Reversing Credit Problems
How to Pay Off Collections

Reversing your credit problems is possible. Here are 10 simple ways to pay off collections, improve your credit rating, and move on with your life. Last year when my friend Wilson called me about his credit, this is what I told him. There are ways to improve credit. But skip a step and you'll probably find that collection back in your life within a couple of years.

Ten Basic Steps to Better Credit

Repairing a bad credit history doesn't have to be hard. Isn't it worth your time to take a few moments and learn how to repair yours, once and for all?

Ask Kate about fixing bad credit the right way!
  1. Starting right now, pay your regular bills on time even if you only pay the minimum payment.

  2. Don't stick your head in the sand. Open your mail. Daily!

  3. Stop making excuses. Acknowledge that you are fixing bad credit because you have not paid back money you borrowed.

  4. Set up a system for repayment to avoid getting overwhelmed. One method is to pay the collections with the smallest balances first.

  5. Create a log, adding the name of each collection agency and phone number as you call. Use it to keep track of who says what.

  6. Request that each creditor calculates your final amount owed. Sometimes they will offer a deal if you pay in full by a certain date.

  7. Get in writing the final amount owed before you pay. This becomes your receipt of payment in full, just in case they do not report it to the credit bureaus.

  8. The receipt must include your name, the account number, the amount owed and PAID IN FULL if paid by a certain date.

  9. Request and retain a copy of the payment whether you pay by money order, personal check, certified bank check or wire the money. Get copies of both the front and back sides.

  10. Protect your credit by monitoring it. Find out how at Wilson Discovers Credit Report Monitoring!

How to Guard Your Credit Rating

Wilson also learned the secret to maintaining good credit. Last year, paying old collections improved Wilson's credit score ratings. This year, credit report monitoring helps keep Wilson's credit score ratings strong and healthy.

When it comes to peace of mind and security, you should be taking care of your credit too! Ask Kate how.

Affordable (and Guilt-Free) Home Decor

Let's talk affordable home decor... because who isn't on a budget? Being obligated to a mortgage doesn't mean you can't personalize your home.

Modernize the look of your family room with vibrant throw pillows, a guilt-free makeover for homeowners on a budget! More from Kate about home decor at Affordable (and Guilt-Free) Home Decor or start browsing...

Tell a Friend

Please tell your friends about Reversing Credit Problems: How to Pay Off Collections. I hope you'll come back and visit often.

Recent Articles

  1. Kate's Mortgage Rate Report April 28: No Hint at Rate Increase

    Apr 28, 16 10:56 AM

    Kate's mortgage rate report for the week ending April 28, 2016: Feds Do Not Hint at June Rate Increase
    April 29, 2016 update! Rates down slightly, back to lows of April 19th, with the average 30-year fixed sliding down to 3.67 percent.

    Kate's mortgage rate report for the week ending April 28, 2016: Ye…

    Read more

  2. Compare No-Cost HARP Refinance Program to Traditional Refi

    Apr 27, 16 08:25 PM

    Compare No-Cost HARP Refinance Program to Traditional Refi
    Ask Kate to compare no-cost HARP refinance program to traditional refinancing with fees: Maria is considering two refinance options. Both loans are for 20 years but one is for underwater homes while t…

    Read more