Clearing The Cobwebs of Debt

For years now, I've been weighed down by debt. Overall, I don't have very much debt compared to many of my friends and family. However, because the debt has been sitting on my credit report unresolved it has negatively affected my credit rating and my life in so many ways. Now, I am willing and ready to face the debt and make room for growth and progress in my life.

I can't recall how many times I have thought about wanting to buy something, a home, condo, car or any number of things only to be defeated by the ugly monster called my credit score. It all started when I was 17 and entered University. I didn't know anything about life or responsibility, yet I was thrust into the young adult world of a 36,000 student school. Because I registered late, when I arrived my financial aid wasn't ready, I had no money to buy books. I tried copying pages from classmates textbooks but that didn't work out too well. I quickly fell behind in my studies and thus began my downhill slide. By the time my financial aid arrived in the late fall, I was failing classes and took the money to shop with. My first major mistake. I could possibly have salvaged the semester but made a foolish choice and ended my time in college rather quickly.

Over the years, my mother co-signed for my first car and I didn't pay the car note. Once I didn't pay my rent on an apartment and was evicted even though I was bringing home 4 times the rent in monthly take-home income. I was even approved for an unsecured credit card and quickly f*cked that up!

I finally have realized that all these years I have been afraid of success. Even though I secretly lusted after material possessions and the peace of mind having savings and investments can bring, I must have somehow thought that I was unworthy of that peace. Now, I am ready. I am ready to clean up my debts, rebuild my credit history and enjoy the advantages that having an excellent credit history can provide in this country. It's taken nearly 39 years and a lot of bumps and bruises along the way. But I thank God for allowing me to finally be ready to live my best life.

I'm going to order copies of all three credit reports. Then, I will write to each vendor and ask that all debts 7 years or older be removed from my credit report. In my case, this should clear up a substantial number of old accounts that are weighing down my credit score. For other accounts, I will write to the vendors and negotiate settlement amounts. Typically, you can negotiate settlement amounts for pennies on the dollar of the original debt. Finally, I will open three secured credit cards and make on-time monthly payments on them. This will help me to rebuild my credit score and in combination with the systematic removal of old debt from my credit report, my credit score will quickly rise. In 1-2 years (or possibly less), I want to have a 790-850 credit score. A credit score in that range will allow me to buy a house or car at the best available interest rates and I will also be eligible for the lowest interest rates on credit cards.

I also have negotiated payment arrangements on my old student loans. Defaulted student loans are NEVER removed from your credit report. You must pay the loans off. Since I am planning to return to college and finally complete my degree this fall, I will make 6 months of payments, then I will be eligible for a 10-year deferrment of my old student loans. (Call the US Dept. of Education for more details and to make payment arrangements 800-621-3115). In addition, I have successfully negotiated to have over $5,ooo of penalty and late fees removed. This will substantially lower my overall student loan debt.

We have all made mistakes in life. Mine was not being responsible and accountable to pay my debts. Now, I have made the healthy decision to face my debt crisis and work my way out of this mountain of debt. I know that it can be done and I can't wait to see how my life will improve in all areas as a result. I am becoming a more responsible person and this will make me more well-rounded overall.

(I pray that my sharing my most intimate secrets has helped at least one person).

peace always,

strong