fair Debt Collection Practices Act, debt collectors may not use any false or deceptive tactics to collect a debt or obtain information."

"Documentation?and the discipline of accumulating good documentation?can be your best ally in the process of working with collectors and keeping them from harassing you. "

"You can't borrow your way out of debt?the only exception is if you can get the interest on your total bill reduced. "

"If your total unsecured debts total twice your annual income?and you don't foresee an improvement to your financial circumstances?you may need to consider bankruptcy as an option. "

"Negative information in your credit files can prevent a lender from even considering your credit application?regardless of your ability to pay. "

"Credit scores help lenders streamline underwriting by quickly categorizing borrowers and evaluating the likelihood of default."

"The Equal Credit Opportunity Act prohibits denying credit based on a person's race, color, place of national origin, religion, sex, age, or marital status."

"The Fair Credit Reporting Act provides a list of rights and procedures that will assist you in clearing away negative remarks and reestablishing your creditworthiness."

"When negotiating with a creditor, your priority is to have the account deleted or removed completely from your credit report."

"If a credit bureau refuses to investigate a legitimate dispute by claiming it is "frivolous and irrelevant," you can obtain an attorney and file a lawsuit against the bureau for noncompliance with the Fair Credit Reporting Act."

"Listen carefully to advice from credit repair agencie; false claims, along with the pitch for getting a new credit identity, should alert you to the possibility of fraud."