Nobody wants to go through the pain and stress of divorce. Sometimes, life just hands us only an option. Divorce marks a new phase in your life, a recovery period. To save yourself another unending paid you may need to assess your credit line to determine the status. Rebuilding your credit post-divorce requires you to be able to hold down a job and have a steady inflow of income. That’s when you can now think of rebuilding whatever is left of your credit. We are not talking about Alimony and Child Support here (even though they count), but an income that meets your monthly expenses. With an income in place, then let’s get to work!
Look into Your Credit Report and Credit Score.
A knowledge of where your credit stands and what has dredged a whole into it will help know where to start. Request your credit report from all of the three credit reporting bureaus and peruse it carefully and thoroughly. You may need the professional assistance of credit repair experts to ascertain the status of your credit. With your credit score in your view, you will know what to do or not to do.
Deal With Joint Debts that Ties You and Your Ex-Spouse.
You just have to overlook your differences and take care of those debts you accrued with your ex-partner. Regardless of whether the judge rules that the debts were as a result of his/her action, it will still affect your credit history. Restructure your debts during the divorce proceedings, the debts you are responsible for should be in your name. While the others you are not responsible for bears the name of your ex-spouse.
Never Apply For New Credit Without a Change of Last Name.
This applies to the wife, and it’s crucial. You can revert back to your maiden name before opening up new credit line. Put a call or email through to your existing creditors informing them of your change of name. Let me break your heart a bit, a change of name will not erase your credit history. What it will do is to prevent you from having a future ravaged by past history of credit.
Attend to Bills You Can’t Pay
Depending on which side of the fence you are, paying your bills during the early days of divorce could be pretty difficult. This is where financial professionals come in to assess your budget. You may decide to visit a Credit Counselling Agency to help determine the severity of your finances. It may mean you have to file for bankruptcy.
Apply For Credit Independently.
You need to apply for a new credit line and it should in your own name. Building a good credit score is to handle credit responsibly through your actions. Ensure you make payment promptly and on time. 30% is the ideal limit to keep your credit card balance. Building credit post-divorce is to apply for credit and never delay payments.
You can only recover from gambling addiction after realizing it is a problem and must be dealt with. Gambling is an addiction that could push your credit into a mundane position. It is not uncommon to see a gambling addict with tens of thousands in debt, bills left unpaid, credit facilities used to their limit and borrowing from loved ones. In the end, there is a stack of credit waiting to swallow you up if not taken care of. Let’s assume you’ve realized you’ve been the biblical prodigal son and you are on your way to recovery, you will definitely regain your financial strength. It may take a bit of effort and time, and may look like it will swallow you up, don’t allow it.
Treat Your Addiction
Gambling is an addiction and until you find a means to lose your mind from it, you’ll always find yourself in it every time. You cannot rebuild your credit without solving this problem, it will always come back to you. For the benefit of your finances, yourself and loved ones, evaluate critically if gambling in Las Vegas is a problem. If possible talk to a professional to assess your psychological mindset. Even by yourself, you can know if you’ve ever used up money meant for grocery or utility bills on gambling.
What’s The Level and Magnitude of Damage?
You need an answer to this question, carry out a thorough assessment of the level of the financial derailment. Financial recovery can only occur if you can carry out an honest review of all debts that need to be sorted out. It can be quite difficult but it’s still essential and of importance to your financial recovery. If you are married, you can sit down with your partner to look through what your gambling addiction has cost you. It will be fearful to know how much you owe and you may be looking for a means to shove it aside, the time is now!
Look at The Big Picture
No need dwelling on the past too much anymore, it will drag you back. Look away from the financial situation you are at this present time and think of where you’ll want to see yourself in 5 years. Don’t be discourages by the impracticalities of this occurrence. Create goals you want to achieve and being financially independent should be on top of such list. This is more like creating a budget to recover whatever you’ve lost. This can only happen after a thorough financial assessment has been carried out. It’s time to now start charting your way out of the situation.
Consult Professionals to Help Your Credit Repair
You cannot do it alone, this is where financial professionals with experience of what you’ve been through can come in to help. Aside from visiting support groups like Gamblers Anonymous, seek a credit repairer to help wash off the dirty credit situation. Don’t hide your situation from them as they have the means to salvage the damage.
