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Credit problem: Problem that most of us face everyday |
Article Submitted by: Justin scott
Thursday, 23 July 2009
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Credit problem has become a very common feature in our daily lives and
we strive best to come out of such a problem. Most of these credit
problems arise because of the fact that we cannot keep track of our
spending and end up with debt. Default credit card debts, default auto
loans and missed mortgage payments are some of the cases which push us
into credit problems. When you default any debt for a continuous period
of six months, the creditors consider it as a bad debt and report it to
the credit bureaus. The credit bureaus list the outstanding debt in the
credit report of the borrower. Outstanding debts get listed as
negatives in the report and lower your credit score. However, if a creditor reports the debt to the bureaus, or charges off a debt, it does not mean that you are no longer liable to pay back the debt. If you do not pay back the debt, the creditor can sue you to the court and bring judgment against you to recover the debt. Alternatively, the creditor can also sell off the debt to a CA, who in turn can bring judgment against you to recover the outstanding debt. However, the creditor can bring judgment against you only if the Statute of Limitation on the debt has not expired, but if the SOL on the debt has already expired, the creditor loses the right to collect the debt. If the creditor or the collection agency brings judgment against you, your credit score may fall by as much as 100 points. So, one should always pay off the outstanding debt to avoid it getting reported to the bureaus and to avoid judgment. However, if you face any credit problem, you can repair your credit by yourself. Even the Federal Trade Commission recommends repairing your own credit. For this all you need to do is to check your credit report frequently and dispute any discrepancy to the credit bureaus and get it removed from your report. Article Source: http://www.ArticleBlast.com |
About The Author:
Justin is a financial writer and an active participant in the Credit magic community. He helps people in finding out ways to improve their credit scores and shares the most latest Updates in the credit Industry.
Justin is a financial writer and an active participant in the Credit magic community. He helps people in finding out ways to improve their credit scores and shares the most latest Updates in the credit Industry.
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