A Ridiculous Credit Repair Claim
By Mike Wayman
I’m sure you’ve probably seen some pretty funny advertisements for credit repair. Some people claim to be able to give you perfect credit in 30 days or less or that they’ll guarantee you a line of credit or other financing. Perhaps they’ll even claim to handle everything themselves even filling out credit applications on your behalf. Here’s an example of a completely ridiculous credit repair claim:
So what’s the big problem with the claims made by this individual? First, this individual claims that by removing a tradeline you don’t have to pay for the remaining balance. This is patently false and will lead you towards terrible credit, or worse, bankruptcy. The second claim that this individual makes that is patently false is that “any time something that is on your credit report is not there anymore, it improves your credit score.” This is patently false as well. Having a robust credit profile that shows a positive payment history is a good thing. Deleting everything is not a good thing.
If you want someone to help improve your credit that understands the process give us a call today!
Credit Debt Trap #9
By Mike Wayman
Understanding the credit debt traps that exist and how to avoid them is extraordinarily important but understanding why these debt traps flourish on a larger scale is helpful as well. So why then are we so dependent on credit these days when just a generation or two ago debt traps were not as prevalent? The answer is that the standard of living in America is slowly getting worse, meaning, it takes far more income these days to live a comfortable lifestyle, a lifestyle without having to depend on credit to afford the basic necessities of life.
Whereas a generation or two ago most people could live on a single income it now takes a dual income household to afford basic transportation, essential healthcare and insurance and basic housing. Not even considering a mortgage, getting by these days is hard. This makes credit not only appealing to the average consumer, but a necessity.
Credit dependance is perhaps the biggest reason that people get in to financial trouble. It is the reason why so many people get behind on their payments. It is the reason why so many people have bad credit. Credit repair cannot fix the larger problem. Understanding how the system works can help you avoid financial problems and, perhaps, this is the most important thing we can all do to avoid financial problems and tarnished credit.
Getting out of the credit system is difficult but for long term security it is becoming a necessity in life. Establishing a budget, living within your means and avoiding credit by any means possible may seem difficult but it will pay off in the long term.
Credit Debt Trap #8
By Mike Wayman
How are you “sold” to other debt collectors? This is an interesting concept. When you apply for credit one of the things that many people don’t ever realize is that credit issuers have the right to sell or assign your debt for pennies on the dollar to debt collectors. This is how and why many people begin receiving collection notices from agencies that seem to have no relation to the original creditor. The worst part about this whole process is that the collectors can make far more money than the original credit issuer.
If the collector buys your debt for pennies on the dollar and you actually pay the debt the profit margins are enormous. The benefit for the original creditor is that they earn some money from the sale of your debt but they also gain a large tax break. They get to write your debt off as a loss and this really helps credit card companies decrease the taxes they have to pay. It’s a win-win for the credit industry and a big loss for the consumer.
What’s even worse is that when you have a collection, it hurts your credit in two ways. First, you have a negative tradeline from the original credit issuer. Second, you can have a collection for the same debt on your credit from the collection company. This can make the credit repair process exceedingly difficult. If you want help stopping the damage to your credit then call us today and we will help you repair your credit fast.
Credit Debt Trap #7
By Mike Wayman
Trillions of dollars are made off the backs of Americans everyday. Debt is perhaps one of the best ways for people to rake in billions, especially from people that have the worst credit. It should make sense that if you have bad credit that you’d be considered a bad credit risk and that executives at major credit companies would want to learn how to avoid extending credit to the credit challenged. Doesn’t it make sense that the credit challenged offer the worst possible return on credit? This is, unfortunately, not the case at all. In fact, its actually the opposite.
The people with the worst credit represent the most income to a major credit issuer. Late fees, high interest rates and penalties are easily assessed to people with sketchy credit and the credit companies are well aware of this. SO, does this mean that credit card companies are hoping and praying that you won’t pay off your balances in full or make minimum payments on time? I would venture to say “Absolutely Yes!”
Credit issuers don’t care about you personally and neither do the debt collectors you are “sold to” after the credit issuer realizes there’s nothing else they can get from you. The moral of the story is be very careful when applying for credit if you have a less than perfect credit history. You may very well want to consider credit repair before you apply for new credit to avoid debt traps.
Credit Debt Trap #6
By Mike Wayman
Sometimes I can’t believe the extent that people will go to make a buck illegally. This video exposes the collection industry for what it really is. These people are calling consumers posing as police officers telling people behind on their payments that if they don’t pay up they’ll be arrested and brought to Maryland where they’ll face charges and be jailed. The collectors claim to be calling from Maryland but in reality they’re calling from a Buffalo, New York.
