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MW Hammond:    Welcome to "Life After Debt with Bob Hammond"
MW Hammond:    Is there really, "Life After Debt?"
MW Hammond:    Good evening sggolfman, welcome to life after debt
MW Hammond:    Welcome deb at wr
Sggolfman:    Thanks, what is it about?
DEB AT WR:    Thanks.
MW Hammond:    How to eliminate debts, erase bad credit, obtain financing,
financial privacy, etc.
MW Hammond:    Any relevant questions or comments are welcome
DEB AT WR:    Is there such a thing as to erase bad credit other than time?
Sggolfman:    Not for me! Have a good day>
MW Hammond:    Absolutely, deb at wr.  There are several ways to erase bad
credit files
DEB AT WR:    How?
MW Hammond:    For example, you can "dispute" items you don't agree with.  They
must be reinvestigated
MW Hammond:    If after a reasonable time (30 days) the information isn't
verified, it must be deleted
MW Hammond:    Another method is negotiate directly with the creditor,  offer a
discounted settlement of th
MW Hammond:    account.  Offer to pay it if they agree to delete the negative
reference to the account
DEB AT WR:    How long does it take to show you have gotten back on track (no
slow pays) and be able to
DEB AT WR:    get a better rating?
MW Hammond:    Welcome to life after debt dma15
DMA15:    hello
MW Hammond:    It can be done in a few weeks
MW Hammond:    Depending on your situation
DEB AT WR:    What do the banks look for?
MW Hammond:    They look at several things, including ability to repay, past
credit history, stable employ.
MW Hammond:    They start with the info you include on the application (yrs. at
residence, income, employ,
DMA15:    I HAVE A LOT OF NEGATIVE ENTRIES ON MY CREDIT RPT THAT IS FALSE HOW
CAN I GET IT OFF?
MW Hammond:    Then also your credit reports from all 3 major bureaus may be
checked for negatives
DEB AT WR:    We had several years great credit, then had problems for 3 years,
things are better now but
DEB AT WR:    am anxious to get things back on track.
MW Hammond:    You have the right to dispute any item on your reports that you
believe is inaccurate, mis..
MW Hammond:    leading, or obsolete
MW Hammond:    Anything not verified must be deleted
MW Hammond:    First step is to get copies of your reports from all 3 bureaus
(Experian, Trans Union and ..
DMA15:    TRIED THAT BUT DOES NOT GET DELETED. I KEEP GOING OVER AND OVER AND
THE SAME THING SHOWS UP
MW Hammond:    Equifax.  Sometimes it takes a "strong" follow-up letter,
threatening to take legal action
Snick700:    does anyone know the http good morning america gave out about
personal financial info on web
MW Hammond:    Also, you can write directly to the creditors and tell them to
remove the "wrong" info
NRossMVP:    What did the Dow close at today?
MW Hammond:    sorry snick700, I don't know that one, but check out
www.uni-sol.com/crc
MW Hammond:    I don't have stock market info.  Sorry
NRossMVP:    Hammond, are you familiar with the Stein Roe Young Investor Mutual
Fund?
MW Hammond:    The web site I just gave gives info on disputing credit reports,
MW Hammond:    Somewhat
Snick700:    MW does it tell anything about "Your" personal fin. info?
NRossMVP:    Do you believe it is a good Fund for a teenager trying to save
money for College
MW Hammond:    Again, this particular chat show provides general info. on credit
restoration, debt negotiat
MW Hammond:    ion, asset protection, and creative financing strategies
Snick700:    OK thank you MW
MW Hammond:    Yes.  NRossmvp.  Also check out Twentieth Century Growth
DMA15:    so you think i should write to the companies to remove wrong info
DEB AT WR:    MW, just got a car loan with a higher interest rate because of the
last few years, how long
MW Hammond:    Yes. (dma15) Tell them they are adverseley affecting your
finances.
DEB AT WR:    before I can try to refinance it with a lower interest rate?
MW Hammond:    If you make major improvements to your credit profile, you can
refinance within a few months
DEB AT WR:    Do you mean by staying current on all loans and credit cards?
MW Hammond:    In the meantime, you should pay off and close as many credit card
accounts as possible
MW Hammond:    Reduce your debt to income ratio as well as dispute any negatives
you can on your reports
MW Hammond:    You can negotiate settlements with creditors to accept less than
the full amount
DEB AT WR:    I haven't checked my report, but am sure it's correct as we have
been late, always been paid
MW Hammond:    And get the creditors to mark the accounts "paid satisfactorily"
or "paid as agreed"
DEB AT WR:    but sometimes late charges.
MW Hammond:    As I mentioned b4, get copies of all 3 reports and check them for
accuracy.
MW Hammond:    Consumer Reports found a a48% error rate on credit reports
MW Hammond:    That means nearly half of all credit reports contain errors
DEB AT WR:    How long doe slow pays, (30 days) stay on your credit report?
