NetCreditLine.com Daily Credit Line News

Question by Ricky Jones: Does anyone have any tips on settling debt with credit card companies?
i.e. any tricks they might pull to get you to pay more than the settlement price? The lowest they will settle (50%, 45%?) etc.

Best answer:

Answer by devilchkn
1st rule of thumb, NEVER deal with a collection agency!

If you’ve been negligent on payment for quite a while do this:

If dealing directly with a credit card company, or companies, a good thing to do is apply for a cash loan from a bank. Figure out how much cash you have, then call the credit card companies and tell them why you cant pay and how many companies you owe. Be honest and usually they will let you pay off your outstanding debt a quite a discount. I’ve seen them let you pay off at 50% of debt if they think they will never normally recover funds.

Always get the transaction agreement in writing before paying! Over the phone agreements are not a good idea!!

What do you think? Answer below!

Question by ~ Jamie ~: How long does debt stay on a credit report?
I am helping my best friend clear up her finances and she has many, many old collection notices on her credit report that are helping to drag her rating down. They are probably 4-7 years old. Do these ever fall off? Or get written off? It seems like they just keep transferring them to other agencies. She also has a Household Bank credit card in collections – should this be paid first or the old debt? She tried to make arrangements with the collection agency for Household but they wanted much more a month than she could give them, and they refused to make arrangements so right now they are getting nothing. Help – I am not sure where to start.

Best answer:

Answer by Jemma R
6 years til the debt clears xx

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Question by Dennis: How fast does your credit score go up after paying off the debt?
Hello everyone,

I wish to know how fast it would take for my credit score to go up after i’ve paid off all my debt. I plan to get a loan this week and will pay off each card in full. Does the process of getting my credit up take hours, days, weeks, months even? Any information would help, thanks!

Best answer:

Answer by kee96765
It took mine 3 months to go back up to 712. I paid off 16 credit cards last yr in September. I found out in December it went back up. You might want to check with:

http://www.freecreditreport.com/

They helped me a lot.

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Question by love_earth22: How do I fix my credit and make sure my unpaid debt is taken off of my credit report?
I am getting sick of my bad credit ruining everything I try to do. At this point I am finally able to pay off my debt in order to fix this problem. I have heard stories of people paying off their debt but the company leaving them as unpaid on their credit report. I DONT want this to happen. How do I go about paying everything off while making sure it is taken off my credit report for good? How long does it take your score to change after you paid everything off?

Best answer:

Answer by bdancer222
Paying off old debt will not improve your score. The damage is already done and the derogatory item will remain on your credit report for the balance of the 7 year reporting period, whether paid or not.

However, creditors do look at your whole report, not just your score. Paid old debt looks better than unpaid.

With this in mind you should try to settle for as little as you can. If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2, offer 75%. Lump sum gets the best deals. Payment plans must be short term. Get any settlement agreement in writing and keep it along with your payment proof, forever. Do not give collectors direct access to your bank account.

If any of the derogatory items are single entry items like medical and utility bills, negotiate a pay for delete — you pay $ x and they remove the item. This will help your score. But it doesn’t work for regularly reported items like credit cards and installment loans. The collection agency can’t remove what the original creditor reported.

After you get every thing cleared up, you will need at least 24 months of consistent, on time payment history to see improvement in your score.

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Question by Jynjyr E: How do I remedy a Credit Report debt supposed to have been assigned to my X Husband?
My X-Husband and I got a divorce, with it papers that stated as a contract that he would be taking two debts he incurred while we were married but these debts still show up on my credit report. Is there any way to stop these debts from being reflected on my credit as it was agreed via the divorce they were his responcibility?

Any help at all is appreciated.

Best answer:

Answer by Michael T
Since the lender signed an agreement with both of you, you are still both obligated to the lender. Even though the divorce court awarded him those debts and you other debts, the divorce court cannot not break your contract with the lender. Only a bankruptcy court can break financial contracts.

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Question by Brian: What are some tips for getting out of credit card debt?
Right now, I have two main credit cards. One has a 7500 credit limit and the other has a 6000 credit limit. The balances on these are 7800 and 6700 respectfully. They are way over the limit and I want to get them down quickly. Should I put all my efforts into one of them or split it up between the both of them? Also, both interest rates are about the same.

Best answer:

Answer by drbob2k7
Dont just pay the minimum payment as in some cases this deosnt even cover the interest from the credit !

Best wishes

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Storm Warning: Dark Clouds Over U.S. Debt
There’s a whole generation of Americans today that don’t understand the very nature of capitalism -
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Leading indicators decline for first time since June 2010 as jobless claims spiked in April
NEW YORK — A private research group’s forecasting gauge suggests some bumps in the economic recovery this summer. The Conference Board says its index of leading economic indicators dropped 0.3 percent in April, the first decline since June 2010. The index has moved steeply higher in four of the past five months as the job market improved and the stock market rallied. Last month’s spike in the …
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Mortgage rates fall to 5-month low
Mortgage rates slipped slightly this week, remaining near record lows despite growing concerns about a potential U.S. debt default. The benchmark 30-year fixed-rate mortgage fell 5 basis points this week, to 4.77 percent, according to the Bankrate.com national survey of large lenders.
Read more on Bankrate.com

Question by Andrea J: What does the credit to debt ratio on your credit report mean?
I have 100% credit and 0% debt on my credit report. What does this mean? Im young 21 and im just really starting to really look at this stuff. And I really have no idea what all this means.

Best answer:

Answer by Dixie Darlin’
Debt Used divided by Available Credit = Debt Load

Example:
$ 2,500 of debt charged to a credit card
with a limit of $ 5,000

$ 2,500/$ 5,000 = a debt to credit ratio of 50%

$ 10,000 of credit card debt with total available limits of $ 10,000 (means you are maxed out on all your cards!)

= $ 10,000/$ 10,000 = 100% debt to credit ratio

If you have 0 debt then your debt to available credit ratio is excellent.

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Alliance Bank’s RM600m debt notes get overwhelming response
KUALA LUMPUR: Alliance Bank Malaysia Bhd’s first tranche of RM600 million subordinated medium term notes (MTN) has received overwhelming response…
Read more on The Edge

BANK NEGARA’S INT’L RESERVES INCREASE TO RM344.5 BLN
KUALA LUMPUR, April 7 (Bernama) — Bank Negara Malaysia”s internationalreserves stood at RM344.5 billion (equivalent to US$ 113.8 billion) as atMarch 31, 2011, up from RM340.6 billion, as at March 15, 2011.The reserves level took into account the quarterly adjustment for foreignexchange revaluation, the central bank said today.The reserves position is sufficient to finance 8.4 months of …
Read more on Bernama Media via Yahoo! Malaysia News

Flaherty to announce new mortgage rules Monday to curb household debt
OTTAWA – Federal Finance Minister Jim Flaherty is expected to announce new mortgage rules on Monday to stem the tide on household debt. He has scheduled a news conference for 8 a.m. EST before the stock markets open to announce the changes.
Read more on Brandon Sun

Personal Finance Daily: To rent or buy? It may soon be cheaper to buy
The cost of renting an apartment is expected to rise at double-digit rates in coming years. Will that tip more people toward a home purchase? Read that story and more in today’s Personal Finance Daily.
Read more on Market Watch