Stop Think and Listen when Repairing Credit

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					Stop Think and Listen when Repairing Credit
             One of the best tools for repairing credit is to stop, think, and
    listen. If you are in debt, you need to stop and think about your situation
    and stay alert to the activities on your credit report. In this article, we are
    going to examine disadvantages and advantages available to you as the
    debtor. Let’s take a look at what can happen when you have bad credit as
    well as what you can do to protect your self from the creditors and
    collection agencies. If you are obligated to pay child support, college
    tuitions, income tax, the IRS can take your money. This means each year
    that you miss payments are at default the IRS will deduct your entire tax
    refund to repay the debt. The IRS is obligated to contact you before
    deducting any fees from your tax refunds. If you miss payments on
    Insurance Policies and you have conditions stipulated on that policy you
    may be at risk of loosing your property. If you have late bills on utilities,
    under law, (in most states) the utility providers cannot cut your heat during
    particular months stated in the law regardless of nonpayment’s. Most
    states are required to give you a written notice before they can disconnect
    your service. This will give you time to find the funds to pay toward your
    utilities. Likewise, some insurance policies will allow you a grace period
    toward your insurance. Anytime you are allowed time it is time to stop,
    think and listen. If you take the time to review your bills and funds and
    come to the conclusion you do not have enough to pay the entire amount
    of the bill, you might get away with minimal balance temporarily. Paying
    something toward your bill is better than avoiding your obligations.
    Another point you want to keep in mind is that when creditors write off a
    debt you may be required to pay taxes on the bill. Once a creditor writes
    off a debt it is sent to the IRS for review and if they choose to do so, you
    will still pay on that bill at the end of the year. So the best bet is when you
    get the first letter in the mail asking you to pay your bill is to write the
    lender or creditor and explain your situation politely and ask for an
    extension on payments. The truth is most creditors that lend or extend you
    credit hope that you are a returning customer and only suffering
    temporarily. If you can keep the creditors on your side this is your best
    solution for avoiding complications. Another suggestion is to send in
    minimal payments on current bills that are overdue. Your next bill will be
    steep but if you keep sending minimal payments until you are caught up,
    your name will not go in a credit bureau. If creditors recommend that you
    send payment immediately to avoid hassles, disregard the creditor.
         The creditor is doing nothing more but adding more expense to
your debt. If you have a bill and have money to make payment tell the
creditor that you will send the money through regular mail immediately.
Do not waste money on services that will charge you to send a bill. If you
contact the creditors and they simply deny you the opportunity to extend
your debt or ask for proof of your situation, it is time to make contact with
a Debt Counselor. The Debt Counselor will work on your behalf to resolve
the issue.

        Do not argue or use foul language when you are addressing your
debts, since this will only add more problems. If you have a bill, more
than the time allowed for pay it is important that you DO NOT contact the
creditors or collection agencies. This is only letting the agencies know that
you realize you owe the debt. By acknowledging, the debt will open up a
new debt. Collection agencies and creditors pose a threat to millions of
people each day, so the key to solving the problem is finding a solution to
the problem. Stop, think and listen before you act.

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