Legally Erase Debt Without Ruining Your Credit
Legally Erase Debt Without Ruining Your Credit - Become Debt Free in Under 12 Months
Your credit rating is crucial to many aspects of your life. It represents the ability to obtain financing at a reasonable cost, the ability to purchase a home or car and, possibly, the ability to secure meaningful employment. There are several ways to improve your credit rating that can be implemented in a very short period of time. You can become debt free in under 12 months and watch your credit score soar.
You can legally erase debt without ruining your credit. There are two ways that this can be done without filing for bankruptcy. Your first step in this process is to obtain your credit report from each of the three reporting agencies. You are entitled to a free report once a year from each bureau.
Once you have received your report review it carefully. Errors can be found in every report. Verify that any negative accounts have not been listed past their removal date. Negative accounts can only be listed for seven years from their last date of activity, not from when they are reported. Disputing these accounts and having them removed from your report is one way to legally erase debt without running your credit. Once removed, these accounts will not be placed on your account again.
Next, any account that is listed by a collection agency that has not had the status updated for over a year, dispute immediately. There is a significant chance that the agency has sold the account and cannot verify the information any longer. Without being able to verify your account status, by law, the bureaus must remove the accounts. These are two very important steps to become debt free in under 12 months. Again, these accounts will not be placed on your report again.
The second option you have is to consider a consolidation plan. If you work with a credit counselor they may be able to reduce your debt significantly. Removal of fees and penalties, reducing or removing interest and negotiating a low pay off amount is what these companies can accomplish. Once you have settled on a pay off amount, you can obtain a loan to pay these debts in full. A short term loan will allow you to still remain on track to become debt free in under 12 months.
By consolidating your bills into one payment your credit reports will reflect the action as being debt free. You have now legally erased debt without ruining your credit.Lower your debt with the help of a debt consolidation company. You really can get rid of debt while improving your credit score.
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