Photo Credits: Pixabay.com
Medical debt is financially and emotionally tasking; more so than most other types of debt, but there are ways to manage it before it gets out of hand. All you need is the right attitude and the relevant information to work your way right through it.
Medical debt almost always follows an unexpected injury or illness, and bills can be overwhelming when you’re trying to focus on your health. Even if you have health insurance, a brief stay in a hospital can leave you with large and burdensome bills. Chronic or serious health conditions can wipe out your savings swiftly and put you in debt for years to come.
In addition, legal complications resulting from medical debt can severely the financial well-being of your family. Medical debt is fast becoming one of the leading causes of consumer.
But if you’re in medical debt, you’re far from alone. One study found 40 percent of American adults have had problems repaying medical debts.
Dealing with Medical bills
When tackling medical debts, you may have to deal not only with doctors and hospitals, but also with your health insurance company and even an army of debt collectors. Some medical establishments are quite aggressive about collecting debts and may even sue you or try to convince you that you can’t seek further medical treatment if you owe them money.
When you receive your bill, you must first make sure it’s accurate. Look for overcharges, or charges for care and services you didn’t receive. If you find any errors, contact the billing office to have them fixed promptly.
Remember that your bill may be negotiable. Speak with your services to try to work out a lower total; your provider may be able to cut fees, for example.
You can also try to work out a payment plan with your doctor or hospital. In a way, you’ll be agreeing to make on an unsecured debt just like credit card debt. You’ll be responsible for monthly payments of a certain amount, and you may be charged predetermined fees of interest.
How can medical bills damage your credit?
Many patients don’t realize how easy it is fir a medical bill to damage their credit. They don’t understand that:
- Even if you are making payments on a medical bill, it may be sent to collections. (It’s a common misconception that if you pay something, they can’t send the debt to a collection agency. That’s not true.)
- Medical bills sometimes turn up in collections before the patient even gets a bill. At that point, the damage may have been done.
- Collection accounts are usually damaging, regardless of whether they are medically related. (More on this in a moment)
- Paying the collection agency may not fix your credit. In most cases, those accounts are reported for 7.5 years and are not often very damaging – paid or unpaid. (See the caveats below)
- The size of the debt is not as important as the status of the debt. In other words even a relatively small bill that winds up with a bill collector can harm your credit scores.
It is critical that you review your credit reports annually and monitor your credit scores on a regular basis. (Think of it as a checkup for your credit health) you can get a free credit report summary and score, update monthly, at Credit.com. One survey by Credit.com found that 10%of those who reviewed their credit reports discovered a collection account they didn’t know about.
Will a Medical debt in collections Really Hurt My Scores?
You have many different credit scores, not just a single one. (Even among FICO scores, there are many different versions.) The newest version of the FICO score, FICO 9 — ignores paid collection accounts, and medical collection accounts carry less weight under that model. Vantage score 3 also ignores paid collection accounts of all types.
But most lenders still use older versions of credit that do not give medical collections any special treatment. For that reason, you should assume that if you find a collection account on your credit report, it will likely be viewed negatively when you apply for credit, insurance or employment.
So what can you do?
Before one of this bill winds up in collections, to the extent possible, try to be very proactive about your medical bills. Even if you have good health insurance, don’t assume everything will be taken care of. Review your EOBs (Explanation of Benefits) carefully and contact the provider and/or your insurance company quickly if it’s not being taken care of.
If you are contacted by a collection agency about a medical bill, ask them not to report it if you pay it right away (assuming you believe you owe the bill). Some won’t report the bill is resolved quickly.
Again: Having a collection account updated as “paid” generally does not help your scores, unless a lender is using one of the newer credit score versions. So aim for removal of the item if possible. Some agencies will work with you, others won’t.
When you feel unfairly treated
If you feel the situation is highly unfair — you never got the copy of the bill, for example — you can try two things. One is to file a complaint with the Consumer Financial Bureau. The other is to contact the original provider and try to get them you pull it back from collections so you can pay them directly. If they do, the accounts will usually no longer be reported.