MW Hammond:    Most negative info stays up to 7 yrs. www.uni-sol.com/crc has
info on obtaining, disputing
MW Hammond:    credit reports and negotiating with creditors
DMA15:    so request all credit reports and go through each entry and pay them
off or get up to date
MW Hammond:    That is the Citizens' Rights Council
MW Hammond:    Yes that
MW Hammond:    s correct dma15
DEB AT WR:    So 30 days is as negative as a charge off or bankruptcy?
MW Hammond:    If you don't have any good current accounts, you may need to open
a secured credit card
MW Hammond:    no, 30 days late is not nearly as bad as a bankruptcy or charge
off
DMA15:    do have to wait for rejection letter in order to get free reports
DEB AT WR:    All accounts are current and have been for about 4 months
MW Hammond:    Sometimes one or two 30 days late wont' even be counted against
you
MW Hammond:    You can also write to the bureaus and tell them you  don't have
any money and they'll send a
MW Hammond:    free  credit report
MW Hammond:    Otherwise its normally about $8 per report
DEB AT WR:    I thought with all the trouble with TRW a few years ago, you can
now get one free per year?
MW Hammond:    They just stopped doing that
MW Hammond:    last month
MW Hammond:    You can also get a free report by telling them that you have been
a victim of credit fraud
DEB AT WR:    Do certain banks report to only certain bureaus?
MW Hammond:    In other words, someone may have been using your credit
MW Hammond:    Yes, deb at wr, each bank may use one or two bureaus
DMA15:    where do get address info
MW Hammond:    Negative info may not always be reported to all 3 bureaus by each
creditor
MW Hammond:    check www.uni-sol.com/crc for info on credit bureau addresses
DEB AT WR:    What other useful info do they have at uni-sol?
MW Hammond:    They have info on negotiating with creditors and preparing for a
mortgage, etc.
DMA15:    just use letters no special forms to dispute
MW Hammond:    When you get your credit reports, they will contain a dispute
form.  Or you can just write a
MW Hammond:    letter
MW Hammond:    Be sure to include account name, number, and reason for dispute
(such as "not my account")
MW Hammond:    Never dispute by saying something like, "I was late because....."
MW Hammond:    That only confirms the fact that you were late.  Case closed.
DEB AT WR:    I know creditors use a point system to qualify, does each account
that is slow receive a poi
DEB AT WR:    nt or just 1 for all
MW Hammond:    Not quite that black and white.  Points may be relegated to
issues like yrs. on the job,
MW Hammond:    more than 3 inquiries in last 6 months, number of delinquencies,
etc
MW Hammond:    The point scoring system is described in "Life After Debt" or
"Life Without Debt" (Career Pr
DEB AT WR:    What do you mean inquiries, if you apply for a loan and someone is
checking your credit?
MW Hammond:    Yes.  Excessive inquiries can be negative.  See www.drprivacy.com
for related publications.
DMA15:    i would like to get mortgage, if i show up to payments say for the
last 6 mo. can that help
MW Hammond:    Be careful not to apply at too many places within a short period
of time.
DEB AT WR:    Is life after debt your book?
MW Hammond:    Excessive inquiries can appear as though you are desparate or
being turned down all over
MW Hammond:    Yes. Life After Debt is one of the dozen books I've written.  See
your library or book store
DEB AT WR:    I just picked it up today at the bookstore.
DEB AT WR:    Thought I recognized the name.
MW Hammond:    Great.  I hope you enjoy it.
MW Hammond:    Feel free to send me your comments or questions after you read
the book.
DEB AT WR:    Just looked through it quickly, some great info.
MW Hammond:    Thanks.  It was just updated last year.
DMA15:    so you should not apply for anything until you are sure you will not
get rejected
DEB AT WR:    Any other books you might recommend?
MW Hammond:    Well at least make sure that you've done all you can to correct
your credit records
MW Hammond:    Also check out "LIfe Without Debt" and "Repair Your Own Credit"
MW Hammond:    They are available thru www.amazon.com
DEB AT WR:    Can you write a letter to be put in your credit report explaining
some of the bad times?
DEB AT WR:    Will it help?
DMA15:    i will pick those books up
MW Hammond:    You can have a statement of up to 100 words added to the body of
your credit report
MW Hammond:    Be careful, however, of just making excuses for why you were late
DEB AT WR:    Do creditors really look at them?
MW Hammond:    Medical problems or insurance disputes can, however, provide good
justifications
MW Hammond:    They can't help but see it on the report.  Best is just to delete
the negatives
MW Hammond:    You can also add positive information to your report to
compensate for the negatives that
MW Hammond:    you can't eliminate thru dispute or negotiation
DEB AT WR:    Positive meaning current payments?
MW Hammond:    In other words, 2 or 3 new accounts with no late payments will
make up for earlier mistakes
DEB AT WR:    Do secured cards report to bureaus?
MW Hammond:    You can obtain a secured credit card or a small jewelry or
furniture account
MW Hammond:    They generally do report to the bureaus.  Ask them before you
apply though.
