Debt Problems

How can I get assistance with reparing my credit?

my credit score is low because I have accounts in collections. I would like to buy a home in 3 to 4 years. I need a get out of debt plan.

Public Comments

1. How long have the accounts been in collections? What type of accounts are they? Stay away from companies promising credit repair for a fee. They are mostly scams and cannot remove items that are legitimately on your credit report. All they can do is send a letter of dispute to the credit bureaus - something you can easily do yourself at very little cost. You might try negotiating with the companies that placed the collection items on your reports. Offer to pay them in full in exchange for them having the items removed from your credit report. Make sure to ask for something in writing before paying them though. They will promise you anything to get your payment and then will not follow through. Good Luck!
2. Devise a budget based on your income and fixed expenses. Do what it takes to get those accounts paid asap. Even when they're paid, they will remain on your record for a number of years (I think 6 in the UK). That will affect your mortgage rates in 3-4 years time. It may mean getting an extra part-time job, and putting the entire amount earned towards debt repayment. Reduce your fixed expenses as much as you possibly can. That may mean shopping around for deals on things like mobile phones, IP's, landlines and even utility suppliers. Don't forget to budget for yearly expenses like house/car insurance, car tax, Christmas and birthdays etc. Deal with cash only - freeze your cards or cut them up. That way, if you don't have the money, you do without. Don't bring cash with you unless you're buying something specific. Cut out all the little drains on your money that amount to large amounts over a month or year - takeouts, coffees, cakes and sweets, etc. Buy own-brand groceries, and shop around for the cheapest deals. There are good budget calculators online, just google for a huge variety and you'll find one that suits you. Don't forget to put aside a small amount every month for emergencies too, so that if the unexpected happens, you won't feel like you're messing up your budget to deal with it. Best of luck!
3. http://www.cccsintl.org/
4. You could try a credit repair company. They can be expensive, but worth it if you need to repair your credit and don't have the time to do it yourself. This site has some good info. on it. Good luck! http://creditrepair.divinfo.com/
5. It's great that you have a goal 3-4 years out. In order to get your score up a bit, you'll need to pay off the collections accounts. In the classes that I teach, I tell my students that (hard as it sounds) they need to write down all of their debts - how much is owed, to whom, and what the interest rate is. Once you have this information, take a look at which accounts are in collections. You need to contact the collection agencies and develop a payment plan that you can afford. Please be aware that the collection agencies aren't going to be working in your best interest - they want the money. I would recommend that you pay off your debts by which ones are in collections first, then any others. As you pay off your debts, apply more money to your remaining obligations to get them whittled down. If you can become debt free, take the money you'd been paying to lenders and start putting it in a savings account. This will help you get your down payment for your home in a less painful way. I mean, if you're already used to not living on the money used to pay debts, you shouldn't feel any pain from not spending it. Unfortunately, your credit report will show that you've had loans sent to a collection agency. That information remains on your credit report for about 7 years. So - you'll want to pay them off as soon as possible. When you apply for your home loan in 3-4 years, you'll need to explain to the lender what happened and how you developed a budget, stuck with it, and paid the accounts off. It won't be easy but I'm sure you can do it! Good luck!
6. And you'll find your plan at http://www.thecreditrepairmanual.com two manuals are there to help you repair your credit. Best of luck,
7. Maybe you can try below website to get the information you need. It's about credit repair which you can do it yourself articles for your second opinion.