Tag: Debt

02 Aug 2017

Facing A Debt Collector

Know your rights when dealing with a debt collector

At any given time during the day, a person is receiving a call from a debt collector while pressing the deny button at the same time. As a person who once received those calls, I definitely can understand the fear of answering the call to know who is on the other side.

I am here to tell you, do not let fear keep you from answering this call. As a consumer, you have RIGHTS! Most times though consumers do not understand their rights dealing with a debt collector. Never let a debt collector bully you into paying a debt that you are questioning; always keep calm and know your rights.

Your Rights:
  • Debt collectors are prohibited from using abusive, unfair or deceptive practices to collect. This includes threats, using profanity, false statements. Agents are not allowed to say that consumers will be arrested if collections are not paid, seize/garnish property or wages unless permitted by law; or threaten legal action will be taken.
  • Never let what a debt collector is saying frighten you. You have the right to request debt validation, and the collection agency must send the notice within 5 days. This does not include a settlement offer, this will need to be actual documentation of the debt owed including the name of the creditor owed, and the amount owed.
  • Do not give a debt collector bank account information; or debit card information without requesting validation first. If proper debt validation is received, set a payment term that is agreed to by both parties. Always get the agreement in writing.
  • If the debt is owed. A debt collector is still required to provide debt validation; properly collect the debt, and abide by agreements set.

Take Control Dealing with a Debt Collector

Keep in mind even if the debt is paid; does not mean the account will not be added as a paid collection to the credit report or if the account has already been added that it will improve the score. If the agreement is made that it will not be reported as a collection account, make sure to get it all in writing before paying the debt.

Never give into the fear and pay the debt; then realize you have not even paid off the debt. These debt collectors will try all tactics for it to be paid; never even sending the paid in full receipt for the debt if it is paid. Remember your rights at all times!

If you have questions regarding the Debt Collections Practice Act, please feel free to contact our office at (888) 324-2504

07 Jul 2017


Let’s be honest; credit cards can be a scary. The idea of allowing yourself to get into uncontrollable debt can be very intimidating. A lot of people will avoid credit cards all together just to prevent the temptation. If this is you, when it comes to your credit, you have to face your fears and learn self-discipline. The best way to build your credit is through a credit card. Credit cards are a perfect way to show lenders your ability to repay borrowed debt. And ultimately, that you are responsible enough to have access to money without utilizing it.

Not all credit cards are the same.

  • When I say credit card, I don’t mean a retail or store card. EX: Bealls, Target, Victoria’s Secret, Walmart, etc. It is in your best interest to obtain a major credit card that reports to all 3 of the credit bureaus (Experian, Equifax, TransUnion). If you obtain a credit card that only reports to one or two of the 3 major bureaus, you are only helping one or two of your credit scores.

It is best to keep your credit card(s) at a zero balance.

  • Since your debt accounts for 30% of your credit score, it is ideal to keep your credit cards at a zero balance. However, keeping your cards at zero for too long can eventually cause the account to close; which coincidentally can also lower your credit score. The main reason you would want to have a  non-retail credit card is the account will stay open longer at a zero balance. This makes it much easier to maintain and manage the account. If you are not using a store’s credit card, you’re not making them any money, and they will close your account. A major credit card will allow you to not carry a balance typically for about 12 months before considering to close your account.

You DO NOT have to carry a continual balance for your account to be considered active.

  • If you’re thinking of getting a credit card and cutting it up to stop yourself from using it, don’t. There has to be occasional activity on the account for it to remain open. However, you do not have to have a constant balance to keep your account open. I would suggest putting gas or charging a small amount every 9 months or so then immediately pay it back. This will ensure your account stays active.

So, to sum it up:

  1. For overall good credit, you DO have to have a credit card.
  2. You need a credit card that reports to ALL 3 Bureaus.
  3. It is best to keep your credit cards at $0
  4. You DO have to use the card OCCASIONALLY to prevent the account closing.


If you need to establish a credit card, we recommend this website.