It’s that time of year again, where the motivational pull to be responsible is stronger than ever. New Year’s resolutions are being made and everyone is rushing to the gym. Even though “living a healthier lifestyle” and “losing weight” are among the most popular goals at the beginning of the year, there is another thing people strive to do better. According to Business Wire, saving money and paying down debt added up to just under 60% of the population’s goals in 2017. Well KLS Financial Services is well-versed in helping people pay down their debts.
Here are a few tips from the experienced staff here at KLS Financial to help you reach your 2018 goals.
- Don’t avoid the collection calls. Most collection agencies don’t report right away. In fact, depending on our client, we wait anywhere from 60-180 days before reporting an outstanding bill to a consumer’s credit. We want to give every opportunity for an account to be taken care of before moving forward to the credit bureaus. Keep that in mind if you fall behind and get a call from a collection agency. Insider tip: most agencies will try to work with you as long as they can tell that you are willing to pay the bill!
- Don’t just check your credit report before making a large purchase that may require a loan. Our daily activities don’t require checking credit so it is easy to forget about. In fact, 1 in 4 consumers have an error on their credit report that can be a bit of a hassle to have fixed. Also, if there is an outstanding balance that’s been reported, it can take 30 days or more to have removed or updated once it is paid. Checking regularly (once a year) can help you spot a mistake or an overlooked bill before it becomes stressful and time-sensitive!
- Ask for a payment plan! If something slips through the cracks and ends up on your credit report, it doesn’t necessarily mean it has to be paid in full right away. Ask the agent if you can split the balance into payments and they might hold it from your credit. However, don’t take advantage. Most agencies won’t split payments past three or four months depending on what type of bill it is.
- If deep down you know the debt is valid, don’t dispute. A lot of people don’t realize that disputing a bill or debt doesn’t automatically remove it from the credit report. In fact, if the debt is valid, disputing can make the process much longer than it needs to be. A lot of credit repair companies advertise that disputing will help repair your credit without you having to pay the bill. Unfortunately, there is a lot of published misinformation in that regard. If a dispute is unsuccessful, it can add anywhere from 30-120 days to the attempt to remove a mark off of your credit.
- Don’t be charged to have your credit repaired! Check with your attorney general to see if the credit repair company is legal in your state. You might be surprised! Collection agencies are not obligated to work with credit repair companies. You might want to try your hand at it first before hiring somebody.
KLS Financial Services is here to help. If your goal for 2018 is to clean your credit and learn how to budget, call the collection agency and see what they can do to help you!