If you are contacted by a collection agency and you don’t believe you owe the bill, you have the right under the federal Fair Debt Collection Practices Act to ask the collection agency to validate the debt. You also have the right under the Fair Credit Reporting Act to dispute with the credit reporting agencies reporting the account.
First things first: don’t get discourage. It would be easy to stash away your medical bills in a drawer, or sit them far back on a shelf to collect dust, but the fact is that these bills won’t disappear. And most importantly, you are much, much more likely to receive financial assistance if you work with the provider before the bill is sent to a collection agency.
Luckily, there are many steps that you can take to help your situation and potentially even lower your outstanding bills!
Set up a payment plan
Regardless if you were able to negotiate a longer overall balance or not; providers know that a huge medical bill broken down into small, manageable payment is much more likely to be paid off; so call the provider and ask if they can set up an interest free payment plan. It’s important to speak to the right person and let them know of your situation; and that you’re trying to pay off your debt but lack the income to do so right away.
Tip: Keep in mind that someone who is simply sympathetic to your situation can’t help you – be sure to speak to someone higher up in the billing department directly for the most assistance.
The bottom line is that medical emergencies are never planned, but are always costly. Lucky for you, there are countless resources are available to help you negotiate and even lower your bill; as well as ET up payment plans. Don’t let your bills overwhelm you. As dim as the situation may seem, you can work your way out of it![contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]
Photo credits: Pixabay.com
How to fight your credit debts and win
M?d???l d?bt ?? f?n?n???ll? ?nd ?m?t??n?ll? t?sk?ng, m?r? ?? th?n most other t???? ?f debt, but there ?r? w??? t? manage ?t b?f?r? it gets ?ut of hand.
M?d???l debt ?lm??t ?lw??? f?ll?w? ?n un?x???t?d ?njur? ?r ?lln???, ?nd b?ll? ??n b? overwhelming wh?n ??u’r? tr??ng t? f??u? ?n your h??lth. Ev?n if ??u h?v? health ?n?ur?n??, a br??f ?t?? ?n a h????t?l can l??v? you w?th l?rg? ?nd burd?n??m? b?ll?. Chr?n?? or ??r??u? h??lth ??nd?t??n? can wipe ?ut ??ur ??v?ng? ?w?ftl? and ?ut ??u ?n debt f?r years to ??m?.
In ?dd?t??n, l?g?l ??m?l???t??n? r??ult?ng fr?m medical d?bt ??n severely impact th? financial w?ll-b??ng ?f ??ur f?m?l?. Medical debt is f??t becoming ?n? of th? l??d?ng ??u??? ?f consumer.
But ?f ??u’r? ?n m?d???l d?bt, you’re f?r fr?m ?l?n?. On? ?tud? found that 40 percent ?f American ?dult? h?v? had ?r?bl?m? r?????ng medical d?bt?.
Dealing with M?d???l B?ll?
When t??kl?ng m?d???l debt, ??u may h?v? t? d??l n?t ?nl? w?th doctors and h????t?l?, but ?l?? with your h??lth ?n?ur?n?? ??m??n? and even an ?rm? of d?bt ??ll??t?r?. Some m?d???l ??t?bl??hm?nt? ?r? qu?t? aggressive ?b?ut collecting d?bt? and may even ?u? ??u ?r try t? convince ??u th?t ??u can’t seek furth?r medical tr??tm?nt ?f ??u ?w? them m?n??.
Wh?n ??u receive ??ur b?ll, you must first m?k? ?ur? it’s ???ur?t?. L??k f?r ?v?r?h?rg??, or ?h?rg?? for ??r? ?nd ??rv???? ??u didn’t r????v?. If you find any errors, ??nt??t th? b?ll?ng ?ff??? t? have th?m fixed ?r?m?tl?.
R?m?mb?r that your bill m?? b? n?g?t??bl?. S???k w?th your service provider t? try to w?rk ?ut a lower t?t?l. Y?ur ?r?v?d?r m?? be ?bl? t? cut fees, for ?x?m?l?.