DEB AT WR:    I already have major credit cards, if I stay current with them, is
that the same?
MW Hammond:    Life After Debt also describes a method of adding up to 10 yrs
positive credit history
MW Hammond:    Yes.  In fact, you should probably try to pay some of these
accounts off and close them
MW Hammond:    Enough good will usually outweigh the negatives over time.
Especially over the last 2 yrs.
MW Hammond:    Many lenders don't put much weight on negatives older than 2 or 3
yrs
MW Hammond:    The older accounts are also easier to dispute and negotiate
MW Hammond:    Example, after a couple years, many banks can no longer verify
the account
MW Hammond:    That is especially true of closed accounts
DEB AT WR:    I had great until until 3 years ago, that probably doesn't show up
does it?
DEB AT WR:    Sorry, typo
MW Hammond:    ]It may still show up.  Usually the last 5 years of good credit
will show up
MW Hammond:    Unfortunately, they go back 7 to 10 yrs for negative credit info
MW Hammond:    7 yrs for most negatives, 10 yrs for bankruptcy.  Unpaid tax
liens can stay forever
MW Hammond:    Then 7 yrs after being paid
DMA15:    after 7 years shouldn't most come off without disputes
DEB AT WR:    I have been trying to paid triple payments on my credit cards,
never seems to go down.
MW Hammond:    They're supposed to be automatically deleted.  You have to check
though
MW Hammond:    I know it doesn't seem to go away. But it will in time.  Most
important is to stop adding ..
MW Hammond:    more charges.  Stop incurring all additional unsecured credit
debt
Transportu:    Hi, I have a question, but do not want to interrupt.  Let me know
when you're available.
MW Hammond:    Go for i9t
MW Hammond:    transportu?
Transportu:    I have alot of credit card debt but am trying to save at the same
time how much do I send in
Transportu:    to the cc and how much goes to the savings?
MW Hammond:    Always pay more than the minimum on your credit cards.  Figure it
like this...
MW Hammond:    Your cc debts are probably 14 to 20% and your savings is paying
about 3%, right?
Transportu:    right.
SSW13:    I KNOW 'THEY' SAY TO SAVE - BUT DOESN'T IT make more sense to pay
'all' to cc each month &
MW Hammond:    If you had 10,000 in savings (at 3%) and owed 10,000 in cc debt
(at 18%) - youre losing 15%
SSW13:    then use card if necessay?
MW Hammond:    No you don't have to pay everything to the creditors.  Keep
credit use to a minimum
Transportu:    I have $4000 in cc debt, $250 in savings!
MW Hammond:    If you can save 10% of your income each month and pay 20% toward
debts that may work.
MW Hammond:    Continue saving, but put more of your disposable income toward
the debt for now.
Transportu:    What's the first step to a good, lasting budget?
SSW13:    we tried it to clear up all debt - paid every extra $$ of payck after
monthly bills-
MW Hammond:    Once you've paid off the cc debts, then add more to savings
MW Hammond:    First step is to write out a list of all expenses and incomes
SSW13:    then chg'd only absolute necessities all month - balance came down in
a hurry!
MW Hammond:    Sounds like a good strategy ssw13.
MW Hammond:    Look at total income and expenses.  Find out what changes you can
make (percentage of budget
SSW13:    the trick was 'absolute necessities'!  movies, cd's, new clothes
didn't qualify!
MW Hammond:    In other words, look at the percent of total income going toward
each category.
Transportu:    What if your wages differ each pay period - what do you put down
for income?
MW Hammond:    That's good.  There are hundreds of ways to save on expenses
every month w/o totally changin
MW Hammond:    your standard of living.  Find cheaper ways to do the same things
(bargains, coupons, etc)
MW Hammond:    My book, "Life Without Debt" ($15, Career Press) has details on
rapid debt elimination
Transportu:    Is it at
BJ Goldie:    love your book Life after Debt. I am making progress with the
credit bureaus.
MW Hammond:    Realize that most of this financial recovery process does take
time.
Transportu:    Barnes and Noble?
MW Hammond:    Barnes and Noble, B Daltons, Waldenbooks, or www.amazon.com
SSW13:    is there a list of mw experts, theie e-mails & their pub's??
MW Hammond:    My latest book is SUPER PRIVACY:  THE COMPLETE GUIDE TO PERSONAL
PRIVACY
MW Hammond:    AND FINANCIAL FREEDOM IN TOMORROW'S CASHLESS SOCIETY ($15,
Paladin Press)
DEB AT WR:    MW-Totally enjoyed your chat tonight, lots of great infor, look
forward to it again.  Thanks
MW Hammond:    See www.paladin-press.com or www.drprivacy.com for more info.
Times about up.  :-)
DMA15:    thanks
MW Hammond:    Best wishes all.  I can be reached at mw hammond (e-mail) or
www.drprivacy.com.  Bye!
Transportu:    Thanks for the advice, I will go buy your book