Getting out of these debt traps can be very difficult and the damage it can do to your credit can be immense. If you think that a collection company is breaking the law call an attorney. There are attorneys that specialize in litigation against debt collectors that harass people. If you notice that a fraudulent collection appears on your credit report then you can get in contact with us and we’ll help you repair your credit.
Credit Card Debt Trap #5
By Mike Wayman
Debt traps are not all the same. Let’s say that you’ve fallen behind on debt and now you’re in collections. The collections industry is yet another level of debt trapping that is, by the admission of people in the industry, largely unregulated and the “salespeople” in debt collection often blatantly break the law just to make a buck. They call repetitively even if you’ve claimed bankruptcy. They will even continue to harass you after you’ve had an account included in a bankruptcy. One of the worst parts about these collection practices is that it can harm your credit even more after you claim bankruptcy.
Here’s how collections can hurt your credit even further after bankruptcy. There are a few creditors like auto finance companies and credit card companies that will extend credit to people after a bankruptcy has been discharged. However, one of the most important factors in determining whether or not to extend credit is if the borrower has had a late payment or collection after a bankruptcy. When you get a collection after a bk it really damages your ability to obtain credit in an effort to build your credit back up.
Collections are dangerous, collection companies are out of control and unregulated and you need to deal with collections as soon as possible to avoid problems with your credit after, during or before a bankruptcy occurs.
Credit Card Debt Trap #4
By Mike Wayman
Using credit cards is perhaps one if the easiest ways to get yourself in to financial trouble. Not only are the interest rates enormous but the penalties, late fees, and cash advance fees can really get you underwater financially really fast. One of the best ways to avoid these common financial problems is to fully understand just how much the credit card system is rigged in the favor of the credit card issuer. It’s almost as if using some credit cards is like betting your savings at a casino: the house always wins in the end.
There’s a massive amount of stories about people that have fallen in to credit card debt traps and what’s mostly interesting to me is why the credit card industry as a whole isn’t being forced to go through a massive overhaul like the home loan industry lately. While predatory home loans can have a seriously detrimental effect on the lives of consumers many people don’t think that credit cards can be equally damaging. The reality is that falling in to a credit debt trap can seriously damage your credit long term. Many people will need help repairing their credit and we are here to help if you need it.
Credit Card Debt Trap #3
By Mike Wayman
Hopefully you’ve seen the last two posts on credit card debt traps. The first was a general introduction while the second covered a bit of history. The important thing to glean from these videos is exactly how credit cards negatively affect the financial lives of American citizens and how we can all avoid debt traps. Not only are these traps financially difficult to overcome, they often lead to a negative credit rating.
Read the fine print in all of the credit applications you are considering applying for. Determining if a credit debt trap exists can only happen if you understand the terms of the credit you are applying for. While many people never stop to consider the general terms of a credit card they really should. To me, it seems like we all simply trust large credit companies because we don’t think they would engage in acts that are fraudulent, deceptive or illegal. Think again!
If you are the victim of a credit card debt trap then please give us a call. We may be able to help you remove negative credit from your credit report caused by a debt trap.
Credit Card Debt Trap #2
By Mike Wayman
If you’ve saw the last post about credit card debt traps you’ll understand how easy it is for credit card companies to take hold of you financially and absolutely ruin your credit and your pocketbook. This series is dedicated to exposing some of the most common debt traps so that consumers can avoid paying thousands of dollars in interest payments to their creditors and also avoid bad credit.
Understanding the modus operandi of the major credit companies is one of the first steps in avoiding credit card debt traps and avoiding bad credit. The real problem is that most people don’t know they’ve been scammed until it’s too late. You can avoid credit debt traps but some people may need help or advice. Call us any time if you need help with a credit debt trap or if you want to know if you can get some of the bad credit removed from your credit report due to a debt trap.
Credit Card Debt Trap #1
By Mike Wayman
People seek out credit repair for a number of reasons. Not everyone seeks credit repair because they’ve had a serious hardship in life. Some people seek out credit repair services because they’ve fallen in to a credit card debt trap. This video is part one of nine video features on credit card debt traps and the ways that people fall in to them.
If you have been victimized by a credit card scheme you may very well be able to get the negative credit taken off your credit report. Don’t let the credit card companies take advantage of you. Call Certified Credit Repair today for more information on how we can help you.
