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Tip of the Week
Before your finances fall into the bankruptcy category, you can take steps to help turn your bad credit around. Just ask James Cheslek, dean of academic affairs at Brown Mackie College - Albuquerque. Cheslek is a retired corporate and trial law attorney who helps college students with bad credit get back on track.
"If you want to be successful, it is important to not let credit card debt get out of control," Cheslek says. "Many people get frustrated because their credit is not up to par. They don't realize how easy it is to fix. It may take some time, but it is doable."
- Step one: Request a free copy of your credit report. Every American is entitled to a free copy of their credit report under the Fair Credit Reporting Act (FCRA). Each of the three reporting agencies - Equifax, Experian and TransUnion - is required to provide it once every 12 months, if you ask for it. To order your free copy, visit annualcreditreport.com, or call (877) 322-8228.
- Step two: Read your credit report carefully for inaccuracies. "Spend some time figuring out what all the symbols mean. Learn what's good and what's bad," Cheslek says. "Reporting companies get information from creditors. They simply take the information and add it to your report."
- Step three: Dispute inaccuracies. The FCRA further states that a reporting agency must correct any inaccuracies on your report. To dispute an item, notify the reporting agency of the inaccurate information. "They must investigate by forwarding your information to the company that provided the disputed item," says Cheslek. "When any information proves incorrect, the FCRA calls for all three reporting agencies to remove it from your credit report."
- Step four: Request verification of debt. The Fair Debt Collection Practices Act (FDCPA) gives consumers rights against debt collectors. "Here's the deal," Cheslek says. "Debt collectors buy old debt for pennies on the dollar. They call and tell you they are collecting on behalf of another company. However, the company that originated the debt has written it off and retired the file." This may be the best-kept secret in America. The FDCPA entitles you to write to the original company and ask for verification of the debt. They have 30 days to complete the process. Usually, they can't find the file or verify the amount," says Cheslek. "You may need to send follow-up letter to the credit reporting agencies to say, 'Take this off.'"
The Better Business Bureau has seen a 42 percent rise in complaints against credit card processing services and advises business owners to do their homework before choosing a merchant processor.
"Accepting credit cards can be one of the options available to customers along with using a debit card or writing a check. By offering these options businesses are opening the door to increased revenue," said Steve J. Bernas of the Better Business Bureau. "However, before selecting your merchant processing service, it's imperative that you do your research to avoid putting your business and its success at risk."
The BBB offers the following advice when selecting a merchant processing service:
- Ask around.
- Know where to turn.
- Try them out.
- Sign a "month-to-month" agreement.
- Get a large list of references during the proposal process.
- Make sure every penny you spend is necessary.
For more information, visit www.bbb.org.
According to an article on Yahoo Finance, here are five things that likely will get cheaper in 2012:
- Consumer electronics
- Text-message plans
- Travel to Europe
- Interest rates
Number to Know
3.4: Percent increase in sales at the major chain stores in December over 2010, according to Thomson Reuters.
Online encyclopedia Wikipedia reported that it raised $20 million from 1 million donors in its most recent fundraising drive.
GateHouse News Service