You can ?l?? tr? to work ?ut a ???m?nt ?l?n w?th your doctor ?r hospital. In th?t w??, ??u’ll be ?gr???ng t? t?k? on ?n unsecured d?bt ju?t l?k? ?r?d?t ??rd d?bt. You’ll be responsible f?r monthly ???m?nt? ?f a ??rt??n ?m?unt, and you m?? be charged ?r?d?t?rm?n?d fees ?r ?nt?r??t.
Many ??t??nt? d?n’t r??l?z? how easy ?t ?? f?r a m?d???l bill to d?m?g? th??r ?r?d?t. Th?? d?n’t und?r?t?nd th?t:
Even if ??u ?r? m?k?ng payments ?n a medical b?ll, ?t m?? b? ??nt t? ??ll??t??n?. (It’s a ??mm?n m????n???t??n that if ??u ??? ??m?th?ng, they ??n’t ??nd th? d?bt to a ??ll??t??n ?g?n??. That’s not tru?.)
M?d???l b?ll? ??m?t?m?? turn up ?n collections b?f?r? th? ??t??nt ?v?n g?t? a b?ll. At that point, the damage may h?v? b??n d?n?.
Collection ????unt? are u?u?ll? d?m?g?ng, regardless ?f wh?th?r th?? are medically r?l?t?d. (M?r? ?n th?? ?n a moment.)
P???ng th? collection ?g?n?? m?? n?t f?x ??ur ?r?d?t. In most ?????, th??? ????unt? ?r? r???rt?d f?r 7.5 years ?nd ?r? ?ft?n very d?m?g?ng — ???d ?r un???d. (S?? th? ??v??t? below.)
The size ?f th? d?bt is n?t as important as th? ?t?tu? of th? d?bt. In ?th?r words, ?v?n a r?l?t?v?l? ?m?ll bill that winds u? with a b?ll collector ??n harm ??ur ?r?d?t ???r??.
It is ?r?t???l th?t ??u r?v??w your ?r?d?t reports ?nnu?ll?, ?nd m?n?t?r your credit ???r?? ?n a regular b????. (Th?nk ?f it ?? a ?h??ku? f?r ??ur credit h??lth.) Y?u can g?t a fr?? ?r?d?t r???rt summary ?nd score, u?d?t?d m?nthl?, ?t Credit.com. One survey by Credit.com found th?t 10% ?f those wh? reviewed th??r ?r?d?t reports d????v?r?d a collection ????unt th?? didn’t kn?w ?b?ut.
W?ll a Medical Debt ?n C?ll??t??n? R??ll? Hurt My Scores?
Y?u h?v? many d?ff?r?nt credit scores, n?t just a single ?n?. (Ev?n ?m?ng FICO scores, there ?r? m?n? different versions.) Th? newest version ?f th? FICO ???r?, FICO 9 — ignores ???d collection accounts, and m?d???l collection accounts ??rr? l??? weight und?r that m?d?l. V?nt?g?S??r? 3 ?l?? ?gn?r?? ???d collection ????unt? ?f ?ll t????.
But m??t l?nd?r? ?t?ll u?? older versions of ?r?d?t ???r?? that do not g?v? m?d???l collections ?n? ??????l tr??tm?nt. F?r th?t r????n, ??u ?h?uld ???um? th?t ?f ??u find a ??ll??t??n account ?n ??ur ?r?d?t r???rt, it will l?k?l? be v??w?d n?g?t?v?l? wh?n you ???l? for credit, ?n?ur?n?? or ?m?l??m?nt.
S? what ??n ??u d??
B?f?r? ?n? ?f th??? b?ll? w?nd? up in collections, to the extent ?????bl?, try t? be v?r? ?r???t?v? ?b?ut your medical bills. Even if ??u h?v? g??d h??lth ?n?ur?n??, d?n’t ???um? everything w?ll b? taken ??r? ?f. R?v??w ??ur EOBs (Explanation of B?n?f?t?) carefully and ??nt??t th? ?r?v?d?r and/or your ?n?ur?n?? ??m??n? qu??kl? ?f ?t’? not b??ng taken ??r? of.
