College is over and her come the Creditors: Tips of debt
management
Are you counting down till the 6months before you become a
check book toting, rent paying, suit wearing, 40 hour a week, loan crisis
adult? Well let’s not wait till the endless phone calls, letters, and emails
fill up your mailbox and inbox from creditors. Get prepared NOW!
·
Do you know what your credit score is?
·
Do you know what’s on your credit report and who is running your credit?
·
Do you know your total student loan and Credit card debt?
·
If you answered NO to any of these questions KEEP READING!
For starters let’s get you in the know
1.
Start by going to Annualcreditreport.com—ITS FREE
2.
Creditkarma.com is your next stop to get your credit score and credit
advice—ITS FREE
Now that
you have this you should have a good grasp on your debt. You should know who
will be calling you in 6months. Visit the website of the creditors and create
log info in order to check the status of your loan, which should also be stated
on the credit report too (delinquent, forbearance, deferred). Now organize that
data.
|
Name
|
Log in
|
Passcode
|
Amt
|
%
|
Status
|
Comment
|
|
FedLoan
|
4****
|
15****
|
25000
|
5.5
|
Repayment
|
Mthly bill $25
|
|
Capital 1
|
|
|
1000
|
29.88
|
Delinquent
|
|
|
Medical
|
|
|
166
|
0
|
Delinquent
|
|
|
Student loan
|
|
|
30,000
|
5.5
|
Deferred
|
Start date Jan. 23
|
|
subscription
|
|
|
175
|
0
|
Repayment
|
|
|
Furniture
|
|
|
9,000
|
0
|
Delinquent
|
|
|
verizon
|
|
|
1,000
|
0
|
Delinquent
|
|
Before going for the big boy make a short term goal first
then go on to the long term items. So let’s talk about short term financial
goals. Short term in this case will refer to the smaller, delinquent or close
to repayment debt.
Short term debt goal( less than 5,00):
If
you can “Pay It OFF” If not you have some options. Start by organizing the debt
into categories of high urgency and low urgency. Below I have defined how I would
develop this plan.
1.
Capital
1, Medical bills, Sub, and Verizon should go first:
·
They have the smallest balances and payments
of this type are very detrimental to your credit. If the balance is not paid
after 90 days the company will sell your debt to another creditor. You do not
want to keep being sold to different companies. They will show up on your
credit report, affecting it negatively.
2.
Start
by contacting the company
a. When you contact this business
confirm they have your debt and then ask for a settlement. They are always
willing to settle, “some is better than none”.
3.
No
settlement available, well ask for a payment plan
a. Pay what you can afford most
times they will work with you, remember “some is better that none”.
b. Set up automatic drafts to keep you
on track
c.
If
possible pay your bills at the 1st of the month
d. You can even ask to set your due
date
Now you
have your short term debt plan set a due date for this goal. Goals of 10 years
for $7,000 worth of debt are unrealistic. Just think by cutting things out like
shopping and outing you can conquer your debt faster and get back to the
shopping and outings.
Just
remember every time you clear a debt keep records showing so. This way you can
always have proof if any discrepancies arise on your credit report. Need tips on
creating an organized office or don’t have an office, check out the rest of the
blog for mobile office ideas!
Now Go and Conquer that DEBT!
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