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Debt Help - Tips and Information

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HIGHLIGHTS
  • Establish a plan.
  • Know your debt help options.
  • Build a budget and commit yourself to attacking your debt, and if you cannot self-manage then get debt help fast.

Debt Help & Debt Consolidation Help to Help Solve Debt Problems (with video)

Debt Help Information

If you are in debt, you probably need to get debt help to get yourself debt free and back on solid financial footing. Bills.com can help you evaluate your debt help options, from debt consolidation loans to credit counseling to debt resolution. Many people let debt pile up and do not get aggressive about getting debt free. If you really want to get your finances back in order and your creditors off your back, you need to:

  • Establish a plan and start with a budget and a commitment to helping yourself before looking for third party help
  • If you want lower total cost or payments, know what your debt help options are
  • Start paying off your debt
  • Get a debt help savings quote

Did you know that just by calling your creditors and requesting to be on their "hardship" program that you can cut your interest rates, and sometimes even qualify for zero interest charges? Did you know that with the help of a credible debt resolution firm, people in serious debt hardship may be able to find a plan to negotiate resolutions on their debts for as little as half of what they owe? There are many tools and tips and secrets we have uncovered to help you find your own path the debt freedom.

Bills.com has aggregated all the debt help resources and information you need to start tackling your debt today. We even have a Debt Help Savings Center that will help you find the best solution for consolidating and paying down your debt, whether that is debt consolidation, credit counseling, debt settlement or other forms of debt help. Bills.com will help identify what options you have and which ones are best suited to help you tackle your debt. Browse through our articles, debt help guides, and debt relief tips and get all the information you need to get debt help.

Understanding Debt: The Impact and Options for Consumers

Comments (43)


Dean J.
Jacksonville, FL  |  February 25, 2012
My mother has been contacted by a collection agency on a credit card debt that the company says is from 2001. I looked through all 3 credit reports and the account is not listed. I just started cleaning up her finances, and it shows she paid on the debt for 6 months in 2010. I haven't been able to figure out why it stopped yet. 2 questions: 1. How do I determine if the debt is actually hers? (agency says it is) 2. Because she payed on it recently, does that mean the SOL stars new and did that make the debt hers? She won't remember paying on it, I checked her bank statements, she just follows what others tell her, that's why I'm fixing her problems now. Thanks in advance.
Bills.com
February 26, 2012
She could validate the debt, as a first step. Given how old the debt is and her lack of records, if she receives validation that she feels is not legitimate, she may have trouble proving the debt isn't hers.

I say this without blaming your mom, as she was pressured into paying on the debt, but she shot herself in the foot, when she made a payment on the debt in 2010, if the SOL had passed. Paying on an old debt can start the SOL again. If she paid on a debt that was not hers, making the payment does not make the debt her responsibility.
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Dean J.
February 26, 2012
Thank you for your reply. I went ahead and settled on their payment of a third of the "actual" debt. I will be calling the original credit card company tomorrow.

Another question in the vein of stopping this from happening again. Can I put a freeze on her credit that only lets me approve any new account, credit card or revolving account (she orders a lot by phone), to be created? When reviewing her credit reports, I found a new account that she opened without me knowing. She takes no responsibility for her debt and has proven she can't control her spending. I would like to avoid any future issues for her and myself. I currently have power of attorney for her. Thanks again.
Bills.com
February 26, 2012
Contact each of the major credit reporting agencies and place a credit freeze on your mother's credit files. This should prevent anyone, including her, from opening a new account. The freeze prevents a creditor from gathering any information from a credit bureau on the applicant. I say should prevent new accounts because there is no requirement that a creditor run a credit check on a new applicant, though virtually all do.
Kimberly W.
Lexington, SC  |  February 15, 2012
I have several derogatory accounts on my credit report that range from 2001 to 2008. Should I pay off all of the accounts?
Bills.com
February 16, 2012
Kimberly, what steps you take depend on a few different factors, including:
  • Your goals
    • Improving your credit score
    • Protecting yourself from collections
    • Clearing out old derogatory accounts to qualify for a mortgage or loan
  • The status of the statute of limitations on your debts
  • The aggressiveness of your creditors.

