how can i clear up my credit?
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Answers by: EMJ1219 | Justin Lilly | Don Miguel de los Platanos | Velvolver
Well the advice I would give would be relative to your particular situation. If you are just getting by, a debt consolidation company could definitely help. However in my case, they would not even help. This is because you need to have some positive cash flow to be part of those debt services. If you are like I was, in the hole every month - they will turn you down.
My advice to you is to make sure you keep your payments current. Even if that means paying $20 a month per bill. They cannot refuse you. You won't incur the late cost, but your balance will definitely rise. The saving grace in this is, you get a chance to maybe catch up on other more important bills. You cannot be taken to court over not making payments.
Your debts are only good for 7 years, if they do not collect them within that time, the debt is completely wiped off. What kills your credit is usually not paying things and it going to collection. Sometimes this is not a bad thing because you can negoitate with the collection agencies and get what was a $1200 balance to a $700 one if you somehow manage to find $700 dollars you can spare.
I've been on the verge of bankruptcy, however it was not the right option for me. I'm glad I stuck it out and while it took many years to finally clear things up, I was able to do it. Your credit will still be in a not so favorable state for a couple of years but eventually it will clear out granted you manage to get your debts under control. I thought I would have the worst credit in the world, since I had like 3-4 items in collections, tons of late or no payments, and even court. Yet, when I checked my score it was decent enough for me to get a car with little to no credit. My advice to you is to not give up, and be prepare for the long haul to recover your credit.
"You cannot be taken to court over not making payments."
Revised:
You cannot be taken to court over not making full payments. As long as you contribute something, you are good.