If you are going to start the Sky Blue Credit Repair program we suggest you wait until we have reviewed your credit reports before attempting to settle a debt. During our review process we will investigate the statute of limitation for the debt. Read More »
Congratulations on paying off the debt. You did a good thing! A collection with a zero balance is better than a collection with an outstanding balance. However, as you noticed, there can be a temporary negative effect on your credit scores. Read More »
Congratulations on your credit repair progress so far! You are right in thinking about negotiating your remaining debt at this point. But before discussing the best way to move forward, let’s review the steps we have taken in the credit repair process to get you to the point that you are able to do this. Read More »
There are two answers to your question. On one hand, nothing can, or should, get rid of the legitimate, accurate debt on your report; credit repair is not about wiping out accurate information. Read More »
Credit Repair and Debt Negotiation
Debt negotiation is a useful companion to your credit repair service and an art unto itself. Before you consider contacting a creditor or collector to discuss the possibility of settlement you should take appropriate steps to determine the validity of the subject account.
Too many people starting credit repair programs attempt to negotiate with the collectors reporting on their credit reports. In a surprising number of cases the collectors represented on your credit report no longer own the debt. And it happens quite often that collectors will accept money for debt that has been sold to other collectors. If this happens the new collector is likely to appear before long, and legitimately so.
Prior to starting debt negotiation all collections should be scrutinized. Any collector that has sold a debt is supposed to cease reporting, and yet they rarely comply. All questionable collections should be disputed with the credit bureaus with the intention of removing erroneous accounts. Once the invalid accounts are gone you must note the original default dates for the original debt and calculate the statute of limitation.
Once an account is beyond the statute of limitation the collector can no longer enforce collection through the court system. When a collector understands that you are aware of the expired statute of limitation they should be very willing to negotiate. There are other factors that can influence the negotiability of debt including the dollar amount of the debt and the industry.
Before starting the debt negotiation phase of your credit repair program do your homework. Eliminate all invalid accounts, research the statutes of limitation, and plan your negotiating tactic. A smart strategy can save you lots of money!