Old accounts should fall off your report 7½ years after your first delinquency. You can dispute items on your credit report that should no longer be appearing.

Regarding debts that are within the 7½ period, some may be past their statute of limitations. You can choose to do nothing with those and use the SOL as a defense, if any creditor tries to collect on debts past their SOL. You could also try to negotiate a pay for delete, using the fact that the SOL has passed as leverage. You can also try negotiating pay for deletes on the debts that have not reached their SOL. In either case, the creditor does not have to agree to have the item deleted, if it so chooses.

If no creditor is contacting you, reaching out to the creditor can, in some instances, bring about aggressive collection efforts.

Jennifer M.
Hillsboro, OH  |  November 04, 2011
If you have a charge off and you are sending them a payment every month and they are accepting it. But, now are saying that is not enough. But, you can't afford to pay more. What can they do.
Bills.com
November 04, 2011
I hear this question often. See the Bills.com resource If I Pay a Small Amount on My Debt, Can I Be Sued? to learn more about this issue.
Lilly N.
Richmond, CA  |  October 27, 2011
Hello, Bill. In a comparable analysis cost between legal cost to hire a lawyer and self settle down the court order with creditor,I prefer to work on my own. I have much experience to do paper work. Please advise and share information. I appreciate this
Bills.com
October 27, 2011
If I understand your question correctly, you seek advice in negotiating a settlement on a judgment. See the link I just mentioned to learn more.
Lilly N.
Richmond, CA  |  October 24, 2011
Hello, Please give me any advice to settle a court order debt about $4k My sister has business as nails. Lease finance goup llc / service of creditor machine insited her for free trial 1 month. About two wks later, she did not like it and call agent to take back the machine. They promised to come and fix the problem and never took back the machine It turned out to pass free trial deadline and got in the actual contract. Now they filed court order debt which my sister felt that no reasonable and scam I want to negotiate with the creditor or comp to settle down debt. My sister has no docs on her hand. I dont have creditor infomation on her credit report either except court order docket and where the creditor filed claim. Any advise, please help me Is that possible to settle down a court order. Possible for a payment plan? Possible to claim for a scam or fraud? How to do it? I appreciate all ideas and share information
Bills.com
October 24, 2011
Tell your sister to consult with a lawyer in her state who has experience in litigating (arguing in court) civil cases. The sooner she talks with a lawyer, the faster she can resolve the case at the lowest possible cost.
Kara H.
Malden, MA  |  October 22, 2011
A while ago i got into trouble with my credit cards when i lost my job and had no money saved up.Eventually when i got back on my feet i got help from an agency that help me settle my debt with the exception of 1 because this collection agency when we sent an offer to settle, the collection agency replied with a letter sent to them and to myself that "they were ceasing all efforts of collection regarding this account and that they contacted all 3 credit reporting agencies who they furnished info regarding this acct and ask them to delete it from their files"why they did that i have no idea becuase we were trying to settle.The problem now is that come to find out a couple days ago that they only asked 1 credit agency to delete Transunion but left it in the other 2 still showing as transferred and derogatory and now that account got sold out to a different lender who is now calling me and asking to pay for this with extra fees and interest, can i fight it with that letter? that account was not charged off until July 2006 and I believe that the statue of limitations in MA is 6yrs so technically they still can right? I told them that this account was settled so what should I do? Contact the previous lender? Send them that letter? Please give me an advice. I also noticed that some of the lenders we settled with they took it from 1 or 2 of the credit reporting agencies but not all three what is your advice?I hope you can help me. Thanks in advance.
Bills.com
October 24, 2011
I can't give you legal advice, because only an attorney can properly do so, but I will share some thoughts with you.

The language you shared from the letter you received indicates, to me, that the debt collector was ceasing collection activity, but not that the debt was settled or brought to a $0 balance. Whether or not the debt had disappeared from any or all of your credit reports would not mean that the debt no longer existed.

If some entity purchased the right to collect on this debt and is contacting you prior to the expiration of the SOL, you may have to pay the debt. You can try to negotiate a settlement or payment plan with the new collector. If you can reach an agreement (and if the debt is within the SOL and you can't prove it was settled), then you could be sued.

