Credit card and car debt

[MissValerie2003]

Okay I'm 19 and have $23,000 in debt and $16,000 for a car that I got out for my own mother and she screwed me over. The rest on stupid decisions I made. I've come to realize that without your credit your basically a no body. I have talked to some companies locally in San Antonio where I reside and this one company GUARANTEED:D 80% taken off my credit report. Good RIGHT??? But still technically that means I STILL owe the money right? OK, so now what do I do?

[Trish]

Welcome Valerie.

Who is the company? And why would they only guarantee to remove 80% of your bad credit?
Are they in good standing with the BBB?
Are they charging you upfront and if so, how much?

Sorry, I'm just leery of credit repair companies. Some are legit, but a lot aren't. Whoever they are, check into them before you give over your information. Also, a lot of repairing you can do on your own. It's really not that difficult depending on what you need to have removed.

Just my .02

[chane]

Well, 80% is about average, I guess. But, credit repair companies are not allowed to make guarantees according to the CROA (Credit Repair Organizations Act).

I quit personally doing credit repair for clients about a year ago, but I still get asked quite frequently by clients. I realized that I could educate and help way more people by coming up with a website and promoting it then by personally working on their credit reports. I now get about 50,000 visitors every month.

As Americans, we have may civil rights and I think people should learn consumer law and the credit repair process. Because what you don't know CAN and WILL hurt you.

But, I realize that not everyone wants to learn this stuff. The same as not everyone wants to learn how to change their oil or do their taxes. They just want their credit repaired and would rather pay a professional to have it done.

So, I have done research on credit repair companies and established relationships with them so that I can refer clients to them and know that they will be taken care of.

I refer most clients to Lexington Law. But, I have compiled a list of the top credit repair companies and recommend that you check them out and pick the one that works best for you. I have met with (in person) or spoke to the owner of every company on that list.

I refer literally hundreds of people to these companies every month and have not had 1 complaint. If I ever get a complaint, I will contact them directly and ask what the deal is.

[jjgross]

Originally Posted by MissValerie2003

Okay I'm 19 and have 23,000:o in debt 16000 for a car that I got out for my own mother and she screwed me over. The rest on stupid decions I made. I've come to realize that without your credit your basically a no body. I have talked to some companies locally in San Antonio where I reside and this one company GUARANTEED:D 80% taken off my credit report. GOod RIGHT??? But still technically that means I STILL owe the money right??:confused::confused: okay so now what do I do!!

Ok take a deep breath relax all this will pass. Now let's see what you can do.

1. Has any gone to collections?

2. You need to understand that this didn't happen overnight, and your mother owes yes. Thats a different issue!

3. Get the thought of your a nobody out of your head, you made a mistake now start working on correcting this.

4. Get your 3 credit reports and go through them.

5. Study this site for a couple of days and ask questions we'll walk you through some of it. DON'T PANIC.

Hey trish i'm at 648 now :p

[chane]

One more thing. Check out Dave Ramsey to learn about getting rid of that debt. He is humorous and very likeable...oh and he helps tons of people pay off tons of debt.

He has a TV show, books, a radio station. He is everywhere nowadays and he is great for America. I absolutely love him!

[MissValerie2003]

All of them are at collection companies. And I think I've made a mistake by calling all of them and asking if we could do some sort of settlement plan. So if I were to dispute them wasn't I being recorded?? I want to get rid of this! I could so try on my own I just need to understand a little more.

[chane]

Originally Posted by MissValerie2003

All of them are at collection companies. And I think I've made a mistake by calling all of them and asking if we could do some sort of settlement plan. So if I were to dispute them wasn't I being recorded?? I want to get rid of this! I could so try on my own I just need to understand a little more.

Yea, you shouldn't be talking to them about settling if you're going to dispute the accounts. If you're going to work out a settlement plan with them, just negotiate removal of the accounts from your credit report once they're paid. Get the agreement in writing before you make another payment. This is extremely important. Because, lets say it takes you 2 years to pay...well, if they don't remove them after you pay, they will stay on for another 7 years. That will be at least 9 years total that your credit will be shot.

There is not actual way to erase the debt besides paying it. Disputing will only help get items removed from your credit report and it's much easier to have paid items removed then it is unpaid items.

[MissValerie2003]

okay. so should i pay?? or should i just dispute them?? im confused!!! i haven't made a payment to them i'm really not sure what to do?

[Trish]

First, stay off of the phone with CAs. Any future correspondence do in writing.

Next, if you haven't yet, get copies of all 3 CRs. Get them directly from the 3 CRAs.

Opt out - Go here and opt out. It keeps the CRAs from giving out your info to 3rd parties/CAs, etc.
www.optoutprescreen.com

Once you get your CRs, dispute all personal info. Have any name, ss#, phone #'s, address variations removed. Employment info can be deleted easily. It would be ideal if all they have is your CURRENT info, one addy and that's it. The less info they have on you, the easier it is to have disputed TLs removed.

Once you have update all personal info on your CRs, then go ahead and dispute the collection accounts.

If the CAs are calling you to make payment arrangements or harassing you to pay, then send them a Debt Validation letter with a limited cease and desist. This tells them that you will only deal with them by mail and they cannot call your home any more.

Hope this is making more sense. It is confusing at first but after a little bit of reading, it will start to click.

Also, just keep coming here and asking questions. Everyone here is very helpful and friendly.