Tricks That Can Help You Climb Out of the Bad Credit Hole

Bad credit can hold you back from doing things like buying a car or house or renting a house. It can even affect what kind of jobs you’ll likely be able to get. 

However, having bad credit isn’t the end of the world. You can still fix it. If you have found yourself in a bad credit hole, you can climb out of it by utilizing the following tricks.

Pay More Than the Minimum on Your Credit Cards

Maxing out your credit cards can really tank your credit score. Ideally, you want to utilize less than 30 percent of your available credit. You can improve your credit by paying more than the minimum payment on your credit cards each month. 

This will allow you to pay them down faster and lower your utilization overall. Even paying a few extra dollars each month can help you pay off this debt a lot faster.

Get a Part-time Job

It’s not uncommon for many individuals to not have any extra money left over that they can use to pay off some of their debt. If all your money is going towards bills, then you may want to consider getting a part-time job. 

By working just a few hours a week, you can earn the money that you need to get out of debt a lot faster than you would have otherwise.

Negotiate With Debt Collectors

If you aren’t able to pay your debt for several months, those that you owe may seek the assistance of a debt collector in order to try to collect the money that you owe them. 

While it can be scary to get a notice in the mail that a debt collector is now handling your debt, you may find that they are willing to work with you. 

Many debt collectors will allow you to make payments on your debt for an extended period of time. If you have a lump sum of money available, you may be able to settle your debt for a fraction of what you owe them.

Seek Credit Repair Services

It can be difficult to repair your credit on your own. This is why many individuals seek credit repair services. They can look at your circumstances and credit profile to give you specific advice as to how you can climb out of the bad credit hole.

Bad credit may feel insurmountable, but there are plenty of things that you can do to climb out of this hole. Though it’s easy to be overwhelmed and to try to ignore your debt, it’s important that you deal with it and that you commit to paying it off no matter how long it will take. Once you pay off your debt, you’ll see your credit steadily grow over time.

What to Do If You're Harrassed By a Collection Agency

Like it or not, the world revolves around money. You need strong finances to keep a roof over your head, put a down payment on a car, and get a good education. Sometimes, you can’t afford all of those things outright, so you take out a loan and pay it back over time. 

Financing any big purchase requires organization and timely payments. Even when you play everything the right way, you still may end up dealing with pesky debt collectors that won’t seem to leave you alone. If you are being harassed by a collection agency, there are some steps you can take to find peace.

As a borrower, you agreed to pay back hard money to your loan seller. That doesn’t mean you agreed to be harassed and bothered while you’re working on paying that amount back. Of course, if you have overdue or missed payments, catching up on those will be the easiest way to get debt collectors off your back. 

But if you feel you’re being harassed without reason, you have the power to confront these collectors, verify your records, and even seek legal representation if needed. Follow along for a few helpful tips to stop collection agencies from harassing you.

Keep and refer to your records.

Clarity is incredibly important when it comes to any amount of money or financial situations. Any time you sign a legally binding document like a loan agreement, you need to keep a record of that information. 

Having documents you can refer to and proof of monthly payments can stop a collector in their tracks because they can’t make an argument against you. When you buy a home, that is mortgage 101. 

As you search for mortgage loans, you are expected to do your research, take notes, and protect all documents involved in the mortgage process. This puts you in control of your finances and makes sure a lender can’t take advantage of you down the line.

Consult legal experts if necessary.

Most cases won’t come to this, but you can take legal advice if you feel a private money lender is harassing you without cause. Groups like Global Legal Law Firm, a San Diego based law firm, work hard to untangle complex litigation cases to guarantee that individuals, corporations, and commercial entities recover all of their assets. 

Consult an expert if you think you have been mistreated. They will have the expertise and intimidation factor to help force collectors to leave you alone.

Know your rights and stand your ground.

It’s easy to feel intimidated within the world of finance, especially dealing with brokers and loan collectors. Your biggest tool is information. Know your rights and do your research. If you are being mistreated, say so, and don’t give in. This tip may seem like one of the basics, but knowing your rights will keep you in control of the situation long term.

Next time, take your business elsewhere.

Taking out a loan rarely seems simple. With all the small details and fine print, it’s possible you made a minor mistake that opened the door for debt collector harassment. Next time, take your business elsewhere. Companies like hard money lenders Oregon offer hard money loans and create a simple, straight forward loan process. 

Especially if you need a private money loan to turn a quick profit in the case of real estate acquisition or fix and flip situations, you can count on hard money to be a reliable loan that won’t lead to complications down the line.

It’s OK to ask for verification and tell collectors to stop harassing you.

You may feel powerless when a debt collector knocks on your door, but you actually have all the power. Be clear and concise and refuse to back down. Ask for verification of your loan amount and interest rate. You’re also within your rights to directly tell collectors to stop harassing you. There is a process to officially do this, but it can save you a headache down the line.