Regarding your other accounts, if the creditors agreed to delete the accounts from your credit report, then you need to contact them to make sure they do. If you did not negotiate a pay for delete, at the time you reached your settlements, then the debts are likely to remain on your report.
Deb D.
Memphis, TN  |  October 04, 2011
I rent in a complex that has for 3 yrs told me that under Govt orders I would not be charged any cost for early termination. Story changed now that it has occurred. I live in TN and don't want to pay the monies but know that in order to avoid a judgement, I must pay. Is there a minimum that I can pay to avoid any credit reporting?
Bills.com
October 04, 2011
With the exception of government-operated housing projects, neither state or federal law "orders" or otherwise requires landlords to assess early termination penalties on tenants who break their leases.

Consult with a lawyer who has consumer law experience, and when you do so bring a copy of your lease agreement so that he or she can read its terms and conditions.

If you cannot afford a lawyer, you have two options if you live in an urban area. Many big cities have tenants unions or similar organization that give low- or no-cost legal assistance to tenants who have a dispute with their landlord. Your other option, or your option if you live in a suburban or rural area is to contact your county bar association and ask for the names of the organizations that provide no-cost legal services to low- and no-income residents. Make an appointment with that organization, and bring your lease contract to your meeting. The lawyer you meet will advise you accordingly.
Danielle C.
Louisville, KY  |  September 20, 2011
I have paid off two items in collections on my credit report and I want to know how I can show that they have been paid/taken off my credit report. Is this possible?
Bills.com
September 20, 2011
Derogatory entries on a credit report remain for 7½ years after the date of first delinquency, regardless of the debts being paid or unpaid later. See the Bills.com resource Seven Years of History and Credit Reports for a more detailed discussion of this issue.

An exception to this rule is if the consumer negotiates a pay for delete agreement with the creditor(s).
Todd F.
Wichita, KS  |  September 13, 2011
I have an old credit card from 2005, it was bought buy a less then reputable company. I was young and in college and didn't have the money to pay it back then. Now i can an would like to pay it off, or get it removed. The problem I have now is the company that bought it is asking 5x the original amount and,has a horrible track record. So I'm a bit apprehensive about calling them. what should i do ?
Bills.com
September 14, 2011
Check to see if the statute of limitations has expired. If it has, you can just avoid paying it until it falls off on its own, approximately 7½ years after the first delinquency or you can contact the collection agency and negotiate for a pay for delete. If the SOL has expired, you have strong leverage to dictate terms, as the collector has no reasonable hope of collecting.

If the SOL has not expired and the collector has a reputation for being aggressive, it may be prudent to not call attention to yourself, if they are not pursuing you currently.
Frank S.
Perkasie Borough, PA  |  August 25, 2011
I never had bad credit until 5 years ago my Daughter was diagnosed with cancer.She needed medicine at over $1000 a week even after insurance coverage.I kept putting it on credit cards as my only option.She was in and out of hospitals for 2 years .I couldn't keep up with the interest on the credit cards and defaulted to the sum of $14,000. We bought our home in 2001 and in 10 years have never been late on a payment .my car was paid off this month again never late. Went to my bank to try to borrow the 14,000$ to pay off my creditors and they would not give me a loan despite the fact that my house is worth $180,000 and I owe less than $120,000 .I receive $3,600 a month pension also.Despite having the income and equity in our home they would not give me the home improvement loan because of my defaulted credit cards when my daughter was sick.What can I do to fix my credit.I really do not know where to turn.
Bills.com
August 26, 2011
Qualifying for a refinance is like a stool that requires three strong legs. You have equity and income, but the weak leg is your credit, as you stated. Without all three legs in good order, a conventional loan is not going to happen in today's mortgage market. There may be no immediate fix, but you should be able to build your credit to an excellent status in two years. Follow the steps we outline to improve your credit.

FHA loans have less strict credit requirements. You may also be able to provide a letter of explanation (LOX) to the underwriter, explaining how you ran up debt to cover your daughter's medical expenses. You will still need a certain credit score, but the LOX may take reduce the weight assigned to your delinquencies.
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