If you ?r? ??nt??t?d by a ??ll??t??n ?g?n?? ?b?ut a m?d???l bill, ??k th?m n?t t? report ?t ?f you ??? it r?ght away (assuming ??u b?l??v? you owe th? b?ll). Some won’t r???rt if the b?ll ?? resolved quickly, this will help your credit score.
Again: Having a ??ll??t??n account u?d?t?d ?? “paid” g?n?r?ll? does n?t help your ???r??, unless a l?nd?r is u??ng ?n? of th? newer ?r?d?t score v?r???n?. S? ??m f?r removal of th? ?t?m if possible. S?m? agencies w?ll work with you, others won’t; for the sake of your credit score, it is worth trying.
If ??u feel th? ??tu?t??n ?? h?ghl? unfair — ??u n?v?r g?t a ???? ?f th? bill, f?r example — you ??n tr? two th?ng?. On? is to file a ??m?l??nt with th? C?n?um?r F?n?n???l Pr?t??t??n Bur??u. The other ?? to ??nt??t th? original provider and try to g?t them t? ?ull it b??k from ??ll??t??n? ?? ??u can pay them directly. If they d?, th? account will usually no longer b? r???rt?d and your credit score will not be affected negatively.
If ??u ?r? ??nt??t?d b? a ??ll??t??n ?g?n?? ?nd ??u d?n’t b?l??v? you owe th? bill, ??u h?v? th? right under the federal F??r D?bt Collection Practices A?t t? ??k th? ??ll??t??n ?g?n?? to v?l?d?t? th? d?bt. You ?l?? h?v? th? r?ght under th? Fair Cr?d?t R???rt?ng Act to d???ut? ?t w?th th? credit r???rt?ng agencies r???rt?ng the ????unt.
First th?ng? f?r?t: d?n’t g?t d????ur?g?d. It w?uld be ???? t? ?t??h ?w?? ??ur m?d???l b?ll? in a drawer, ?r ??t th?m f?r b??k ?n a shelf to collect du?t, th? f??t is that these bills w?n’t d???????r. And m??t ?m??rt?ntl?, ??u are mu?h, mu?h m?r? l?k?l? t? r????v? f?n?n???l ?????t?n?? ?f you work with the ?r?v?d?r b?f?r? th? b?ll ?? ??nt t? a collection agency. Lu?k?l?, there ?r? many ?t??? that ??u ??n t?k? t? h?l? ??ur situation ?nd ??t?nt??ll? ?v?n l?w?r ??ur ?ut?t?nd?ng b?ll?!
S?t U? a P??m?nt Pl?n
Regardless if you were able to n?g?t??t? a l?w?r ?v?r?ll balance ?r n?t, ?r?v?d?r? kn?w th?t a huge m?d???l b?ll br?k?n d?wn ?nt? ?m?ll, manageable ???m?nt? ?? much m?r? l?k?l? t? b? ???d ?ff, so call th? ?r?v?d?r and ask ?f th?? can set up ?n interest fr?? payment plan. It’s ?m??rt?nt to ????k t? th? r?ght ??r??n and l?t th?m kn?w of ??ur ??tu?t??n, and th?t you’re trying to pay ?ff ??ur d?bt but l??k th? income t? d? so r?ght ?w??.
T??: Keep in m?nd th?t ??m??n? wh? is simply ??m??th?t?? t? your ??tu?t??n ??n’t h?l? ??u – b? ?ur? t? speak to ??m??n? higher up in th? billing d???rtm?nt d?r??tl? f?r the most ?????t?n??.
Th? bottom l?n? is th?t m?d???l emergencies ?r? n?v?r planned, but ?r? ?lw??? costly. Lu?k?l? f?r you, th?r? ?r? countless r???ur??? ?v??l?bl? to help you n?g?t??t? and ?v?n lower ??ur bill, ?? w?ll ?? ??t u? payment ?l?n?. D?n’t l?t ??ur b?ll? overwhelm ??u. A? dim ?? the situation m?? seem, ??u can w?rk your way out of ?t!
If you feel the need to have a credit repair company have a look at your any financial case, you can reach out to us today!
If you feel the need to have a credit repair company have a look at your any financial case; you can reach out to us today![contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]