Debt and Credit Tips

Hoping to get out of debt? You've come to the right place! Here's some helpful tips about getting out of debt and improving your credit.

All of the tips that you will find below are drawn from my book, The Unofficial Guide to Beating Debt.

- Correcting erroneous listings in the late payments section of your credit report is especially important because this information can have such a negative impact on your credit rating and your ability to get a loan.

- Be careful about applying for too many loans in a short period of time. Every application adds another inquiry to your credit report. Five or more inquiries within a six-month period can actually result in your being turned down for a loan.

- If you have been or currently are married, it's vital that you develop a separate financial identity from your spouse. This identity is crucial in the event of divorce, death, or incapacity.

- Pay attention to the two- and three-letter country abbreviations at the end of foreign Web addresses. Most U.S. sites don't have them. Remember that your federal legal protections against billing errors and fraud don't extend overseas.

- When you request your credit report from a credit bureau, be sure to fill out your identifying data completely and, if appropriate, include your "generational information," such as Sr., Jr., I, II, and your middle initial. If you don't, you may receive the wrong report.

- If you follow the advice of a credit repair clinic to alter your identification or take any other illegal action, you may be prosecuted. Sometimes the Feds will let unwitting dupes off the hook, but don't count on it.

- If you are disputing a listing on your credit report, be sure to hang onto the original copies of everything related to the dispute. You may need them later if things don't go smoothly. Never send the originals.

- Remember that there is no charge for correcting erroneous information on your credit report or for any investigations or reinvestigations associated with your dispute(s). Why pay anyone else to do this for you when it is free by law?

- The absolute worst thing you can do when you are in debt is to try to avoid your creditors. Doing nothing to resolve the problem only makes things worse.

- If you can't make your minimum monthly payments, try negotiating lower payments with your creditors. This strategy may allow you to keep your accounts current and protect your credit rating.

- An auto repossession is one of the worst blemishes your credit report can receive, so try to avoid it if you possibly can.

- Bankruptcy is an even worse blemish on your credit report that can haunt you for up to ten years. Only resort to bankruptcy as a last resort when all else fails.

- If you are called at work by a bill collector, and your employer does not want you to receive personal calls, just tell the collector not to call again. They must stop, according to the law.

Did you find these tips helpful? If so, you'll find a lot more in the book.