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How the average person can save money quickly and easily

Deal Smartly with Credit Card Delinquency

cd-1There’s no doubt the majority of Americans are under financial stress. Nearly 75% hold at least one credit card and the average delinquency rate has reached $15,607. Erratic spending habits can land consumers in a huge financial mess. If you have been battling credit card delinquencies, and don’t know how to fix them, Getting Money Smart has damage control techniques that can help deal with credit card delinquency.

Restore Your Account 

Make a list of accounts that show credit card delinquencies from your credit report. If they are not charged off yet, get them back to current status by paying off the past due amounts if you possibly can. Then keep making minimum monthly payments on time.  Making regular timely payments will put a stop to the late entries on your credit report as you clear up the mess and restore your account to good standing.

Don’t Ignore Collection Calls

Sure, the telephone ringing with debt collectors isn’t exactly what anyone wants to live with. If your account has been handed over to a collection agency, you are bound to get calls and written correspondence from them. Pick up the phone and talk to the debt collector. Keep your paper work ready, so you can verify account details with them.

Explain why you fell behind on your bills and if it’s possible negotiate the best payment plan you can realistically live up to. However, be sure not to disclose your bank account information, employment status, work place or any other identifying information that would allow them or colleagues of cd-2theirs to harass you with telephone calls at work or elsewhere. You might even be able to work out a reduction of the debt that’s owed by asking for it on the telephone.

Work out a Settlement

If you have charged off accounts with credit card delinquencies, consider trying to settle them with the collection agency. Just paying off your past due balance is not going to do any good for your credit report. If possible, work out a reasonable settlement with the collection agency.

Speak to the manager and get him or her to fax you a copy of the settlement agreement before you make any sort of payment. Even though the account may not be reported on your credit report as paid in full, a settled account still indicates a positive effort. Once your account is settled, you will receive a settled in full letter from the collection agency as well as the original creditor.

Consider Hiring an Attorney 

Consider getting yourself an attorney or a debt consolidation agency to spare you the trouble to clean up your credit if you have the funds to pay for the service. Both parties will work in your best interests to resolve your credit card delinquency  debts. Fees charged by attorneys and debt consolidation firms can be costly, but can also be worth the professional help to get your credit on the right road to recovery.

 

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